Departmental Overhead Charges to Gift and Endowment Funds

Policy Section
Endowment

Last Updated
June 10, 2019
Responsible Executive
Provost
Vice President for Finance and Treasurer
Vice President for Advancement
Responsible Office
Office of the Provost, Academic Budget and Planning
Office of Finance and Treasury, Gift and Endowment Accounting
Office of Advancement, Alumni and Donor Relations
Contacts
Kenneth Molinaro
Controller
(609) 258-8576

I. Summary

In general, indirect or overhead charges are only allowed under University-wide policies and procedures applied consistently across all departments, such as the Facilities & Administrative rate on sponsored research awards, the Endowment Services Charge, and the Infrastructure and Administrative Charge (IAC) applied to endowment payout and external trust income.

This policy establishes that individual departments may not apply their own internal taxes, overhead, or other indirect cost charges against term gift funds, endowment funds, or external trust balances or against endowment fund payout or external trust income.   By ensuring consistent practices across the University, the policy strengthens our stewardship of donor-restricted funds.

II. Who is Affected by this Policy

This policy applies to all academic and administrative departments.

III. Definitions

Departmental “internal taxes, overhead or other indirect cost charges,” and similar terms, refer to internal charges to or deductions from (a) balances of term gift funds (B funds), (b) balances of endowment funds and external trusts (E and F funds) or (c) payout or income of endowment funds and external trusts (E and F funds), that are not implemented under University-wide policies and procedures applied consistently across all departments and that are set aside in a departmental discretionary fund used for general departmental purposes.

“Department” means any organization, department, sub-department, program, or other entity within Princeton University.

IV. Policy

No internal taxes, overhead, or other indirect cost charges may be applied by individual departments against term gift funds, endowment funds, or external trust balances or against endowment fund payout or external trust income.

V. Procedures

N/A

Revision Log

6/10/19 - Updated responsible office listing.

10/1/18 - Updated executive sponsor listing.