Chapter 9 - General Provisions
Publication Date: November 6, 2015
Responsible Executive: VP for External Relations
9.20 Guidelines for Managing Endowments
I. POLICY STATEMENT
The University of Texas at San Antonio (UTSA) appreciates and depends upon contributions from individuals, foundations, corporations, and other entities as their support is vitally important to the fulfillment of its mission and to the provision of high-quality educational opportunities. The establishment of endowments designated for student scholarships and fellowships, faculty and administrative support, programmatic purposes, etc. help fulfill the mission and goals of UTSA. Gifts must be solicited, accepted, processed, recorded, and acknowledged in a manner that protects the interests of both the institution and its donors as required by state and federal law, and UTSA and UT System policy and procedure. All UTSA employees directly or indirectly involved with endowments must attend UTSA endowment compliance training.
This policy establishes guidelines to manage endowments and to ensure that assets given to UTSA are accepted, managed, and invested to provide maximum benefit to UTSA and to minimize risk.
This policy applies to all UTSA employees who work with endowments received by UTSA.
IV. WEBSITE ADDRESS FOR THIS POLICY
V. RELATED STATUTES, POLICIES, REQUIREMENTS OR STANDARDS
UTSA or UT System Policies or the Board of Regents’ Rules & Regulations
- UT System Board of Regents' Rule 60101, Acceptance and Administration of Gifts
- UT System Board of Regents' Rule 60102, Fees for Endowment Administration and Management
- UT System Board of Regents' Rule 60202, Endowed Academic Positions
- UT System Board of Regents' Rule 70201, Investment Policies
- UT System policy UTS138, Gift Acceptance Procedures
- UT System policy UTS117, Endowment Compliance Plan Systemwide Standards and Guidelines
- UTSA Handbook of Operating Procedures policy 9.23, Procedures Governing Private Gift Solicitation, Acceptance, and Management
Other Policies & Standards
- Management, Investment and Expenditure of Institutional Funds (Texas Property Code, Chapter 163)
If you have any questions about HOP policy 9.20, Guidelines for Managing Endowments, contact the following office:
UTSA Development Office
Endowment: Funds that are invested or available for investment to produce revenue for operating use. The endowment distributions may or may not be restricted in purpose by the donor.
- Director of Endowment Services and Compliance
- Provides training and consulting to any faculty, dean or administrator who is an administrator of an endowment account on proper management and use of the respective endowment distributions with the goal of maintaining compliance in all endowment matters.
- Monitors use of endowments to ensure funds are used for the purposes(s) intended by the donor(s) and in accordance with the terms of the official document(s) associated with the establishment and approval of the endowment by the UT System Board of Regents or its designee(s).
- Informs faculty and/or administrators of any non-compliance and of the necessity to take corrective action.
- Supports and leads the Endowment Compliance Committee for the institution, providing recommendations for actions and decisions to be made by that committee.
- Prepares all institutional endowment reports for UT System and responds to any request of UT System, and prepares annual endowment reports for all institutional endowment principals.
- Endowment Compliance Committee
- The committee shall be comprised of key administrators from designated areas of UTSA.
- The committee shall meet regularly and be responsible for considering the endowment compliance effort from a broad institutional perspective and for reviewing UTSA's endowment compliance plan.
- At appropriate intervals, the recommendations and comments of the Endowment Compliance Committee shall be forwarded to the UTSA president for his or her review and approval through the designated endowment executive.
- Vice President for External Relations or his/her designee
- Reviews and approves all actions to be taken by the Endowment Compliance Committee
- Oversees the work of the director and provides supervision, guidance and support for all endowment matters.
- Signs all endowment agreements on behalf of UTSA.
- Endowment Agreements
A written endowment agreement is required for each new endowment. If, subsequent to the original gift, any person or entity is allowed to make additions to the endowment, the agreement should include language that such additions will be subject to the provisions of the original endowment agreement and will be considered permanent endowment funds. Contents of the endowment agreement should specifically include the following:
- donor name(s);
- gift description and/or amount;
- pledge description, amount, and due date;
- the exact title of the endowment;
- college, school, and/or department to benefit;
- the specific purpose for which endowment distributions are to be used;
- Such endowment shall never become a part of the Permanent University Fund, the Available University Fund or the General Fund of the State of Texas, and shall never be subject to appropriation by the legislature of the State of Texas;
- If, in the opinion of the UT System Board of Regents, circumstances change so that the purposes for which the endowment was originally established become illegal, impracticable or no longer able to be carried out to meet the needs of UTSA, the Board of Regents may designate an alternative use for the endowment payout, giving due consideration to the donor's special interests as evidenced in the original endowment agreement; and
- Endowment funds may be commingled with other funds held by the Board of Regents for the purpose of maximizing earnings on investments.
- Funds distributed from the endowment in one year may be retained and expended for the purposes of the endowment in subsequent years, or may be reinvested at the discretion of the Board of Regents or UTSA administration, as a permanent addition to the principal of the endowment.
- Establishment of Endowment
No endowment will be established or announced without prior approval by the Board of Regents or its designee(s).
No initial appointment will be made to an endowed or named academic position without prior approval as a request for budget change by the university president after review and approval by the appropriate executive vice chancellor.
- Distributions Spending
All endowment distributions spending must be in compliance with the endowment purpose and restrictions as outlined in the endowment agreement.
X. SPECIAL INSTRUCTIONS FOR INITIAL IMPLEMENTATION
XI. FORMS AND TOOLS/ONLINE PROCESSES