Doc. T07-018, as amended
Passed by the Board of Trustees on March 14, 2007
Latest revision: December 11, 2013

Purpose

To ensure that the proper approval is in place for the establishment of any new quasi-endowments, and for any additions or withdrawals from existing quasi-endowments.

I. Introduction

The University has made a commitment to grow its endowment funds. The University and campuses collectively shall seek this growth through a combination of contributions to both the true and quasi-endowment funds. Annually, each campus shall be required to grow their endowment funds through a combination of donor contributions and unencumbered unrestricted operational fund transfers as quasi-endowment funds. These funds shall be transferred to the University of Massachusetts Foundation, Inc. (Foundation) while remaining designated funds to the campus that generated those funds. The quasi-endowment funds shall be invested consistent with a strategy specific to long term assets by the Foundation subject to an agreement between the University and the Foundation.

II. Policy Statement

  1. All such funds shall be allocated to this purpose at the beginning of each fiscal year and reported annually in the University’s annual audited financial statements. Such funds shall be transferred to the Foundation and the normal spending rules and accumulation of earnings and appreciation will apply. All funds will be designated to the campus from which they were contributed.

    The principal of such funds may be withdrawn from the Foundation and returned to University when and if the President so authorizes. The President will notify the Board of Trustees whenever such a withdrawal is approved.

  2. Quasi-endowment funds may be used as matching funds for permanent endowment if the President so authorizes.
  3. The President is authorized to suspend required annual unrestricted operational fund contributions to the quasi-endowment and will notify the Trustees when such suspensions occur.

III. Standards

The President, in consultation with the Vice President(s) and Chancellors, will issue administrative standards to implement this policy. Campuses may establish campus policies (and guidelines) within the scope of this policy (and standards). Campus policies (and guidelines) may be more, but not less, restrictive than the standards.

 

Doc. T07-018, as amended | Quasi-Endowment Policy
Passed by the Board of Trustees on March 14, 2007
Revised:
June 10, 2009
December 11, 2013