Approved by the Board of Trustees October 4, 1991
The Board of Trustees endorses in principle the establishment of permanent endowments by constituencies within the University. All endowment funds will be subject to the following:
1.1 The Board of Trustees of the University will review and approve the terms and procedures governing each endowment.
1.2 The terms and operating procedures for each endowment will be prepared by the donor in consultation with the Secretary of the Board of Trustees.
1.3 The University will provide financial management and reporting of the fund. The money will remain intact and projects will be funded from the interest from the endowment. This income may be accrued for some time in order to accumulate funding for a large project.
1.4 Any donation to an endowment fund will be received by the University and a charitable receipt will be issued to the donor. Assuming we have an approved endowment account, the money will be deposited to the account and invested in the University's pooled investment fund, earning interest at the prescribed rate. The income, depending on the terms of the endowment, will be credited to an income account or credited to the endowment account. Income credited to the Endowment Account will likewise be invested in the pooled Investment Fund.
1.5 Any donation to an endowment fund must comply with the Income Tax Act and Interpretation Bulletins of Revenue Canada.
The two basic principles underlying such endowments are as follows:
2.1 Funds made available through an endowment fund should not have the effect of reducing the operating budget of the Faculty that is endowed but should enrich the Faculty beyond its budget allocation.
In the event that a donor proposes an arrangement that falls outside the terms of these procedures, the Vice-Principal Resources will be consulted.
2.2 Decisions on how the interest from an endowment fund will be spent ultimately rest with the University although it is understood that such decisions could be made on the recommendation of the donor.
A set of operating procedures to be established for each endowment will include the following information: