HBP Part 2.2.11. Endowment Funds--57-Accounts

Handbook of Business Procedures

Date published:April 15, 2011
Last revised: April 15, 2011
Issued by: Financial Accounting and Reporting


A. Purpose

Endowed gifts (57-accounts) are those held for long-term investment for the purpose of generating income. The gift and related earnings are restricted by donor criteria. Generally, the principal of the fund is not expendable. Upon creation of the 57-account, a 30-account is linked to the 57-account to receive investment payout.

Distributions of investment earnings are automatically transferred quarterly into the endowment’s linked 30-account. These funds may be expended or reinvested into the 57-account. The University of Texas Investment Management Company (UTIMCO) manages endowment funds, as contracted by The University of Texas System Board of Regents.

Note: In rare circumstances, multiple 57-accounts may be linked to a single 30-account. The 57-accounts and associated 30-accounts are listed in the *DEFINE GBR command. For more information, contact The Development Office Endowment Services and Compliance (ES&C) Team at giving@www.utexas.edu or 512-471-5424.

B. Source of Funds

All gifts for endowment investments should be processed through the Development Office.

  • To Establish an Endowment

    To establish an endowed gift, contact the Development Office. Prior to the creation of the 57-account, the initial deposit and the appropriate documentation (i.e., donor gift agreements and letters) should be submitted to the Development Office.

    The Development Office will make the deposit into an endowment-specific holding account either in the college/school or with the Development Office. The Development Office Endowment Services and Compliance (ES&C) Team will facilitate the establishment of the endowment and creation of a 57-account. For more details about the documents required for each type of endowment, please contact the Development Office at giving@www.utexas.edu or 512-471-5424.
  • To Add Funds to an Established Endowment

    Gifts received after the endowment is established should be processed through the Development Office.

For information about depositing gifts, see Development Guide: Gift Services.

For answers to questions about endowment processing, see Development Guide: Endowments.

C. Terminology

  • Quasi-endowment

    A quasi-endowment is defined by The University of Texas System’s Policy UTS138 - Gift Acceptance Procedures as institution funds functioning as an endowed fund, which may be dissolved and returned to the institution with the approval of the UT Board of Regents.

D. Transfers

  • Gift and Data Services Department (G&DS) must be notified of all transfers in order to update the VIP system.
  • Transfers to a 57-account from a holding account are normally processed to establish the endowment.
  • Transfers from a 30-account can be made to the linked 57-account for reinvestment purposes.
  • Unrestricted gifts from a general or various donors/various purposes 30-account are allowed into a quasi-endowment 57-account when directed by the department administration.

E. Rules and Restrictions

  • Expenditures are not allowed on 57-accounts.

Part 2. Fund Accounting - Table of Contents