In accepting endowment funds, the University is legally bound to keep the principal intact and to comply with the donor's restrictions governing the use of income. An implied requirement of this legal principle is that the University must actually put endowment income to use; income may not be allowed to accumulate for an unreasonable period of time. To ensure compliance, it is University policy that endowment income accounts should accumulate no more than the equivalent of five years' income. The same policy extends to funds functioning as endowments.

The Budget Office and Gift & Endowment Accounting will provide each control point with a report of endowment income funds with balances in excess of 5 years accumulated income annually in October of each year.