Purdue University Executive Vice President and Treasurer Memoranda Master Listing

PURDUE UNIVERSITY
OFFICE OF THE EXECUTIVE VICE PRESIDENT AND TREASURER
MEMORANDUM NO. A-29
(Superseded by A-28 October 6, 1986)

July 1, 1983

To: Deans, Directors and Heads of Schools, Divisions, Departments and offices, and Regional Campus Chancellors and Chief Business Officers

Re: Gift Fund Investments

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Executive Vice President and Treasurer Memorandum No. A-28 describes the creation of a Current Yield Pool (CYP) within the Endowment Fund and identifies conditions under which funds can be added to the pool. While the intent of the pool is to provide an opportunity for long-term investments to produce high current yields, there are other secondary uses of the fund that will be permitted.

1. CAMPAIGN/DEVELOPNENT ACTIVITIES

   Subsequent to or in conjunction with the Plan for the Eighties, most Deans and Chancellors have initiated development activities at the School and Campus levels. Funds raised under these programs have typically been intended for current operations and deposited into the 66, 67, and 68 funds where they have remained until expended. In order to provide additional incentive and flexibility for the campuses and schools to develop outside gift support, the following extension of Current Yield Pool policy is effective immediately and applies to funds received after the date of this memorandum:

   1. Unrestricted gifts not intended for endowment will be eligible to participate in the Current Yield Pool without specific donor authorization. Accounts will normally be established in the 66, 67, and 68 funds which will be credited with the earnings on a semi-annual basis.

   2. For participation in the CYP, a minimum amount of $10,000 of either individual or accumulated gifts must be committed. Contributions from formally approved development programs, i.e., Krannert's "Campaign for Distinction" are authorized for full (first dollar) Current Yield Pool participation.

   3. The funds must be left in the CYP for at least 12 months. (Additions can be made as additional gifts are received.)

   4. Ninety (90) days' notice of withdrawal must be provided to the Comptroller.

   While an important aspect of the expansion of the CYP is to provide greater fiscal flexibility to areas, schools, and departments, it is geared toward longer-term projects. Funds to be used for current expenditure should continue to be deposited to and expended from the 66, 67, and 68 funds.

2. MEMORIAL GIFTS

   The University periodically receives gifts in memory of its students, staff, alumni, and friends. Outlined below are general guidelines as to how these memorial gifts should be handled from the University's perspective:

   1. Memorial funds of $5,000 or more or funds which, through additional contributions can be expected to reach the $5,000 level, will be allowed to participate in the CYP. Donors to memorial funds will not be required to sign participation agreements.

      In addition to the CYP, the regular Endowment Fund is an investment option most appropriate when it is important to increase the principal of the fund to offset the impact of inflation.

   2. Memorial funds of less than $5,000 will be deposited directly co appropriate operating accounts from which expenditures are to be made. Funds in excess of $5,000 can also be spent directly as desired.

   3. Where the funds are provided by a single entity or person, the purpose/uses of the gift are usually specified by the donor. However, in most cases, checks are received from many persons "In memory of "___________________" or to be the "___________________" Memorial Fund". In these cases, the appropriate Dean or Director, with input from surviving family if deemed necessary, should work with the Comptroller to establish the purpose for which the funds are to be used. The initial participation date of a memorial fund will be upon the approval of the Comptroller following the accumulation of the required minimum level of monies. Additions to established CYP funds may be added upon receipt.

   4. Acknowledgement of memorial gifts is the responsibility of the receiving School, Division, or Department in con-unction with the Office of the Vice President for Development.

3. PROCEDURES

   Please contact the Comptroller to initiate Current Yield Pool investments or for answers to any questions you may have.

F. R. Ford
Executive Vice President
and Treasurer

 

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