Policy Section
Endowment
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.
Procedures
N/A
Revision Log
6/10/19 - Updated responsible office listing.
10/1/18 - Updated executive sponsor listing.