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Expenditure of Gift Funds

Gift funds, both endowed and current use, are to be coded and used for the purposes communicated by the donor when making the gift. The University and the University of Illinois Foundation (UIF) are committed to properly administering the donor's gifts according to their wishes. University department and unit heads are responsible for ensuring the proper expenditure of gift funds at their disposal. This includes:

  • Assuring that the funds are expended in a timely manner and in accordance with the intent of the donor.

  • Verifying that gift funds have been properly established and correctly coded with the proper program and donor intent codes in the University accounting system.

  • Providing courtesy, non-technical, and informational reporting of the use of gift funds to donors as requested or as required by the fund agreement.

  • Assuring that all transfers of gift funds are in compliance with donor intent restrictions and fund accounting rules. University endowment income funds and funds received from the UIF as distributions of either gifts or UIF-held endowment income may not be intermingled.

  • When gift funds are not being expended on a timely basis and become inactive, units should review the purpose of the gift for ways it may be expended. If the funds cannot be used in a manner consistent with donor restrictions, the unit should discuss possible alternatives with the appropriate campus development office per the process outlined in Section 11.9, Endowment Administration of the Business and Financial Policies and Procedures manual.

  • When gift funds are fully expended, any remaining encumbrances should be cancelled, and the unit should work with the Office of Business and Financial Services (OBFS), University Accounting and Financial Reporting (UAFR), University Accounting Services to close and terminate the fund.

Please see Section 11.10, Expenditure of Gift Funds of the Business and Financial Policies and Procedures manual for additional information. Questions about the expenditure of gift funds may be directed to the OBFS UAFR - University Accounting Services.

Last Updated: July 3, 2007

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