UCLA Policy 193 : Allocation and Reallocation of Gifts
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Issuing Officer: Chancellor
Responsible Office: Development - Look Up Contact Person
Effective Date: July 28, 2007
Revision History: APP History

I. REFERENCES

  1. UC Delegation of Authority 2169, Allocation and Reallocation of Gifts (including Administrative Guidelines, dated September 11, 2006;

  2. Deans, Directors Memo from Chancellor Young on the creation of funds functioning as endowments, dated March 9, 1987;

  3. UC Development Policy Manual.

II. BACKGROUND AND PURPOSE

The University receives Gifts, particularly by Bequest, without the donor having designated one or more of the following required components for administering the fund: 1) the benefiting campus and/or unit; 2) the purpose; and 3) the fund type. In such cases, the Allocation has been made either by the President or the Chancellor according to specific Allocation levels.

This Policy promulgates local Allocation instructions, thereby obviating the need for individual Gift Allocation Actions by the Chancellor, unless Presidential authorization is required, or an alternative Allocation Action is requested. This policy also applies to any Reallocation of a Gift.

III. DEFINITIONS

Allocation: Designating the terms and conditions of a Gift that have not been specified by the donor, such as the benefiting of a campus and/or unit, purpose, and/or fund type (e.g., Endowment, Current Use Fund, etc.).

Bequest (from estates): A Gift given through an individual’s will or through a trust created during his or her lifetime that does not become irrevocable until the donor’s death.

Current Use Fund: A Gift fund or private grant contributed by a donor under whose terms the University may expend all or a portion of the assets at its discretion for the specified purposes.

Endowment: Funds that are kept intact and invested. The earnings or a portion thereof are applied to purposes the donor designates.

Fund Functioning as an Endowment, or Quasi-Endowment: A fund that is similar to an Endowment except that if circumstances change significantly, or as stipulated by the donor, appropriate administrative action may reverse the decision to hold the principal inviolate, thereby allowing for its expenditure.

(Note: Fund Functioning as an Endowment is the preferred term of The Regents; Quasi-Endowment is the preferred term of The UCLA Foundation.)

Gift: For purposes of this policy, a generic term that includes various types of assets including cash, securities, real property, tangible personal property or other non-monetary assets. In general, funds are classified as a Gift if the following characteristics are present: Disinterested generosity; donor does not impose contractual requirements; funds are awarded irrevocably.

Reallocation: Subsequent to an Allocation, the administrative designation of fund terms that have not been specified by a donor, such as the benefiting of a campus unit, purpose, or fund type.

IV. STATEMENT

A. Gifts to The Regents for the UCLA Campus

The following Allocation Actions will be automatically implemented by Finance & Information Management according to the criteria below:

1. Gifts of $1,000,000 or Less

Did the donor specify:   

Allocation Action

Dept/Unit

Purpose

Fund Type

Gift of $250,000 or less

Gift greater than $250,000
but not more than $1,000,000

a.

No

No

No

Chancellor's Campus Needs Fund to be expended at Chancellor's discretion. Expended at Chancellor's discretion. Establish a Fund Functioning as an Endowment.
b.

No

No

Yes

Chancellor's Campus Needs Fund to be expended at Chancellor's discretion. Expended at Chancellor's discretion.
c.*

No

Yes

No

Assign to campus unit consistent with specified prupose (but also see Special Rule below). Dean with authority over the unit may determine the fund type. Assign to campus unit consistent with specified purpose. Establish Fund Functioning as an Endowment.
d.*

No

Yes

Yes

Assign to campus unit consistent with specified purpose (but also see Special Rule below). Assign to campus unit consistent with specified purpose.
e.

Yes

No

No

Unrestricted to the unit. Dean with authority over the unit may determine the fund type. Unrestricted to the unit. Establish a Fund Functioning as an Endowment.
f.

Yes

No

Yes

Unrestricted to the unit. Unrestricted to the unit.
g.

Yes

Yes

No

Dean with authority over the unit may determine the fund type. Establish a Fund Functioning as an Endowment.
h.

Yes

Yes

Yes

No allocation required. No allocation required.

*Special Rule for Situations c. and d., above

In those cases where no department is specified but a purpose is specified, and there is more than one campus unit with programs consistent with the specified purpose, the Associate Vice Chancellor, External Affairs Development (in consultation with either the Executive Vice Chancellor/Provost or the Vice Chancellor, Medical Sciences if the purpose is related to the health sciences) shall prepare a recommendation for division of the Allocation among the affected units for approval by the Chancellor or Executive Vice Chancellor/Provost.

2. Gifts Greater than $1,000,000 but Not More than $5,000,000

Based upon a recommendation from the Vice Chancellor, External Affairs, the Chancellor must approve any Allocation Action for any Gift more than $1,000,000 up to and including $5,000,000. The recommendation for the Allocation Action will generally be made in consultation with the Vice Chancellor, Dean or Director of the specified unit, or the Vice Chancellor, External Affairs if no unit is specified.

