Handbook of Business Procedures
Nov. 30, 2009
March 25, 2011
Financial Accounting Services
2.2.6. GIFT FUNDS - 30-ACCOUNTS
Gift funds (30-accounts) are used to record gifts and related expenditures received from donors that do not exhibit characteristics of sponsored projects. All gifts should be entered in VIP Direct and a solicit code or endowment tracking code should be included when appropriate. Supporting documentation and deposits should then be delivered to The University of Texas at Austin’s Development Gift and Data Services (G&DS). For more information, contact the University Development Office.
There are three distinct types of 30-accounts:
Unrestricted nonendowed gift funds may be deposited for use in a Various Donors/Various Purposes (VD/VP) 30-account. Restricted nonendowed gifts, such as for academic support, are deposited into other nonendowed 30-accounts within a college, school, or unit (CSU). Expenditures are allowed.
- Endowment Holding
Gifts intended for the creation of new endowments should be entered in the VIP system with the endowment tracking code, and a solicit code should be included when appropriate. G&DS will then deposit the gift in the CSU’s endowment holding 30-account for future transfer to the endowment investment 57-account. Deadlines for quarterly buy in to the Long Term Fund will be provided by the Development Office. No expenditures are allowed.
- Endowment Distribution and Expenditures
This account receives quarterly investment distributions from the endowment to be used for expenditures. Each 30-account is linked to a specific 57-account. Expenditures from endowment distributions 30-accounts are restricted by the type of endowment and by the donor criteria (i.e., only appropriate subaccounts are allowed). Generally, this type of 30-account may not receive additional gift funds, unless gifted by the endowment donor for the purpose of immediate expenditure. For more information about endowments, see Development Guide: Endowments.
Development Gift and Data Services (G&DS) is the official repository for all charitable giving to the university. G&DS processes gifts and provides receipts for all donations to the university in accordance with the policies of The University of Texas at Austin and The University of Texas System, which comply with Internal Revenue Service (IRS) regulations.
- General or Various Donors/Various Purposes Accounts
General or Various Donors/Various Purposes (VD/VP) accounts are for nonendowed gifts.
- Endowment Holding Accounts
Endowment holding accounts are for gifts pending endowment establishment.
- Endowment Distribution and Expenditure Accounts
Endowment distribution and expenditure accounts are for receipt of distributions from endowment investment accounts and generally do not accept direct gifts, unless an exception is made by the donor for immediate expenditure.
- Endowment Tracking Code
An endowment tracking code is used on the VIP Direct Gift Entry Web page to track gifts to endowments so they can be differentiated from other kinds of solicitations and transferred to the appropriate 57-account when it is created.
- Solicit Code
A solicit code is used on the VIP Direct Gift Entry Web page to track gifts that were solicited from donors.
- G&DS must be notified of all transfers in order to update the VIP system.
- Transfers between general gift funds are allowed.
- Transfers may be made from a general 30-account or an endowment holding account into a 57-account for endowment investment.
- Unspent endowment distributions may be transferred for reinvestment to the corresponding 57-account.
- Expenditures must meet donor restrictions.
- Purchasing and payment procedures of The University of Texas at Austin must be followed.
- Entertainment expenses may be allowed if the Entertainment and Official Occasions Expenditure Policy is followed.
- Individual subscriptions, club memberships, and professional dues are allowed, when benefit to the university can be shown.