Definition/Background

Departments occasionally receive gift money from a donor that does not have specific limitations on how that money should be spent. The donor might tender a gift which specifies unrestricted use, such as "for such purposes as the Board of Regents ( President, Dean, etc. ) deems to be in the best interest of the University " or " to be used at the discretion of the Board of Regents ( President, Dean, etc. )" This type of gift money is set aside for "discretionary" purposes. Examples of discretionary spending include but are not limited to some recruiting expenses, first class travel, entertainment, food, and alcohol.

Funds used to support programs or specific individuals (e.g. PIs) are considered narrower in scope, so we suggest setting up a restricted gift account (65-XXXX) with a discretionary sub account (64-XXXX) if alcohol purchases are approved by the donor and appropriate for the purpose stated on the form.

State budgets or "public funds" are limited by state and federal regulations and are not authorized to spend money on these discretionary items. Therefore, discretionary fund revenues must be kept separate from public funds, and the expenditures documented and processed according to policies regulating discretionary spending.

Applies to:

Any department with discretionary funds to spend.

Process Overview

To establish a discretionary fund:

1. Fill out a Request to Establish a Discretionary Fund form.
2. State the source of the funds and the purpose of the donor on the form.
3. Have the form signed by the Vice President or Dean of the department, and send to:

Grant and Contract Account Box 351122
and a copy to:

Gift Processing Box 359505

The request is reviewed then signed and processed by Grant and Contract Accounting.

A discretionary fund budget (64-XXXX budget)is set up and the fund administrator, form preparer, and Gift Policy is notified that the account has been established.

Upon receipt of the budget number, Gift Policy and Administration sets up an allocation in the ADVANCE (Alumni, Donor and Friends) Database. Once this allocation is established:

4. Send any gifts or charitable contributions (in the form of checks or credit cards) along with a Gift Transmittal Form to:
   

   Gift Processing
   Box 359505

   (Refer to the second page for instructions on filling out the form.) Funds are applied to your discretionary budget.

Turnaround time: 1-14 days

Additional Information

The ADVANCE database interfaces with the Financial Accounting System, and you can see financial transactions related to your discretionary budget on your Budget Activity Report. If your department would like to be able to access the ADVANCE system, send email requesting an account to devhelp@uw.edu

References/regulations

• Operating Policy Used to Administer Discretionary Fund Budgets
• Request to Establish a Discretionary Fund form
• Gift Policy and Administration: Gift Processing Guidelines

Contacts

Please contact gcahelp@uw.edu or call 6-9995 with any questions.