Fund Group Structure
Effective Date: 01/01/2004
Last Updated: 02/12/2019
The University of Georgia Foundation accounting system is designed to identify and provide the necessary accounting and reporting information applicable to each fund group. There are three separate and distinct fund groups in the Foundation accounting system.
- Unrestricted funding is designed to support two types of accounts.
- The operating fund represents the development and alumni relations operating arm of the University of Georgia and the University of Georgia Foundation. This group is budgeted and funded by gifts not restricted in their use and other revenue sources designed to support the general operations of the University of Georgia Foundation.
- The academic discretionary funds are funded by the University of Georgia Foundation operating fund for scholarships, special projects, and other academic support purposes. Each project is budgeted separately.
- The restricted fund group is funded primarily by gifts that have been restricted by the donors as to the purpose for which the funds may be used. There are four classifications of funds in this group.
- Endowed funds are the perpetual funds held in trust by the Foundation. Only the investment return can be expended for purposes specified in the respective trust agreements. These funds are subject to internal support fees. This group of funds is invested for long investment performance (long-term portfolio), and, as such, is at risk.
- The non-endowed funds consist of funds which may be expended but only for purposes specified in respective trust agreements. Funds in this group do not receive short-term earnings and are not assessed an internal support fee.
- The quasi-funds consist of funds that may expend the principal or retain the principal of these gifts as though they are endowment assets. Amounts within each fund are invested in the long-term portfolio and therefore are subject to investment risk. These funds are assessed an internal support fee.
The deferred fund group refers to those gifts that involve estates, trusts, or life insurance policies that are not yet realized. Once realized, they generally establish a new fund based on the deferred giving arrangement. This new fund could be an unrestricted or restricted fund, as described above.
Each new fund that is established in the Foundation requires a fund agreement (see Policy 5.3). The type of fund agreement depends on the purpose of the fund and the total amount anticipated. If the purpose of the fund is for it to continue into perpetuity, the fund will be established as an endowment (see Policy 5.4 below).