1. Fiscal Officers Development Series February 12, 2009 John T. Keith, Assistant Vice President, Office of Gift Planning Sheila N. Decker, Assistant Vice President Administration

2. Our Mission Fundraising Investments Administration

3. Fundraising IUF serves as the central fundraising organization for the University

4. Fundraising Support Services –Research and Prospect Management –Annual Giving –Giving Planning –Donor Relations –Major Gifts

5. Fundraising Fundraising priorities rest with: –University President –Campus Chancellors –Deans Partnership between schools and IUF exists to support University needs

6. Fundraising 1M Campaign Feasibility Study –IUF provides study as a service

7. Investments Current size of IUF pooled long term investments just over $1.1 billion All but a very small fraction are managed by outside advisors and partnerships selected and approved by Investment Committee of IUF Board

8. Investments Medical School and KSOB have largest endowment holdings Ongoing process of diversifying portfolio Building for long-term to match the time horizon of the assets

9. Investments Financial markets are currently in state of turmoil IUF portfolio is not immune as assets of all types were hit Though values are down the spending policy bolsters payout

10. ADMINISTRATION Account Administration Services –Account Maintenance –Gift Agreements Gift Administration –Deposits –Recording & receipting of charitable gifts –Solicitation material review Accounts Payable –Disbursements –Transfers between Foundation accounts

11. IU vs. IUF Policies Correlation between IU and IUF policies? Why is it important to consider both?

12. Gifts vs. Other Income Depositing of Revenue for the Sale of Goods and Services at the IU Foundation: http://www.indiana.edu/~vpcfo/policies/accountin g/i-460.html Deposits at IU Foundation must meet IRS definition (Publication 526 Charitable Contributions) of a charitable gift. Non-gift funds must be deposited into an IU account.

13. Assistance from Fiscal Officers Understand and communicate IUF policy and procedures Proactively seek training for new or existing staff

14. Understanding IUF accounts EXPENDABLE –the donor has indicated that both their gift and any associated investment earnings received may be used to support the purposes of the gift ENDOWMENT –Lasting gift to the University by donor –Only earnings can be spent –Only donor can restrict funds into perpetuity

15. Understanding IUF accounts Account Structure XX-UNIT-XX-X –XX Fund Type –Expendable vs. Endowment –UNIT – code specific to your unit(s) –XX Consecutive numbering – identifies number of accounts in that fund type –X -- Check digit assigned by system

16. Understanding IUF accounts FUND TYPES 32 Operating Account 38 Gift Account (quasi-endowment) 37 Endowment Account

17. Understanding IUF accounts 32 Operating Accounts –General operating accounts –Annually funded –Current expenses –Income side of account only –$1,000 minimum account balance required

18. Understanding IUF accounts 38 Gift Accounts (quasi-endowment) –Gift accounts –Income & principal side of account –Long term investment opportunity –Income and principal are expendable –$1,000 minimum account balance required

19. Understanding IUF accounts 37 Endowment Accounts –Lasting gift to the University by donor –Income & principal side of account –Only earnings can be spent –Only donor can restrict funds into perpetuity –$10,000 minimum account balance required

20. Understanding IUF accounts Income vs. Principal –37 and 38 accounts have both an income and principal side –Earnings are placed on the income side –Disbursements are paid out of the income side –Principal side offers auto sweep into pooled long term –37 accounts~ principal endowed –38 accounts~ principal CAN be spent

21. Understanding IUF accounts How can funds be used? –Must adhere to donor intent –Refer to Gift Agreement

22. Understanding IUF accounts Gift Agreement What is it? A legal document outlining how the gift will be used, responsibilities of the Foundation and school or department, as well as, a means to provide for alternate use of funds if needed.

23. Understanding IUF accounts Gift Agreement Why do we use them? –Documents donor intent. –Can be used to outline the donor’s commitment and their affiliation with the University.

24. Understanding IUF accounts Account Manager & Supervisor Responsibilities: Oversee account activity –Review monthly account statements Authorize transaction –Disbursements –Deposits –Transfers Ensure compliance with donor intent

25. What you can do to help… regarding disbursements Provide alternate signers for accounts Provide as much detail as possible –Specify business purpose/benefit to IU –Provide detailed scholarship information Student identification number of recipient Undergraduate vs. graduate Identify fiscal year expense occurred

26. What you can do to help… regarding gift deposits Place funds in appropriate accounts –Serve as liaison with development officers in regard to placement of funds. Recognize when new accounts are to be opened –Ex: Gifts are received prior to establishing new account. Do not temporarily place in existing account.

27. Access to IUF Information IQ: The IU Foundation Portal –All affinity/benefactor/ETA-web users automatically given access –Access available to all with need to access services –Available through OneStart

28. More on IQ –comprehensive site for fiscal and development officers, faculty, staff, deans, chancellors –news and updates –reports, data, queries –rollout policy/procedural changes –view Foundation account information –development information, stats and tools –ongoing development – feedback welcome

30. IUF Account Information ETA Web –Account information balances transaction information reports –Controlled access for account managers & supervisors delegates primary development officer

31. Current Initiatives Imaging E-docs –Reimbursement to IU accounts Lockbox deposits Scholarship administration Donor/Alumni database replacement