Gift Funds Returned to the University of Illinois Foundation

The University of Illinois Foundation (UIF) solicits, receives, records, and administer private gift funds on behalf of the University and transfers gift funds to University fund codes to spend in accordance with the donor's intent. Under certain circumstances the University may return gift funds to the UIF in conjunction with departmental efforts to prudently administer these resources. In addition, in order to appropriately administer gifts it has received, the UIF may also request the return of funds previously transferred to the University.

Reasons for Return of Gift Funds

Gift funds transferred to University funds may be returned to the University of Illinois Foundation for the following reasons:

• To invest gifts received by the University or previous UIF gift distributions into a UIF endowment or quasi-endowment with identical or allowable (more, not less restrictive) gift restrictions.

• To reinvest accumulated income earned on a UIF endowment back into a UIF endowment or quasi-endowment principal account with identical or allowable (more, not less restrictive) gift restrictions.

• To correct funds transferred in error.

Requesting Return of Gift Funds

Before requesting return of funds to the UIF, the unit should ensure that the transfer will not generate an overdraft in University fund codes and that the gift will remain in accordance with the donor's intent. After assuring compliance with these requirements, the unit must prepare or obtain the following documents to support the transfer:

• Fund Transfer Request Form, approved by the department/unit head (or delegate).

• All documentation of donor intent and/or original fund solicitation (i.e., fund agreement, documentation or letters creating fund, etc.).

• When correcting funds transferred in error, a copy of the University Banner operating ledger transaction statement or other documentation showing the original transaction and when it was recorded.

Units must forward the completed set of documents to the UIF Stewardship Services Department located in Urbana for review and approval. The UIF Stewardship Services Department will forward a copy of the approved request to the Office of Business and Financial Services (OBFS), University Accounting and Financial Reporting (UAFR) for additional review and processing.

When initiated by the UIF, the return of gift funds must reflect funds transferred to the University in error or must otherwise facilitate appropriate administration of the gift in accordance with the donor's intent. University units may not request that the UIF retrieve funds from the University on their behalf. The UIF must provide the UAFR with documentation supporting its requests for returns.

The UAFR must review and obtain required approvals for disbursements to the UIF prior to the transfer of funds. Each month the UAFR will summarize the approved requests, record entries to charge affected fund codes, and forward the summary total with copies of supporting request forms to both the UIF and the OBFS, Office of Cash Management and Investments (OCMI). The OCMI will prepare a wire transfer to return the funds to the UIF.

Last Updated: July 3, 2007