3. Gifts Greater than $5,000,000

Based upon a recommendation from the Chancellor, the UC President must approve any Allocation Action. The recommendation for the Allocation Action will generally be made in consultation with the Vice Chancellor, Dean or Director of the specified unit, or the Vice Chancellor, External Affairs if no unit is specified.

4. Alternative Recommendations

The Vice Chancellor, Dean or Director of the benefiting campus unit (or the Vice Chancellor, External Affairs, if no unit is specified) may petition the Chancellor in writing for an Allocation Action different from that in Section IV.A.1, above, if there is a compelling reason or immediate need for all or a portion of the Gift. If the Gift is more than $250,000, an alternative recommendation to designate the fund type as a Current Use Fund is subject to the approvals as described in Section IV.A.2, above.

5. Gifts Greater than $50,000 for Current Use

For any Gift over $50,000 allocated for current use (whether due to the automatic Allocation Action under Section IV.A.1 or not), the head of the benefiting unit must prepare a written justification for the preference for current use over future use. This written statement must be included as part of the official Gift record.

B. Gifts to The UCLA Foundation

The following Allocation Actions will be automatically implemented by the Assistant Vice-Chancellor, Finance & Information Management, acting as the Vice President Finance & Treasurer of The UCLA Foundation, according to the criteria below:

1. Gifts of $1,000,000 or Less

Did the donor specify:

Allocation Action

Dept/Unit

Purpose

Fund Type

Gift of $250,000 or less

Gift greater than $250,000
but not more than $1,000,000

a.

No

No

No

General Fund/Annual Fund to be expended at Chancellor's discretion. Expended at Chancellor's discretion. Establish a Quasi-Endowment Fund.
b.

No

No

Yes

General Fund/Annual Fund to be expended at Chancellor's discretion. Expended at Chancellor's discretion.
c.*

No

Yes

No

Assign to campus unit consistent with specified purpose (but also see Special Rule below). Dean with authority over the Unit may determine the fund type. Assign to campus unit consistent with specified purpose. Establish a Quasi-Endowment Fund.
d.*

No

Yes

Yes

Assign to campus unit consistent with specified purpose (but also see Special Rule below). Assign to campus unit consistent with specified purpose.
e.

Yes

No

No

Unrestricted to the unit. Dean with authority over the unit may determine the fund type. Unrestricted to the unit. Establish a Quasi-Endowment Fund.
f.

Yes

No

Yes

Unrestricted to the unit. Unrestricted to the unit.
g.

Yes

Yes

No

Dean with authority over the unit may determine the fund type. Establish a Quasi-Endowment Fund.
h.

Yes

Yes

Yes

No allocation required. No allocation required.

*Special Rule for Situations c. and d., above

In those cases where no department is specified but a purpose is specified, and there is more than one campus unit with programs consistent with the specified purpose, the Associate Vice Chancellor, External Affairs Development, acting as the Vice President, Development of The UCLA Foundation (in consultation with either the Executive Vice Chancellor/Provost or the Vice Chancellor, Medical Sciences if the purpose is related to the health sciences) shall prepare a recommendation for division of the Allocation among the affected units for approval by the Chancellor or Vice Chancellor, External Affairs (acting as the Executive Vice President of The UCLA Foundation).

2. Gifts Greater than $1,000,000 but Not More than $5,000,000

Based upon a recommendation from the Vice Chancellor, External Affairs (acting as the Executive Vice President of The UCLA Foundation), the Chancellor must approve any Allocation Action for any Gift greater than $1,000,000 up to and including $5,000,000. The recommendation for the Allocation Action will generally be made in consultation with the Vice Chancellor, Dean, or Director of the specified unit, or the Vice Chancellor, External Affairs if no unit is specified.

3. Gifts Greater than $5,000,000

Based upon a recommendation from the Chancellor, the UC President must approve any Allocation Action. The recommendation for the Allocation Action will generally be made in consultation with the Vice Chancellor, Dean or Director of the specified unit, or the Vice Chancellor, External Affairs if no unit is specified.

4. Alternative Recommendations

The Vice Chancellor, Dean, or Director of the benefiting campus unit, or the Associate Vice Chancellor, External Affairs Development (acting as the Vice President, Development of The UCLA Foundation, if no unit is specified), may petition the Vice Chancellor, External Affairs (acting as the Executive Vice President of The UCLA Foundation) in writing for an Allocation Action different from that in Section IV.B.1, above, if there is a compelling reason or immediate need for all or a portion of the Gift. If the Gift is more than $250,000, an alternative recommendation to designate the fund type as a Current Use Fund is subject to the approvals in Section IV.B.2, above.

5. Gifts Greater than $50,000 for Current Use

For any Gift over $50,000 allocated for current use (whether due to the automatic Allocation Action under Section IV.B.1 or not), the head of the benefiting unit must prepare a written justification for the preference for current use over future use. This written statement must be included as part of the official Gift record.

V. ATTACHMENT

A. UC Delegation of Authority 2169, Allocation and Reallocation of Gifts (including Administrative Guidelines), dated 9/11/2006.

 

 

 

ISSUING OFFICER
/s/ Abrams, Norman


Chancellor