Education

Annual Endowment Spending Distribution

Transferring the authorized spending amount from the endowment to the operating budget.

Account NameTypeDebit ($)Credit ($)
Cash (Operating)Asset (+)50,000.00-
Endowment Investment AccountAsset (-)-50,000.00
Net Assets Released (With Restrictions)Equity (-)50,000.00-
Net Assets Released (Without Restrictions)Equity (+)-50,000.00

💡 Accountant's Note

Universities don't spend the whole endowment. They 'distribute' a set percentage (usually 4-5%) each year to fund operations and scholarships.

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