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UCSD CAMPUS NOTICE University of California, San Diego OFFICE OF THE VICE CHANCELLOR RESOURCE MANAGEMENT AND PLANNING June 11, 1998 UCSD FACULTY AND MSOs SUBJECT: Gift and Private Grant Funds - Earnings return changes A top priority for this growing campus is to build UCSD's endowment funds. Such private support represents the best opportunity for UCSD to offset its limited State revenues, and the fluctuations in federal research funding. In an effort to build UCSD's endowment and adopt a funding base for the UC San Diego Foundation that parallels other UC campuses, we will institute several earnings-return changes that will affect all gift and private grant fund holders. After consultation with the Academic Senate, it has been decided that UCSD will no longer assess the returns paid by the Foundation's endowment funds. Instead, the full return will be paid to the fund holders. An assessment will be made, however, on current gift and private grant funds held by the Regents and the UC San Diego Foundation. Phased in three years, this assessment will be in the form of a cap on earnings to those funds. In FY 1998-99, such funds will earn up to a maximum of 5%; in 1999-00, the funds will earn a maximum of 4.5%; and in 2000-01, the maximum will be 4%. Thereafter, the earnings cap will remain at 4% annually. Current gift and grant fund investment earnings in excess of this annual cap will be transferred to Development and University Relations (D&UR). Expenditure of these funds by D&UR will be restricted to (1) paying the administrative costs of operating the UC San Diego Foundation, and (2) maintaining the payout to holders of current funds at 4% in years in which the earned return is less than 4%. Questions regarding this new policy (410-10) should be referred to the Vice Chancellor of your division. John A. Woods Vice Chancellor Resource Management and Planning |