General Donation Questions

1.  What is the IU Faculty Endowment Income Matching Program (FEMP)?

FEMP is a program that was designed to increase the number of endowed faculty positions at IU. The program achieved this goal by providing an incentive to donors to provide endowments. The incentive was a "match" on the endowment. IU matched income from the endowments with university funds for all endowments over $500,000. For gifts between $500,000 and $1 million, the university matches 5% of the original gift at a rate of 1:2. For instance, a gift of $500,000 will receive $12,500 in matching income every year in perpetuity (5% of $500,000, matched at a ratio of 1:2). For gifts over $1 million, the match is 1:1. Thus, a $1 million gift receives $50,000 in matching income annually in perpetuity (5% of $1 million, matched at a ratio of 1:1.

The effect of this program is to provide a larger sum of money for endowed faculty positions than would be available from the endowment income alone. With more money available, better faculty can be recruited and retained, brighter students recruited, and significant library materials can be acquired.

2.  How do people participate in the Program?

The Faculty Endowment Matching Program is no longer active except for those agreements already in place. Interested donors had to make a donation of at least $500,000 to the IU Foundation. Donations were made in a variety of forms. Read the document "Endowing the Future" for more information, or contact the IU Foundation.

3.  May I continue giving even after I reach my pledge?

Yes, you may continue giving even if you have already reached your original pledge to the IU Foundation. All additional gifts prior to December 31, 1999 will be matched. Additional gifts matched after that date will be matched at the discretion of the President of Indiana University via an amended gift agreement..

FAQ's of Indiana University Departments and Units

1.  All the initial paperwork has been signed – now what?

When the campus budget officers receive the paperwork and review the budget, they should set up the account according to standard procedures for FEMP accounts.

The University Budget Office checks the budget to ensure it meets with donor intent as determined by the Donor Agreement, and submits a copy to the IUF for their files. As soon as the University Budget Office approves the budget, the departments may begin activity on the account, including appointing a current or recruited faculty member.

2.  How much may I budget on my FEMP account?

You should budget the full current-year matching funds, plus the amount of current-year projected earnings necessary for the appointed faculty. Budgets should reflect reality, so do not budget all the earnings unless they will all be used in the fiscal year.

Should an account have excess matching funds or earnings at the end of a fiscal year, the earnings remain at IUF for use in future years, and the matching funds carry forward to the next fiscal year. During future years, if you need to use the excess matching funds, you can increase the current budget by the necessary amount using the "balance carry-forward" object code  (0110). If the excess earnings are required, they can be budgeted as the current funds are budgeted.  You may not budget carry-forward funds as part of the base budget.

3.  What may I use the FEMP funds for?

The Donor Agreement and current IU policies and guidelines determine uses of the funds. Matching funds are taxpayer-supported university funds, and are subject to all normal university policies and guidelines. Earnings are non-taxpayer supported funds and are governed by the general IU policies and by the Donor Agreement. For specific guidelines, see the Procedures Handbook.

4.  Is the Program flexible with regard to changing the endowed faculty?

The Donor Agreement and the department or unit that has the endowed position dictate the frequency of change of the holder of the chair or professorship.

5.  What is the revenue source for the university match?

The president's office provides one-half of the match. The campus will determine whether its half of the match will come from campus, school, or department resources..