New Fund Creation and Administration

Policy Number: 7.65
Effective Date: February 20, 2023
Revision History: May 26, 2016; March 14, 2016; May 29, 2014
Policy Contact: Executive Director Advancement Services

I. Purpose and Policy Statement

The purpose of this policy is to establish guidelines for creating new funds to be held by the GGC Foundation. Occasionally, a donor may wish to contribute to a program or project for which there is no dedicated restricted fund. In many cases, the donor may be advised to contribute to a restricted fund designated generally for the school or unit under which the chosen program or project is managed, with a stated preference as to how the gift is to be used. The following policy outlines the circumstances under which a new restricted fund may be created.

II. Scope

This policy applies to donors, alumni, potential donors, and all GGC faculty, staff, and students.

III. Definitions

Restricted Fund: A fund that is to be used for a limited set of purposes. Examples include scholarship funds reserved for students in a particular school or major, or a fund designated to support a specific program or project.

IV. Roles and Responsibilities

The GGC Foundation receives, holds and manages monies donated by private non-college entities including individuals, corporations, and private foundations. Donors may request that their gifts be used for specific purposes at the College. Advancement works with donors and College personnel to ensure any restrictions placed on a gift are aligned with the College’s mission and institutional priorities.

V. Fund purpose

In general, the fund purpose must be aligned with one or more stated institutional philanthropic priorities. The fund purpose should not limit the use of funds more than necessary to support the program or project. Fund agreements are to include a statement regarding how the funds will be directed should the stated purpose become infeasible or if the program or project ceases to exist.

VI. Fund Thresholds

1. Expendable Restricted Funds
   1. The donor(s) pledge gifts of at least $5,000 annually for five years
   2. Advancement has a reasonable expectation that $5,000 in collective gifts will be raised annually from the general public in support of the fund’s purpose
   3. There is a documented history of raising at least $5,000 annually in support of the fund’s purpose
   4. A donor pledges a single gift large enough to warrant a designated fund, as approved by Advancement.
2. Spend-down Funds
   1. The donor(s) guarantee gifts of at least $25,000 over a maximum of 5 years
   2. Advancement has a reasonable expectation that $25,000 in collective gifts will be raised within 5 years from the general public in support of the fund’s purpose
   3. A donor pledges a single gift large enough to warrant a designated fund, as approved by Development
3. Endowed Funds
   1. A single gift of $50,000 or more
   2. Development has a reasonable expectation that $50,000 will be raised in support of the fund’s purpose, within 5 years of the date of the first gift.

VII.Administration

1. Gifts that arrive with stated purposes that do not clearly belong in an existing fund must be deposited into a temporarily restricted account and held until the appropriate fund has been identified or created.
2. A new fund creation form (ADV 1.0) must be completed and approved prior to receiving donations into the fund.
3. Each fund must have a designated budget manager and a clear disbursement process. For most programs and projects, this budget manager will be the dean, faculty member, or unit director who oversees the program or project.
4. If the faculty / staff member who oversees the program funded is also a primary or major donor to the fund, their direct supervisor may be designated as the budget manager.
5. All new fund requests must be approved by the designated budget manager, the budget manager’s direct supervisor, and Advancement.
6. The GGC Foundation will provide sufficient training to faculty and staff regarding how to access their foundation funds and will issue regular reports to budget managers that include the fund name, purpose, and balance available.

VIII. Related Regulations, Statutes, Policies, and Procedures

7.61 Fundraising  
GGC Foundation Policy 2.1 Gift Acceptance
GGC Foundation Policy 4.1 Spending
GGC Foundation Policy 4.3 Fund Disbursement