Policy on Reinvestment of Endowment Income 

When the responsible person on an endowed account wishes to reinvest some or all of the available balance in their account back into the principal of the endowment, the following points should be considered:

• Determine the amount to be reinvested carefully.  Once money has been reinvested, it will remain in the endowment permanently.  Therefore, reinvestment should be an infrequent request used only to increase the endowment principal in order to meet a future goal or use of the fund. 
• Requests for reinvestment of endowment income should occur only once per year and should be requested before January 1st for reinvestment that will occur on July 1st. 
• If the balance of available funds is larger than the need for the use of funds, this should be brought to the attention of the senior staff member who oversees your area.  It is possible that donor wishes for the use of the fund are too restrictive and, with the approval of the senior staff member and the Vice President for University Relations, the donor could be approached by the senior staff member or the Vice President for University Relations to request a change in the restriction.

Steps for requesting a reinvestment of endowment income are:

1.      Draft a written request that includes the reason for the request for re-investment, the responsible person on the account, the amount to reinvest, and a brief description of the current restrictions on the use of the fund.

2.      If the area falls under Academic Affairs, submit the request to the Chair/ Director who will review the proposal and, if approved, forward it to the Academic Dean.  The Dean will then review the proposal with the Vice President for Academic Affairs.  If the proposal is approved, the Dean will communicate this decision back to the Chair/Program Director who may then submit the request to the Manager of Restricted Funds for action. 

3.      If the area falls outside Academic Affairs, the proposal should be submitted to the Senior Staff member for approval.  If approved, the final decision and the request may then be submitted to the Manager of Restricted Funds for action.

(revised: 11/3/06)