6.1.9 Endowment Policy
CAMPION COLLEGE BOARD OF REGENTS
POLICY: Endowment Policy
Date Initially Approved: May 11, 2005
Endowments consist of internal allocations by the Board of Regents and donations made to the College where the principal gift is required to be maintained intact in perpetuity, or spent over a specific timeframe as specified by the donor. This policy provides direction about the requirements, which must be met by both donors and the College before an endowment can be accepted.
This policy is to:
- protect the interests of the donors
- allow the College to economically carry out the requirements set down by endowment guidelines
1. Endowments shall have a written agreement in place between the donor and the College. Criteria include:
- Specific guidelines detailing the purpose of the endowment
- Specific agreement on how the principal of the endowment will be provided to the College
- Direction on how the investment income generated from the endowment is to be used
- Parameters for selecting scholarship recipients and a default criteria
- A method for gaining the approval of any changes in the endowment guidelines in the event of changes in circumstances which make it impractical to continue to use income from the endowment for the designated purpose. Amended terms shall adhere as closely as possible to the donor(s) original intent for this fund.
2. The College will seek changes to any bequeathed endowments through probate when the College is unable to fulfill the donor's guidelines.
3. Donors will not be permitted to have control over the investment of endowment funds or the use of the income beyond the initial restrictions. Endowed funds will be invested in accordance with the College's Investment Policy.
4. The economic value of the endowments will be protected by limiting the amount of investment income that may be spent to 5% of the 4 year rolling average market value of the principle gift, except as otherwise stipulated by the donor(s).
Investment income earned in excess of this amount is added to the endowment principal. In the event earnings are not sufficient to maintain the 5% rolling average, payments will be decreased accordingly. Under no circumstances will the original principal be spent, unless authorized by the Board of Regents and the donors through a change in the endowment guidelines.
a. Investment fees charged by the fund Manager (as approved in accordance with the College’s Investment Policy) will be deducted from the earnings of the endowment fund. The College will not allocate any of its other administrative costs to the endowment fund.
b. The President is responsible for ensuring the continued use of the income according to the specified donor guidelines.
2. Endowments Guidelines
a. A minimum of $20.000 is required to establish a named, restricted endowment fund.
b. The College will maintain a general endowment fund, the proceeds of which will be used for specific purposes such as the on-going maintenance, repair or replacement of Campion’s facilities and equipment. A program to encourage and proactively solicit donations and bequests to the general endowment fund will be maintained by the College.
3. Scholarship and Bursary Guidelines
a. A minimum of $15,000 is required to establish an endowed scholarship or bursary.
b. All criteria for endowed scholarships or bursaries must be outlined prior to approval and acceptance by the College.
c. Guidelines must be flexible enough to alleviate any potential difficulties, which would make it impossible to administer the scholarship or bursary in any one year.
d. Donors are not allowed to choose recipients unless the College provides the donors with a list of acceptable recipients.
e. Recipients will be encouraged to communicate appreciation to donors of scholarships or bursaries.
4. Chairs, Professorships and Research Programs
a. Proposals for the establishment of any endowed chair, named professorship. visiting professorship or lectureship. or research program will be subject to applicable academic review processes and require the approval of the President.
b. Endowment principal will be sufficient to provide salary and benefits for the recipient from annual earnings, and such support staff, travel and other expenses as this may permit in perpetuity.