Departmental Overhead Charges to Gift and Endowment Funds

EFFECTIVE DATE:  |LAST UPDATED: July 11, 2017 | Policy Section: gift-administration

Responsible Executives

Deborah A. Prentice, Provost

Carolyn N. Ainslie, Vice President for Finance and Treasurer

Kevin J. Heaney, Vice President for Advancement

Responsible Offices

Office of the Provost, Academic Budget and Planning

Office of Finance and Treasury, Asset Administration

Office of Advancement, Alumni and Donor Relations

Contact

Matthew Kent, Associate Treasurer, mattk@princeton.edu or (609) 258-6452

I. Policy StatementBACK TO TOP

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 PolicyBACK TO TOP

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. PolicyBACK TO TOP

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 BACK TO TOP

VI. Forms BACK TO TOP

VII. Contact Roles and Responsibilities BACK TO TOP

VIII. Update Log BACK TO TOP


 

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