Operates Like Interest-Bearing Checking Account

Operates Like Interest-Bearing Checking Account

Demand / Quasi / Endowment
UMF
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  • No dollar minimum
  • Operates like interest-bearing checking account
  • Guaranteed interest rate determined by Board
  • No market risk
  • Invested in short-term pool
  • 3% admin fee assessed on each gift (See SOP Supplemental – Demand Fund Administrative Fee Final Materials)
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  • $10k minimum
  • Spending is limited to 20% of prior year’s ending cash balance (includes available amount)
  • Invested in long-term pool
  • Investment earnings (losses) based on actual pool performance
  • Annual administrative fee of 1.5%
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  • $25k minimum
  • Gift/principal may not be spent
  • Invested in long-term pool
  • Payout is based on UMF spending policy
  • Principal investment earnings (losses) based on actual pool performance
  • Annual administrative fee is 1%
  • Unspent payout (available funds) remains invested in long term pool
  • Reinvestment of available funds to principal is permitted on annual basis

TIP
Temporary Investment Fund / GIP
Group Income Pool / CEF
Consolidated Endowment Fund / PUF
Permanent University Fund / SIF
Separately Invested Funds
UMN
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  • Compromised of University’s daily working capital
  • Internally managed
  • Daily cash balances invested by Office of Investments and Banking
  • Assets required for short-term use are invested in TIP and used to fund daily banking needs
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  • $25k minimum initial deposit
  • $10k minimum subsequent deposits
  • Must have positive chartstring balance
  • Requires Dean-level approval
  • No true endowments or quasi-restricted endowments
  • 45-day advanced notice to withdraw using form UM 1638
See for more information /
  • Primary investment portfolio for all public and private gifts to the University of Minnesota
  • Distribution rate of 5% of 3-year trailing average of market value
  • See add’l information below
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  • Public endowment established with income from sources such as state iron ore taxes, royalties, and federal land grants
  • Has two parts-a University part and a foundation part
  • Each withdrawal from a PUF is matched to some degree by a foundation. The contribution amount by a foundation to a PUF withdrawal is determined by the foundation.
  • PUF is part of the CEF pool.
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  • Only established with a documented request from a donor for separate investment

True Endowment / Quasi Endowment / Term Endowment / Life Income Fund Endowment
CEF
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  • Must remain permanently intact, principal may not be spent
  • Reinvestments back into true endowment are not allowed.
  • Withdrawals from true endowment not permitted
  • Earnings can only be distributed to quasi or EFS chartstring, they cannot be reinvested back into true endowment.
  • $50,000 minimum beginning investment
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  • Remain an endowment based on management prerogatives; principal may be spent for purposes of the gift.
  • Quasi earnings can be reinvested back into quasi or distributed to EFS chartstring.
  • Departments can process withdrawals from quasi with no dollar amount limit
  • $25,000 minimum beginning investment
  • You can withdraw up to the full value
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  • Remains an endowment for a specified period of time.
  • $50,000 minimum beginning investment
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  • Remains an endowment for the life of the donor. All or a portion of the income is paid to a life income beneficiary for the remainder of the donor's life.
  • $50,000 minimum beginning investment

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