- A minimum deposit or transfer of $500 is required to open a new account
- Operating accounts that remain below the minimum for a period of 3 months are subject to closure unless special circumstances exist. The Foundation will work with the department to determine where the remaining funds are transferred
- Endowment accounts, and Quasi Endowment accounts, can be opened with the minimum deposit noted above and with a fully executed Memorandum of Understanding on file. However, endowment accounts must be in existence for one year as of July 1 and have reached a $10,000 market value ($25,000 for UMBC) before Spendable Income is available.
Account Agreement Form
Proof of the minimum deposit or transfer and a completed Account Agreement Form is required to create a new account. The form provides the USM Foundation with important information for the ongoing administration of the account. That information is as follows:
- The Department/Unit and Institution for which the account is being established.
- The Account Type – see list above. Funds with donor restrictions cannot be deposited into an unrestricted current use account. If a donation comes with restrictions it must be deposited in an existing account with the same restrictions or a new account must be established. A fully executed Memorandum of Understanding is also required for Endowment accounts and Quasi endowment accounts.
- Account Name – this must match the Memorandum of Understanding if applicable
- Purpose for which the funds will be used. Be as descriptive as possible – do not leave this section blank.
- Department/Unit Signature – the form must be signed by the Dean/ Chairperson/Vice President or equivalent organizational unit head.
- Account Administrator is the person at the institution responsible for the stewardship of the account. He/she will receive monthly statements and is responsible for reviewing and reconciling account activity.
- Authorized signers are the designated people with the authority to approve requests for disbursements or to make other account changes. At least two people must be designated and the Account Administrator cannot also be an authorized signer. Also, donors to an account cannot be authorized signers on that same account.
Endowment Memorandum of Understanding
A fully executed Memorandum of Understanding (MOU) must be on file for every endowment and quasi- endowment fund held by the USM Foundation.
The USM Foundation Business Office is the office of record for all MOU’s.
- The development officer or his/her designee at the appropriate institution coordinates the production of a rough draft of the MOU (see the MOU Sample and the MOU worksheet for guidance in preparing the draft.)
Questions about the content of the draft should be directed to the USM Foundation Vice President of Finance or his/her assistant. Please copy both the assistant and our Business Support e-mail box on any e-mails sent to the Vice President of Finance.
- The draft is then circulated to the donor and appropriate university officials for revisions and or clarifications. This step may need to happen multiple times as revisions to the original draft are made.
- A copy of the original draft and subsequent revisions must be sent to the USM Foundation Vice President of Finance for review and approval before a final copy is produced. A completed Account Agreement Form must accompany the draft.
- When all revisions have been made and approved, three (3) original copies of the final version of the MOU are produced and routed for signature first to the donor, then to the institutional president and other designated institutional parties, and finally to the USM Foundation President.
Note: Since endowment funds represent sizeable gifts, good quality bond paper should be used for all final copies to symbolize the value of the gift and to enhance the appearance of the finished product
- The USM Foundation mounts the donor copy of the MOU in a formal cover once the USM Foundation President has signed the documents. (UMCP provides their own cover and will mount the donor copies themselves.)
- The USM Foundation will forward the donor copy and the copy for the institutional president to the appropriate Development Office for delivery. The USM Foundation will retain the third original in a secure location and attach a scanned copy of the MOU to the new account record in the financial software system. The Development Office can make additional photocopies as needed.
- Planned Gift Endowments are not established in the financial software until the defined terms of the gift are met. An Account Agreement Form should not be submitted with a Planned Gift Endowment MOU. Once the terms of the gift are met the Account Agreement Form should be prepared and submitted with notification to the USM Foundation that it is ready to be established as an active endowment account. Please submit this notification and the Account Agreement form to our business support e-mail box.