Administrative Procedures

Gifts and Endowments

1. Purpose

To provide guidance for gifts and endowments.

2. Scope

This procedure applies to all colleges and the System Office.

3. Procedure

3.1

Gifts, Endowments and other Donations

1. A College Development Office or the KCTCS System Office of Institutional Advancement must administer all gifts, endowments and any other donation of personal property, cash or in-kind gifts.
2. Gifts and donations must comply with the requirements in the KCTCS Development Manual.

3.2

Gift Funds

1. Restricted gifts are funds available for current operations but are limited by donors as to specific purposes, programs or organizational units.
   1. Restricted funds shall be utilized in compliance with regulation, restrictions or limitations imposed by donors providing such funds.
2. Unrestricted gifts are funds available for current operations but are not limited by donors to specific purposes, programs or organizational units.

3.3

Endowments

1. Endowment funds are subject to the restrictions of gift instruments requiring that the principal be invested in perpetuity and only the income be utilized for expenditures. The three types of endowments are:
   1. True Endowment Funds – Donors or other outside agencies have stipulated that the principal of these funds cannot be spent.
      1. The income may be restricted for a particular use if the donor requests it.
      2. If it is unrestricted, endowment income generally can be used for any purpose.
   2. Term Endowment Funds – After a stated period of time, part or all of the principal of term endowment funds may be spent.
      1. The income may be restricted to a particular use per the donor’s request.
   3. Quasi-Endowment Funds (Funds Functioning as Endowment) – These funds have been designated by the Governing Board as endowment funds. 
      1. The Board may lift the restriction and then the principal may be spent.

3.4

Establishing a New Gift or Endowment Account

1. The KCTCS System Office of Institutional Advancement establishes new gift and endowment accounts. 
2. Form BA9 (Request for a New Gift Account), a copy of the check and the donor’s letter or documentation of the request is forwarded to the KCTCS System Office for Insitutional Advancement. 
3. The Associate Director of Finance & Accounting enters the new gift or endowment account into PeopleSoft Financials.

3.5

Payroll Deduction

1. KCTCS faculty and staff may authorize a semi-monthly payroll deduction under Administrative Procedure 5.5.5-P with the following guidelines:
   1. Minimum $1.00 per pay period contribution.
   2. Minimum 24-paycheck duration.
2. The College Development Office is responsible for:
   1. Obtaining Payroll Deduction cards from the KCTCS System Office of Institutional Advancement. 
   2. Providing employees with Payroll Deduction card if requested.
   3. Reviewing the cards for completeness before processing. 
   4. Submit Payroll Deduction card to the college payroll office and to the KCTCS Associate Vice President of Philanthropy.