To recapitalize funds in an endowment fund is to take excess endowment fund income (surplus from the current year or prior year carryforward) and transfer that balance to the capital account. This means that the funds will be reinvested in the endowment fund for perpetuity and cannot be spent. The capitalized amount will purchase Pooled Endowment Fund units and investment income will be earned on these units each year.
The opportunity to recapitalize is offered once per year. Financial Services requires time to review and process the recapitalization requests and transfer the funds to the Pooled Endowment Fund before the fiscal year ends.
For Fiscal 2015, Financial Services will start accepting requests March 9th, 2015 and the deadline for submissions is April 3rd, 2015. Units will be calculated based on the March 2015 PEF unit value.
If you wish to recapitalize unspent endowment income, please submit your request to firstname.lastname@example.org.
To process your request we require:
The person with signing authority over the endowment fund should have approved the recapitalization request and be copied on the email.