Quasi Endowment Agreement

The bequests made and the proceeds of resilient life income plans, designated by donors for the creation of quasi-foundations (which allow the use of capital and income), should be verified with the EPP and the CFO before the creation of a quasi-foundation. In the event that, on that date, Dartmouth College decides to use (or plans) the client, the funds may be kept in an operational reserve until they are used, to avoid any short-term investment loss if added to the foundation pool. The process of reusing an existing quasi-foundation is similar to the process used to create a quasi-foundation. The division head is expected to send a header memo signed by the division head to the Deputy Director of Financial Management Services (Kristina Humphreys, khumphreys@tamu.edu). to request the reassignment of the Foundation. The memo should contain the same information needed to request a new quasi-equipment. Sufficient information should be provided to support the need for reallocation of funds. Quasi-foundations (historically known as “funds that function as foundations”) are invested funds that allow both capital and income expenditures. Therefore, quasi-foundations are not permanent funds, but are considered long-term investments. As a general rule, quasi-foundations are created with funds designated by the college, but in some cases, a donor wants to create a quasi-foundation for specific purposes. FMO will draft a draft of the Board of Regents Minute Order/Agenda Item and the process will follow the steps above for the creation of quasi-ending accounts. If this is refused, the funds will remain at the quasi-foundation, in accordance with the original request.

Quasi-foundations are considered long-term investments and are expected to remain intact for at least seven years. The process of creating a quasi-foundation begins at the department level. The head of the department should file a signed note above the header in which he requests that the funds identified be allocated to the creation of a quasi-foundation. The memo should be addressed to Carla Duffard, Financial Accountant IV, Financial Management Operations (cduffard@tamu.edu) and contain the amount, source of funds, general information and purpose of the Foundation (ie, use of quasi-Foundation revenues). Additional documents should be attached to the note to support the background information cited in the memo, such as a donation agreement between the donor and Texas A-M or a copy of the donor`s Last Testament. Gifts must be accepted according to systempolicy 21.05. If a department wants to qualify unlimited funds as quasi-foundation, the next process must be followed. This directive was revised on 4 February 2020 to update and integrate information on the IU-Held foundations.

Although quasi-foundations allow the Principal to be removed, Dartmouth College generally considers them to be long-term investments whose primary investment remains intact for at least seven years. As a result, all withdrawals from the client are subject to approval: for the University of Texas A-M, the decision-making power, since it concerns the authorization of quasi-endings, belongs to the Council of Regents. Although this policy does not apply to foundations and quasi-foundations owned by IUF, IUF will provide certain administrative services and donors related to foundations and quasi-foundations managed by IUF that fall under this policy.