Gifts and Endowments
Policy Number: 5.3.11-P
Current Effective Date: 12/01/2018
Original Effective Date: 07/01/2009
Revision Dates: 07/01/2009, 10/01/2013, 11/07/2018
Revision Number: 3
Revision Summary: 3.14 dated 07/01/2009
Responsible Official: System Director of Treasury Management and Assistant Treasurer
To provide guidance for gifts and endowments.
This procedure applies to all colleges and the System Office.
Gifts, Endowments and other Donations
- A College Development Office or the KCTCS Office of Resource Development must administer all gifts, endowments and any other donation of personal property, cash or in-kind gifts.
- Gifts and donations must comply with the requirements in the KCTCS Development Manual.
- Restricted gifts are funds available for current operations but are limited by donors
as to specific purposes, programs or organizational units.
- Restricted funds shall be utilized in compliance with regulation, restrictions or limitations imposed by donors providing such funds.
- Unrestricted gifts are funds available for current operations but are not limited by donors to specific purposes, programs or organizational units.
- 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:
- True Endowment Funds – Donors or other outside agencies have stipulated that the principal
of these funds cannot be spent.
- The income may be restricted for a particular use if the donor requests it.
- If it is unrestricted, endowment income generally can be used for any purpose.
- Term Endowment Funds – After a stated period of time, part or all of the principal
of term endowment funds may be spent.
- The income may be restricted to a particular use per the donor’s request.
- Quasi-Endowment Funds (Funds Functioning as Endowment) – These funds have been designated
by the Governing Board as endowment funds.
- The Board may lift the restriction and then the principal may be spent.
- True Endowment Funds – Donors or other outside agencies have stipulated that the principal of these funds cannot be spent.
Establishing a New Gift or Endowment Account
- The KCTCS Resource Development Office establishes new gift and endowment accounts.
- 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 Resource Development Office.
- The Associate Director of Resource Development enters the new gift or endowment account into PeopleSoft Financials.
- KCTCS faculty and staff may authorize a semi-monthly payroll deduction under Business
Procedure 5.5.5-P with the following guidelines:
- Minimum $1.00 per pay period contribution.
- Minimum 24-paycheck duration.
- The College Development Office is responsible for:
- Obtaining Payroll Deduction cards from the KCTCS Office of Resource Development.
- Providing employees with Payroll Deduction card if requested.
- Reviewing the cards for completeness before processing.
- Submit Payroll Deduction card to the college payroll office and to the KCTCS System Director of Development.