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Endowment Guidelines

Find endowment accounting guidelines and procedures.

Overview

  • Endowments are donations of money or property to the University. 
  • To preserve the purchasing power of endowment funds and at the same time support the purposes of the endowments, endowment contributions are capitalized and invested, with a spending amount (calculated using a spending rate applied to the moving average of the preceding three December 31 market values) made available for use during the year.
  • The sum of the capital account and the stabilization account makes up the market value of the endowment funds. 
  • Current spending rate as established by the Board of Governors is at 3.5%.
  • Deficits are not allowed in endowment accounts per Policy​ 113. Any deficits occurring will need to be offset by the end of the fiscal year.

Endowment accounts under the University are structured with three components:

  1. Capital account which represents initial capital contribution and any succeeding donations or capitalizations of income and inflation into the account.  Funds held in the capital account are held in perpetuity.
  2. Spending account which represents amount available for spending in accordance with the endowment’s purpose or terms of reference (ToR).  Amount available includes current year’s spending allocation plus any carry-forward spending amounts from prior years.
  3. Stabilization account which tracks the health of the endowment. This account houses the changes in the market value of the endowment due to inflation from its original capital value, any fees from investment managers, other fees like overhead/internal charges, and the amount that get transferred as the spending amount. 

Endowment Accounting

Visit the UBC Finance website for more information on Endowme​nt Accounting.