Funds with Donor Restrictions

Policy number: 4.2

Policy section: Business & Finance

Revised Date: January 2, 2019

1. Definitions

Definitions of capitalized terms are set forth in Appendix A.

2. Policy Statement

It is the policy of the University that the University’s use of Funds with Donor Restrictions should be consistent with the donor’s intent.

3. Purpose

The purpose of this policy is to establish responsibilities and guidelines for the University’s use of Funds with Donor Restrictions.

4. Applicability

This policy applies to all University Personnel and others with oversight or spending authority over Funds with Donor Restrictions. It does not apply to funds of the University from sources other than donors and does not apply to donations that are not restricted donations.

5. Responsibilities

University Personnel and others with oversight or spending authority over Funds with Donor Restrictions, are responsible for solicitation, approval and acceptance of Funds with Donor Restrictions in compliance with University Policies and procedures, including requirements for advance approval. All expenditures and transfers made to or from Funds with Donor Restrictions should be consistent with the donor’s expressed intent, and must comply with University Policies and procedures. All University Personnel and others with oversight or spending authority over Funds with Donor Restrictions are responsible for properly accounting for Funds with Donor Restrictions.
The Office of Development and External Affairs (“DEA”) will record all restricted donations in an accurate manner that facilitates required internal and external reporting, including reporting to the Internal Revenue Service and preparing the University’s financial statements and reports.
The Office of Budgets and Finance will record all Funds with Donor Restrictions and related expenditures in a manner consistent with the records of DEA.
The Vice President for Business and Finance, the Vice President for Development and External Affairs, and, in the case of endowment funds, the Treasurer and Chief Investment Officer, or their respective designees, may establish procedures as needed so that the use of Funds with Donor Restrictions complies with this policy.
Funds that are not donor restricted must be accounted for separately from Funds with Donor Restrictions and must not be commingled with Funds with Donor Restrictions.

6. Questions

Questions about this policy may be directed to the Vice President for Business and Finance.

Appendix A: Definitions

“Funds with Donor Restrictions” means funds received from donors restricted to use for specified University purposes (e.g, endowment, scholarships and chairs). Funds with Donor Restrictions are restricted for budgetary and accounting purposes and must be segregated in the University’s financial systems to ensure compliance with the specified purposes and related terms of the donor gift.

“University Personnel” means faculty, staff, students, volunteers and contractors.

Revised: January 2, 2019

Adopted: June 1, 1994

The official University Policy Manual is housed in the Office of the University Secretary. The University Secretary is responsible for maintaining new and updated policies and for maintaining this website. Should the official University Policy Manual conflict with any internal policies, procedures, departmental administrative rules, or guidelines, that may be contained in manuals provided by schools, departments, or divisions within the University, the official University Policy Manual controls.

Southern Methodist University

University Policy Manual