Policies & Procedures

ALLOCATION POLICY :                                                                      

The Development Foundation uses the Financial Edge as it’s endowment management and accounting software. The Financial Edge is a software product provided by Blackbaud. The Development Foundation uses the Financial Edge to calculate income allocations and management fees on a monthly basis. Each endowment fund may be invested in multiple investment pools. The allocation will be based on the average daily fair market balance of that endowment fund that is invested in the pool that is being allocated.

Earnings from an investment pool will be allocated monthly so long as the earnings can be fully calculated for that month. In the case of some alternative investments, it may not be possible to fully calculate the earnings on a monthly basis. In these cases the average daily balance may be based on a time period longer than one month and could extend from inception to the final distribution from the investment.

One goal set by the investment committee of the Development Foundation is to remain as fully invested as possible while retaining sufficient cash to satisfy distributions for scholarships and other university support for the upcoming fiscal year. Where possible the operating accounts will remain in the cash pool. When large distributions are approved for certain endowments, it may be necessary to hold those funds in the cash pool.