Home FRA Endowment & Investment Accounting

About Endowment Funds

Endowment funds are gifts to the university to support the students, faculty and overall mission. Typically, they are designed to be sustainable over the long-term by investing the principal and honoring the donor’s intent by use of the income. The way the funds are spent is dependent on the stipulations of the signed endowment agreement. These funds play a crucial role in an institution’s financial strength, providing consistent revenue to support both current and future activities.

Endowment Income Projection
Endowment Income Projection
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Endowment Definitions
Endowment Definitions
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  • The University of Utah has more than 1,800 endowed funds. In order to effectively manage these funds over many years, the university combines the assets into an endowment pool, with each endowment fund owning shares in the pool. The university strives to meet two goals when managing the endowment pool. First, to provide a steady stream of income to help support the current endeavors of the institution. Second, to maintain the purchasing power of the endowment funds to ensure that the same endeavors will continue to be supported in perpetuity. The objective is to balance these distinct goals over a long-term horizon

  • 12030: Long Term/Endowment Pool – This account code is used to record the investment in individual endowments. This denotes book value or historical dollar value of the endowment.

    12031: Long-Term/Endowment Pool Market Value Adjust – This account code is used to record the cumulative unrealized gain or loss on investment and the adjustments thereto, in individual endowments debits for gains and credits for losses.
    The net total recorded to account codes 12030 and 12031 in individual endowments reflects the total market value of the investment in the endowment pool.

    49033: Endowment Pool Unrealized Gains or Losses – This account code is used for the other side of the entry to record adjustments to cumulative unrealized gain or loss on investment in individual endowments as described under asset code 12031.

    49032: Endowment Pool Endowment Income Distribution – This account code is used to distribute income to endowment participants in the endowment pool.


Creating a True Endowment
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Creating a Quasi Endowment
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Endowment Pool Performance Update
Investment Management Office
Endowment Pool Investment Guidelines
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University Endowed Chair Endowments
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Endowment FAQs

  • Distributions occur quarterly, specifically in the last month of each financial quarter. You can expect to receive distributions in September, December, March and June.

  • To check the total value of your endowment please follow these steps:

    1. Access your management reports
    2. In the report field, use the drop-down arrow and select Balance Sheet.
    3. Look for the following components:
      • Principal Amount: This corresponds to the description Invest-LT Endowment Pool
      • Market Value: This corresponds to the description EP Market Value Adjustment
    4. The current value of your endowment is the sum of these two amounts.
  • The quarterly distribution will be posted at the end of each quarter.  To locate it:

    1. Access your management reports
    2. Look for the report titled Summary of Rev/Exp.
    3. Within this report, you will find an account labeled “EP Endow Interest & Dividends.”
    4. The distribution will either be reflected in your expendable activity or in the endowment activity.
  • To create a new endowment activity, follow these steps:

    1. Complete the activity setup request form.
    2. Submit two activity setup requests: one for the endowment and one for the expendable portion.
    3. Include the gift agreement as backup documentation for the endowment.
    4. To create a new quasi endowment, you will also need to submit the Quasi Endowment Setup form.
    5. Links
      1. Activity Setup Request Form - Activity/Project Set-Up Request Form | Financial Services (
      2. Quasi Endowment - Quasi-Endowment.pdf (
  • To assist in calculating your annual distribution, consider using the following calculators to estimate your yearly distribution.  These tools can help you plan and allocate your resources effectively.

  • Market value adjustments occur in the month following the end of a quarter close. For instance, if December 31 is the typical quarter end, the market value adjustment for that quarter will be posted to your management reports no later than January 31.

  • Endowment

    • Purpose: Endowments are long-term investments funds established to provide sustained support for specific purposes, like scholarships, faculty positions or research.
    • Source: They are funded through donations or gifts from individuals, corporations or foundations.
    • Usage: Endowment funds generate income through investments and only a portion of the income (usually based on a spending policy) is withdrawn. The principal remains intact.

    Expendable Activity

    • Purpose: Expendable activities refer to funds that are available for immediate use. These funds can be spent to fulfill the purpose of the endowment.
    • Source: Income from the endowment pool.
    • Usage: Expendable funds support the purpose of the endowment. This can include items like salaries, supplies, research and scholarships.
  • A true endowment consists of funds donated by a donor with restriction that the resources be used to create a permanent source of support for the organization.

    • Principal: The principal amount is held in perpetuity, meaning it cannot be spent.
    • Donor Intent: The donor specifies how the income generated from the endowment should be used. Examples include scholarships or faculty positions funded by a true endowment.

    A quasi endowment is also known as board designated endowments. These funds function as endowments established by the university and not by specific donor intent.

    • Principal and Income: Both the principal and income may be utilized at the discretion of the department.
    • Flexibility: Unlike true endowments, the board can end restrictions for any reason and withdraw funds after five years. Examples include scholarships, capital improvements and program expansion.
Investment Management Office FAQs
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University Advancement FAQs
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