E.1. What Authority do Chancellors Have to Allocate Gift Funds
     Spring 1992

Development Policy and Administration Manual 
Chapter III. Gift Administration Policy 
Section E. Allocating and Reallocating Gift Funds
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                    WHAT AUTHORITY DO CHANCELLORS HAVE
                            TO ALLOCATE GIFT FUNDS?         



Allocation is defined as both the designation of campus, purpose,
and type of fund, and the implementation of this designation. 
Sections 100.4(s), 100.4(t) and 100.4(u) of the Standing Orders
of The Regents grant authority to the President to allocate and
reallocate gift funds of $500,000 or less when the donor has not
fully designated the campus, purpose, or type of fund.  On April
16, 1991, the President delegated this authority, within the
limitations specified below, to the Chancellors for funds that
have been designated by the donor for a single campus.  This
authority may not be redelegated.  

Within their jurisdiction, for gifts within their acceptance
authority, Chancellors are authorized:

    (a)  to designate, in accordance with the terms specified by
         the donor* ( For example, if a donor's bequest states
         that a gift is to be used for "student aid", a
         chancellor may designate "undergraduate scholarships"
         as a purpose.), the purpose for which a gift shall be
         used and whether income and/or principal shall be used,
         and to make allocations and reallocations in accordance
         therewith;

    (b)  to determine, to the extent not specified by the donor,
         the purpose for which a gift of not more than $250,000
         shall be used and whether income and/or principal shall
         be used and to make allocations and reallocations in
         accordance therewith; and

    (c)  for gifts above $250,000 to a limit of $500,000, to
         determine, to the extent not specified by the donor,
         the purpose for which a gift shall be used and to make
         allocations and reallocations in accordance therewith,
         when the gift is designated by the donor as a true
         endowment or when the gift is to be allocated or
         reallocated as a fund functioning as an endowment.

The President retains the authority to allocate or reallocate any
gift above $250,000 to a limit of $500,000 as a plant fund or as
a current fund.
                                                                           
It is understood that the delegation under (b) includes the
authority to designate the type of fund.

Any allocation made by a Chancellor shall conform to established
University programs and policies and shall not constitute a
commitment requiring expenditures in excess of budgeted items. 
Any reallocation of a true endowment shall be made only after
consultation with General Counsel.

For purposes of the delegation, the term "gifts" includes out-
right gifts, pledges, and bequests, but excludes grants from
private sources (See Section III: D, Is it a Gift or a Private
Grant?).  The dollar value of a gift is fixed at the amount of
cash or, in the case of gifts of property, the equivalent to the
fair market value of the assets.** 

Gifts that do not fall within the Chancellors' allocation
authority are allocated by the President or The Regents.  For
further information see Section III: E.2, Allocating and
Reallocating Gifts and Bequests, and Section III: E.3, Guidelines
for Proposals to the Gifts and Bequests Review Committee.


Reference:  Presidential Delegation of Authority--Allocation and
Reallocation of Gifts and Bequests, April 16, 1991


* For example, if a donor's bequest states that a gift is to be used
for "student aid", a chancellor may designate "undergraduate 
scholarships" as a purpose.

** For purposes of allocation and reallocation, the dollar value 
of a gift is considered to be the full value of the original assets. 
Thus, if a campus wished to allocate a $500,000 gift as two
funds--a $250,000 fund functioning as an endowment and a $250,000
current fund--both the initial allocation and any subsequent
reallocation of the fund functioning as an endowment would be
within the President's jurisdiction.