Trust Administration

Trust Administration’s role is to provide expert accounting and management support to all of Penn’s schools and centers regarding their restricted endowment funds (40XXXX, 46XXXX), restricted operating term gift funds (60XXXX, 62XXXX), unrestricted operating gift funds (63XXXX), and capital project gift funds (65XXXX).  A request to create a capital project gift fund should include a BEN Financials capital project specific program number in order to allow for the accurate accounting of the capital project expenditures.  Trust Administration is also responsible for the accounting and administrative functions relating to the University’s non-trusteed external perpetual trusts (48XXXX) and charitable remainder trusts (49XXXX), along with the University’s gift planning contracts where the University serves as trustee.  Delivering high quality customer service to all of Penn’s schools and centers to ensure that endowment income and gift revenue from restricted donor gifts adheres to donor intent and applicable laws is one of Trust Administration’s top priorities.  Trust Administration also preserves all original donor documentation for all restricted endowment and gift funds.  Questions regarding the appropriate donor intended use of these funds should be directed to Trust Administration for an accurate and detailed explanation.

 

Trust Administration is also responsible for the creation of all new funds into the University’s accounting system (BEN Financials).  To request the establishment of a new fund, the following paperwork should be submitted to Trust Administration.  A BEN Financials New Fund Request Form must be completed and signed by the school or center Senior Business Administrator and an ATLAS New Designation Request Form must also be completed and signed by a Development Office staff member.  Donor supporting documentation (gift agreement, donor letter/memo etc.) must also accompany a request for all new funds.  Quasi-endowment funds (aka funds functioning as endowments or unrestricted endowments) created with unrestricted departmental surplus revenue do not need donor supporting documentation.  Quasi endowments also follow the 40XXXX and 46XXXX fund number series.  All original donor documentation, including but not limited to, signed gift agreements and donor letters/memos, should also be delivered to Trust Administration for the permanent preservation of these documents.

 

The following is a brief description of each fund type.

Endowment Funds (40XXXX, 46XXXX): There are 3 types of endowment funds.  True or "permanent” endowments are established with donor-restricted gifts or bequests to provide a permanent source of income.  A term endowment commonly provides support during a specific time period or up until an event occurrence.  A quasi- endowment (i.e. funds functioning as endowment or unrestricted endowment) is an endowment that generates income but is generally not donor restricted.  This type of fund is typically created with unrestricted departmental surplus revenue.

Restricted Operating Term Gift Funds (60XXXX, 62XXXX): Established to receive gifts from a donor or donors and the gifts are restricted to a specific operating purpose.

Unrestricted Operating Gift Funds (63XXXX): Established to receive gifts from a donor or donors and the gifts are unrestricted to a specific operating purpose or department.

Capital Project Gift Funds (65XXXX): Established to receive gifts from a donor or donors and the gifts are restricted to a capital project, such as the construction of a new building or the renovation of existing building space.