UNIVERSITY
OF CINCINNATI
Quasi-Endowment Policy
The purpose of a quasi-endowment fund is to provide the opportunity for
available resources to be carried in a fund functioning as an endowment. That
function is primarily one of serving as an investment vehicle until those
resources are needed for operating purposes. Accordingly, the investment
commitment should be both substantial and long-term in nature. Quasi-endowment
funds should not exist simply as interest bearing "checking accounts".
Therefore, the establishment and maintenance of quasi-endowment funds should be
subject to the following limitations:
- Any departmental gift funds
are eligible for conversion into a quasi-endowment fund, subject to the
approval of the respective Dean and the Senior Vice President. (Use an A-123
form to establish the fund.)
- The minimum principal to
establish any new quasi-endowment fund must be $25,000.
- Proposed additions to the fund
principal must be in minimum increments of $5,000. The only exception is
where an election is made for all annual income to be applied to principal
in order to build the quasi-endowment fund.
- The original principal must
remain invested for a minimum period of two years.
- No partial liquidations of the
fund are allowed. Any exception requests should be addressed, through the
appropriate Dean, to the Treasurer with justification who will forward to
the appropriate Senior Vice President for final resolution.
- All quasi-endowment funds are
subject to the University's Endowment Spending Policy.
- Any funds in existence as of
the date of adoption of this policy are "grandfathered".
POLICY APPROVED BY JOINT ACADEMIC/ADMINISTRATIVE COUNCILS 10/9/92.
