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Business and Financial Policies and Procedures

8.10.2 Payments from Gift or Endowment Income Funds

Policy Statement

The University of Illinois Foundation (UIF) has final authority in determining how UIF governing documents are interpreted. University Counsel has final authority in determining how estate gifts to the University of Illinois System are interpreted based on governing documents, such as donor will or trust.

Reason for the Policy

Language used in donor fund agreements has varied over time, making interpretation difficult. Units must be aware of this and accept interpretation from UIF or University Counsel when paying students from gift or endowment income funds to ensure compliance with Internal Revenue Service (IRS) and U.S. Department of Education (ED) guidelines on how payments to students must be reported.

Applicability of the Policy

Units processing payments to students from gift funds (4M or 2G fund type) or university endowment income funds (4J fund type).


Once UIF or University Counsel has determined the true intent of the governing document(s), UIF’s or University Counsel’s interpretation must be enforced based on the definitions provided within each payment type listed in Payments to Students, not necessarily as worded in the governing document(s). For example, an older governing document may use the term “award”, whereas the true intent as determined by the UIF or University Counsel is a scholarship. Payments from this fund must therefore be processed as scholarships, not as awards.

Last Updated: March 11, 2019 | Approved: Senior Associate Vice President for Business and Finance | Effective: March 11, 2019

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