University of Vermont

University Financial Services


Endowment Accounting

Endowment Funds: funds whose principal is nonexpendable and is invested for the purpose of producing income. 

  • Unrestricted Endowment Income – Fund 100 - Income from an endowment that is not restricted by the donor and can be spent on any institutional need.
  • Quasi Endowment – Fund 210 (unrestricted) & 350 (restricted) - Funds that are treated like an endowment, i.e. principal is invested and only return on the investments can be spent. The source of these funds can be general funds (unrestricted) or restricted gifts and bequests that were not designated for an endowment by the donor but the administration decided to treat them like an endowment.
  • Restricted Endowment Income – Funds 320 and 321 - Income from an endowment that can only be spent for purposes stipulated by the donor. 
  • Term Endowment – Fund 352 (restricted) - Gifts that are treated like an endowment for a specified time.  At the end of that time, if the fund reaches its goal, it becomes a true endowment. If it doesn’t, it reverts to spendable restricted gifts (fund 310).
  • True Endowment – Fund 400 - A gift that is invested in perpetuity. Only the return on the investment can be spent.

Last modified November 12 2018 02:36 PM