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Endowment transfer

  • 1.  Endowment transfer

    Posted 01-02-2020 02:36 PM
    We have received an endowment transferred from another organization. Do I handle the wire transfer of funds as a donation in my fundraising database? My business office is not recognizing it as a donation. How do folks handle these situations?

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    Carla Murphy
    Executive Director Advancement Initiatives
    Sacred Heart University
    murphyc5@sacredheart.edu
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  • 2.  RE: Endowment transfer

    Posted 01-02-2020 03:00 PM
    This depends entirely on the reason why the endowment is being moved.  Can you explain the background for this?  Did the donor request the change?

    John H. Taylor
    Principal
    John H. Taylor Consulting, LLC
    2604 Sevier St.
    Durham, NC   27705
    919.816.5903 (cell/text)

    Serving the Advancement Community Since 1987






  • 3.  RE: Endowment transfer

    Posted 01-02-2020 04:01 PM
    I have two cases that I am dealing with right now:
    1 - a college closed it's doors and the original donor, whose child is a faculty member of ours, requested the funds be transferred to us and we are drafting a new agreement for the fund purpose
    2 - we absorbed another college and all of their endowments have been transferred to us
    Thanks!

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    Carla Murphy
    Executive Director Advancement Initiatives
    Sacred Heart University
    murphyc5@sacredheart.edu
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  • 4.  RE: Endowment transfer

    Posted 01-02-2020 04:35 PM
    We had a similar situation at my previous foundation.  We did not manage it as a donation.  Instead, we managed it as related business income.  Check with your CFO, but this should not threaten your NPO exemption as it's charitable revenue.  And if you didn't fundraise it yourself, it shouldn't be recorded or counted as if it were.

    -Eric

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    Eric Valdescaro
    Senior Director, Advancement Services
    University of Memphis
    eric.valdescaro@memphis.edu
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  • 5.  RE: Endowment transfer

    Posted 01-02-2020 05:06 PM
    In the first case, as long as the college is not one of your own colleges within the University, this would be a countable and recordable gift.  But it would be a gift from the College and recorded for VSE purposes under "Other."

    In the second case, there was no charitable intent.  You simply obtained assets through a merger.  There is no countable gift.

    John

    John H. Taylor
    Principal
    John H. Taylor Consulting, LLC
    2604 Sevier St.
    Durham, NC   27705
    919.816.5903 (cell/text)

    Serving the Advancement Community Since 1987