Written by Brooke Labashousky.

It is that time of year for Foundations Accounting and Investments (FAI) to finalize the next fiscal year’s Endowment Spending Budgets. Units should have or should soon receive communication of their final FY27 Endowment Spending Budgets from the FAI team.

The calculation and process for these budgets is managed by the North Carolina State Investment Fund (NCSIF) Endowment Spending and Distribution Policy Statement. FAI recently worked with the NCSIF Members Board to review and update this policy. In Section 4, the following line was removed: “Spending budgets for new endowments that are UPMIFA compliant and are established during the current fiscal year and”. This line describes the previous Phase II spending calculation for endowments established during the fiscal year. The Members Board and FAI chose to remove Phase II as it no longer supported business continuity and the needs of the university.

FAI would like to remind units the spending policy does allow for exceptions for individual endowments as needs arise. “Exceptions to this policy statement for individual endowments held by Participants must be jointly approved by the respective Dean or President and respective Treasurer or Assistant Treasurer.” FAI encourages units to evaluate the reserves available in the fund and the spending needs; these reserves will help provide continuous endowment support for years to come.

Please reach out to the FAI Systems Team for any questions about your endowments, spending budgets and unit spending needs.