Funds created for gifts or endowments are determined by the specific donor designated purpose.
A separate UC Fund and associated expense account may be required for each gift or endowment income purpose. Regents’ endowments are held at UCOP and UCD Foundation endowments are held externally, but the endowment income is distributed to campus. The following is a list of scenarios in which may require you to create a new account:
- A new gift has been received for which your department does not have an existing account with a purpose matching the new gift’s purpose.
- Your department has an existing account which matches the purpose of a new gift, but a large gift is to be tracked separately.
- A new Regents or UCD Foundation endowment is established and a request for an endowment payout account is sent to your department by A&FR - Gifts & Endowments or by Development and Alumni Relations - Foundation Accounting.
- Gift acceptance paperwork is submitted by your department and received by Advancement Services, but the account provided is determined to be inappropriate for the donor designated gift purpose so a new account is requested.
- Your department or Development Office decides to create a new allocation to link to the on-line giving site or a solicitation piece.
Fund numbers for current use (Regent and Foundation) and Foundation endowment are in fund blocks "4XXXX" and "5XXXX". Regents’ endowments are in fund blocks “3XXXX”, “13XXX”, “16XXX” and “93XXX”. These funds are in the Sub Fund Group Types and Sub Fund Groups listed below.
- Gifts: Per UCD PPM 260-15, expenditure of gifts shall be in accordance with donor wishes as agreed by the University.
- Endowment Funds: In general it is recommended that endowment income be spent within three years of receiving it. Per the Accounting Manual Chapter E-525, the university is legally required to administer the endowment funds it has accepted, in accordance with all the terms imposed by the donor. Since an implied requirement of the law is that the university must put endowment payout to use, income may not accumulate for an unreasonable period of time. To ensure compliance with this law, The Office of the General Counsel (General Counsel) has recommended that endowment income should not be allowed to accumulate beyond five years. This policy does not apply to those situations in which the donor has implicitly or expressly authorized the accumulation of income for longer periods.
Sub Fund Group Types
- E - Endowment Funds Income
Sub-Fund Group Description ENDOW ENDOWMENT INCOME FUNDS INCOME ENDOWU ENDOWMENT INCOME FUNDS UNRESTRICTED
- R - Private Restricted Gifts
Sub-Fund Group Description FENDOW FOUNDATION ENDOW INCOME FUNDS NEW PRIV RESTRICTED GIFTS PRGIFT PRIV RESTRICTED GIFTS
- U - Private Unrestricted Gifts
Sub-Fund Group Description PRUGFT PRIV UNRESTRICTED GIFT
Frequently Asked Questions
- How do I create a new gift or endowment fund?
For information about creating a new gift or endowment account, visit the Creating a New Gift/Endowment Account page.
Please remember while it is tempting to template an existing account, it is best to start fresh. If you us a template, review carefully to be sure that all fields have been updated as needed.
- I’ve received a gift check. To what account should I deposit it?
- All gift check deposits are to be processed by Advancement Services. Check gifts received at the department need to be delivered in person or via courier to Advancement Services at 202 Cousteau Place, Suite 185. Information on courier pick-up locations and times can be found on the Advancement Services webpage. Cash gifts may be taken to the Cashier’s Office or Advancement Services for deposit, following cash handling policies. Gifts should never be deposited directly to a gift expense account.
- Can I deposit money received as a sponsorship to a gift account?
- Sponsorship funds where the donor has not received benefits valued greater than 2% of the total amount provided are considered gifts and should be processed as such. For sponsorship funds where the sponsor has received benefits, such as advertising or table display space, with a fair market value (FMV) greater than 2% of the sponsorship amount: 1) the amount equal to the FMV of the benefit received should be deposited to an appropriate University Related Event account, and 2) the remainder is to be processed as gift. For more information on sponsorships, visit the How to Handle a University-Related Event Account page.
- Is it okay to name a gift account “Various Donors”?
- Although it was commonly done in the past, naming an account “various donors” is unnecessary. Unless an account was established to receive funds from a single donor, it is implied that the account could receive gifts from various donors as long as the donor intended purpose is the same. The account name should briefly reflect the account purpose as designated by the donor(s).
- How do I know if an expense is allowable on a gift/endowment fund?
- A detailed purpose on gift expense accounts and on the associated fund assists in determining whether an expense is allowable on that fund/account per the donor designated intent.
- Can we accept gifts from government agencies?
- No, funds received from government agencies are not considered gifts. Consult with Sponsored Programs, as the funds may in fact be a grant. If not, the funds should be posted as income to an appropriate self-supporting account.
- There is a small balance left in an old gift fund. Can I move the balance to another fund/account?
- No, gifts need to be expended in full according to the donor intended purpose, as this was the expectation of the donor. If it is determined that donor intended purpose can no longer be met, your Development Office will work with the donor to determine if the remaining balance can be re-allocated for a new purpose or if it needs to be refunded.
- Can overdrafts be carried on gift/endowment funds?
- Gift and endowment funds should not be allowed to go into overdraft. At year end, all gift and endowment overdrafts must be cleared.
- A gift account is no longer needed. Can it be expired?
Yes, if a gift expense account is no longer needed, it can be expired. The balance and all object consolidations must be zeroed out. To expire, submit an account document to add an account expiration date and continuation account. Account award end date will not expire an account and will not prevent expenses from posting to the account. Keep in mind that endowment expense accounts should not be expired if they are the primary account receiving the annual endowment payout. Also, accounts linked to the on-line giving site, a current solicitation, active pledges or on-going payroll deductions should not be expired. If an account linked to the on-line giving site is determined to no longer be needed, notify your Development Office and Advancement Services to have the allocation removed from the web site.
For more information on expiring an account, please see Expire an Account process guide.
- What is the process if a gift was posted incorrectly or a donor has requested a re-allocation?
- Sent a correction/re-allocation request to the DEVAR Help Desk. Include the change/correction needed, donor name, allocation to which gift was posted, amount, associated project or tracking number, reason for change/correction, new allocation if applicable, and any back-up documentation. Advancement Services will notify the appropriate parties to make the updates in Advance, on the Foundation books, and on the FIS ledgers as needed.