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
Steps for requesting a
reinvestment of endowment income are:
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.
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.
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.