Opening a Fund

Foundation funds operate like individual checking accounts, each designated for a specific purpose. The Kent State University Foundation manages nearly 5,000 distinct funds that support everything from scholarships to programmatic needs, supplies, study abroad experiences, research initiatives, lecture series and professorships. 

New funds are established under two main circumstances: 

  1. A donor wishes to support a specific purpose and name the fund. 
  2. A university department identifies a fundraising need that requires donation and expense tracking. 

Opening a New Fund – Minimum Requirements: 

  1. A minimum of $5,000 in secured funding is required to open a new fund. 
  2. In special cases, funds may be initiated with a $1,000 minimum if transferred from a preexisting college or program discretionary fund. 
Key Considerations

  • Before creating a new fund, review existing funds to avoid duplicating purposes.

  • Foundation funds will not be created without secured cash-in.

  • Funds should have ongoing support and must not remain inactive. 

Step-By-Step Guide

For Donor-Initiated Funds

  • Review fund creation guidelines above.
  • Once the $5,000 minimum is secured, follow the Donor Agreement Workflow.
  • The Workflow routes to a staff member in the Donor and Volunteer Engagement (DVE) office, who drafts the donor agreement and shares it with internal stakeholders.
  • A fund number is created in Finance and Advancement Banner and a notification is sent to internal stakeholders.
  • The agreement is routed to the philanthropic advisor (PA) for review with the donor.
  • The agreement is routed for donor and internal signature via Adobe Sign.
  • A fully executed agreement is shared with the donor, uploaded to the fund record in Banner and a hard copy is retained by the Foundation. 

For Internal Requests (Special Cases)

  • Review fund creation guidelines above.
  • Identify a designation to transfer funds from.
  • Submit the Fund Request Form in lieu of the Donor Agreement Workflow.
  • The foundation reviews the request and prepares a Spendable Fund Authorization Document.
  • The managing department and a Foundation representative sign the document.
  • A fund number is created in Finance and Advancement Banner and a notification is sent to internal stakeholders. 
FAQs

What is a spendable fund?
A spendable fund is used for things like scholarships, programs, capital projects, lecture series or endowed positions. It may be standalone or linked to an endowment. Every endowment has an associated spendable fund.

What is an endowed fund?
An endowed fund holds the principal of the endowment and is invested by the Foundation. The principal cannot be spent directly. Investment earnings are transferred twice annually (May and November) to the spendable fund for use. An endowment ensures funding is available in perpetuity. 

What is a spendable balance?
The spendable balance is the available amount in the spendable fund. Spending should align with donor intent. Ideally, spendable balances should not exceed 5% of the associated endowment’s balance to indicate healthy fund usage. 

What is an endowed balance?
The endowed balance is the market value of the endowment. Distributions are based on a 36-month average market value, with 4.2% distributed annually in two 2.1% installments. The current transfer amounts were calculated in May 2025 and will be recalculated in May 2028. 

Who To Contact

For questions or assistance, please contact:
Diana Bocciarelli at (330) 672-0402 or dboccia2@kent.edu or Donor and Volunteer Engagement at donorservices@kent.edu.

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