Scope
This policy applies to bequests/gifts of $1,000,000 or more made directly to any UW System institution, where the donor is silent as to the expenditure of principal.
Purpose
The purpose of this policy is to provide for more long-term or perpetual support from large gifts where the donor has not chosen to “endow” or otherwise restrict the usage of gift principal. Recognizing that specific immediate needs may sometimes outweigh the need for additional perpetual but incremental support, a mechanism is also provided whereby UW institutions can request an exception to this policy.
Policy Statement
All new bequests/gifts of $1,000,000 or more where the donor is silent as to the expenditure of principal shall be identified as designated endowments, with only the income from the trust available for expenditure in accordance with the terms of the trust agreement. However, where the donor explicitly states that the principal of the gift be made available for expenditure, this policy will not apply. If an institution wants an exception to this proposed rule, the request for an exception, with appropriate justification, should be contained in the institution’s recommendation for acceptance and be incorporated in the Regent resolution. If at a later date, the institution wishes to seek an exception to the Regent imposed restriction, it should submit a request to the Office of the Vice President for Finance and Administration for consideration at the next meeting of the Business and Finance Committee.
Oversight, Roles, and Responsibilities
The Office of Trust Funds shall ensure that this policy is implemented for all relevant bequests/gifts. The UW System Vice President for Finance & Administration shall oversee requests for exceptions to this policy, and the Business and Finance Committee will give due consideration to such requests at its regularly scheduled meetings.
Related Regent Policies and Applicable Laws
None.
History: Res. 5631, adopted 10/05/1990; Res. 8930, adopted 11/05/2004, rescinded and replaced Res. 5631, and created Regent Policy Document 04-1, subsequently renumbered Regent Policy Document 31-15; Res. 10146, adopted 12/07/2012, amended Regent Policy Document 31-15. Res. 10801, adopted 12/08/2016, amended and renamed Regent Policy Document 31-15, “Large Unendowed Bequests or Gifts.” Technical correction made on 03/02/2023, as authorized by Res. 10835 (adopted 3/9/2017).