ENDOWMENT FUND CREATION & DOCUMENTATION

Presented by

Donor Services – University Advancement

AGENDA

• Principles behind good agreements

• Core elements of gift agreements

• A walk through an endowment agreement

• Fund type specific considerations

• Post agreement process (A&S specific)

• Endowment resources

PRINCIPLES OF GOOD AGREEMENTS

PRINCIPLES BEHIND GOOD AGREEMENTS

GOOD AGREEMENTS_______

• Are as unrestricted as possible

• Meet donor expectations and desires

• Are realistic about department needs and abilities to meet expectations (…especially long-term)

• Comply with the law and University policies

• Written for the long-term (…in perpetuity)

• Provide alternatives if purpose becomes impractical or impossible over time (…fallback/amendment language)

• Capture donor motivation

• Relies on template language

ADVANTAGES OF AGREEMENT TEMPLATE LANGUAGE

• Boilerplate

• Time tested

• Pre-reviewed by Attorney General

Endowments with certain preference language require prior authorization and more extensive review

CORE ELEMENTS OF GIFT AGREEMENTS

CORE ELEMENTS OF GIFT AGREEMENTS

• Purpose

• Funding

• Acceptable and authorized uses

• Administration

• Spending authority

• Donor requirements (reporting, etc…)

• Amendment authority

• Authorized signature(s)

A WALK THROUGH AN ENDOWMENT AGREEMENT

FUND TYPE SPECIFIC CONSIDERATIONS

FUND TYPE SPECIFIC CONSIDERATIONS

Scholarship/Student support• Tuition and related fees; room & board• Student support funds should be more broad-based

(since distributions are less) – conference attendance, tuition, research costs, poster presentations, etc…

Graduate Fellowship• Same as scholarship/student support allowance,

but may also pay stipends (T.A.- and R.A.-ships)

FUND TYPE SPECIFIC CONSIDERATIONS

Faculty Support• Faculty fellowship (holder appointment required, as

approved by the Provost’s Office)• Professorship or Chair (holder appointment required,

as approved by the Board of Regents via the Provost’s Office)

• General faculty support (starting at $50,000)

Research Support• May support specific research areas – research may

be conducted by faculty and/or students, depending on donor wishes. University owns all research results (otherwise gift is not a gift)

FUND TYPE SPECIFIC CONSIDERATIONS

Amendment• Donor or department/University initiated

‾ As amendments are difficult to execute after a donor’s passing, it’s important to think about a broad use/purpose for the fund at the outset

• UPMIFA

Specialized restrictions requiring Attorney General consultation

• I-200 (race, ethnicity, national origin, gender) – alternatively, work for language that is in the spirit of what the donor intends, but that is technically I-200 compliant

• 14th Amendment (Equal Protection Clause) – related to adding restrictions around U.S. citizens/non-U.S. citizens

FUND TYPE SPECIFIC CONSIDERATIONS

Donor funded (true endowment)• Outright gifts (cash, securities, real estate)• Pledges (pledges may not exceed five calendar years

without prior, executive-level authorization)

Department funded (quasi endowment)• Unrestricted gifts redirected by department to

establish endowment• Gifts originally given for current-use (e.g. memorial

gifts) redirected to the establishment of an endowment with the same purpose as the current-use fund

POST-AGREEMENT PROCESS

POST-AGREEMENT PROCESS (A&S)

CAS Divisions &

Depts

Treasury

(Investm

e

nt Data)

ADVANCE • Donor info• Gift/Pledge Info

Online

giving

Central Donor Services

A&S

Stewardsh

ip Tracking

Our Donors

CAS Agreements

ENDOWMENT RESOURCES

ENDOWMENT RESOURCES & INFORMATION ACCESS

• Keeps original agreements and other pertinent documentation

• Always share additional documentation with the Treasury Office and Donor Services

TreasuryOffice

• Access requires permission• Most endowment agreements are accessible online: https://secure.gifts.washington.edu/rw/uwnetid/

• Contact Advancement HelpDesk for access (advhelp@uw.edu)

• If you can’t find an agreement here, contact the Treasury Office or Donor Services for a copy

ReportWriter.Net

• Advancement Intranet: http://depts.washington.edu/uwadv/

• Endowment Toolkit: https://depts.washington.edu/uwadvw/uw-toolkits/endowments/

Online Resources

MORE RESOURCES

• Website: http://f2.washington.edu/treasury/CEF

- CEF Annual Report- Investment and Spending Policies- Quarterly performance reports- Security Gifts

Treasury Office

• Available: - February, May, July, November

• Format:- Electronic (.pdf & Excel)

• Distributed to:- Various administrators and

advancement officers by request

Quarterly CEF

Activity Reports

KEY CONTACTS & LINKS

Treasury OfficeYelena Isakova, Manager – Endowment

Admin.685-3814 yisakova@uw.edu

Alana Askew, Assistant Treasurer616-3673 alana01@uw.edu

Lisa Edlin, Associate Treasurer685-8030 lmedlin@uw.edu

Ann Sarna, Associate Treasurer616-1145 anyasar@uw.edu

Ping Tan, Manager - Investment Accounting

543-3530 pingtan@uw.edu

Office of Gift PlanningElizabeth Garner (Hikida),

Administrator - Estate Gift Acceptance685-9082 ehikida@uw.edu

Advancement Services

Donor ServicesHolly Tobosa, Assistant Director

543-7103 hillhp@uw.eduEmily Fondaw, Project Manager

221-7622 fondawer@uw.eduLynn Sullivan, Associate Director

685-9911 lsales@uw.eduMark Lanum, Director

543-7916 mlanum@uw.edu

Gift ProcessingNanci Modolo, Director

685-9081 nancim@uw.edu

QUESTIONS?