Processing Revenue.

Boston University’s Gift Policy Manual provides detailed information on Gifts and Endowments and has been summarized in this section of the Handbook. All SPH departments looking to record gifts and/or endowments to their accounts should reference this manual and work closely with SPH Development and Alumni Relations (DAR) to ensure proper accounting of this type of revenue.

Gifts are irrevocable transfers of assets, i.e., contributions from private sources for which no goods or services are expected, implied, or forthcoming in return to the donor, and in which no proprietary interests are to be retained by the donor.

Endowment funds are resources received by the University that help to provide a sustainable level of support for the University’s operating budget. The donor gift or principal amount is invested in the University pooled endowment to provide both income and long-term growth. Individual endowment funds are comprised of a specific number of “units” or shares within the University endowment that generate annual income either for distribution use or to be returned to the principal.

Grants or Sponsored Activities are different from gifts, as the University undertakes them with the support of an external entity, which expects in return specific outcomes that either directly benefits the provider or a public purpose. At a minimum, the provider requires the University to report on how the funds were spent, and/or what progress has been made in accomplishing the goals of the activity.

The University’s Gift or Sponsored Agreement? webpage has some helpful tips for differentiating between these types of activities. The SPH Development and Alumni Relations team or idea hub can help to determine which type of agreement is necessary.

Restrictions for gifts and endowments

For more information on designating funds, see Boston University’s Gift Policy Manual under “designating funds” for details on, fund types, endowment (or permanent) fund classifications, and others.

Procedures for gifts and endowments

Gifts and endowments accounts (also known as internal orders) follow a specific structure. Please follow the instructions for Procedures for Gifts and Endowments in the Funds Management section of this Handbook.

Note: Please make sure to involve SPH DAR in all matters about gifts and endowments.

Income-generating revenue refers to fee-based services provided to external parties by departments or programs exclusive of grant-supported activities. The income generated by these activities may be coded to a fund center or internal order account. Please contact SPH Finance and Administration to ensure revenue is recorded in the appropriate account.

Examples of other income-generating activities:

• Population Health Exchange
• BEDAC

Helpful Links
Post-Award Financial Operations – Manage an Award
Sponsored Research – Award Closeout

The University allows schools, departments, and programs two methods of collecting non-tuition based revenue. For information on collecting revenue procedures, see the How-to Collect Revenue tip sheet. This tip sheet includes information on the Cashier’s Office and Cash Management/Miscellaneous Receivables.

Helpful Links
Depositing Checks and Cash for Medical Campus
Credit Card Processing
PCI Data Security Standards
Research Support – Manage an Award: Cash Management
Research Support – Miscellaneous Receivables
Create a New Customer – BUworks October 2017 Finance Newsletter
Entering Outgoing Invoices – BUworks Online Help

Restricted gifts and endowments

Department directors and administrators are responsible for spending and reconciling all gift and endowment accounts within the department’s fund center every month. Departments should spend the funds in a timely and appropriate manner according to the donor’s guidelines. Account administrators should ensure that new gifts are properly recorded and ensure posting accuracies and investigate any questions as they arise. The terms of all accepted restricted funds are kept on file in the Office of General Accounting in the Comptroller’s Office. If a department is unclear about the restrictions for a gift or endowment account, please contact SPH Development and Alumni Relations.

Helpful Link
Gift and Endowment Fund Administrator Training