Investing in the Long-Term Investment Pool

Units may wish to invest unrestricted operating funds in the Long-term Investment Pool (LTIP) by creating a fund functioning as an endowment (FFE). This vehicle functions much like a mutual fund, whereby participants buy shares at the current market rate and receive a per-share annual income payout as determined by Cornell's board of trustees.

It is important to realize that this investment vehicle does not have a guaranteed rate of return, and that participants expose their investments to market losses, as well as gains. All market risks associated with FFE investments are assumed within the college, department, or unit. To minimize a unit's investment risk associated with investing in the LTIP, the university has established the following guidelines associated with FFE investments.

The most current market rates and payout information are published on the this website. To request an FFE, please contact Accounting.

Guidelines for Funds Functioning as Endowments (FFE)

If you have questions about these guidelines, please contact Accounting.

Effective July 1, 2018: ALL funds must meet the July 2013 guidelines for Funds Functioning as Endowment (FFE).

• The December 2017 market value (MV) will be used to determine if the unrestricted (UR) FFE is less than $100k.
  • This timeframe is selected because December is also used to determine if endowments are underwater for payout distribution in the next fiscal year.
• Unit options:
  • Combine existing UR-FFE accounts to bring the MV greater than $100k
  • Liquidate the UR-FFE account (withdrawal funds and deposit to a GNDEPT account).
  • Transfer excess department funds to bring the MV greater than $100k. If funds are deposited to meet the threshold, funds cannot be withdrawn for five years.
• All requests to meet the minimum $100k threshold must be submitted no later than May 1, 2018. Changes submitted on May 1, will be processed by the May 25 cutoff.
  • Withdrawals/liquidations of <$100,000 FFEs will not require a two-month notice.
• The minimum threshold amount will be reviewed every five years - next in FY 2023 (unless guidelines change).
• This policy does not apply to donor-restricted FFEs, including AA&D class funds accounts (org 59E0).

Effective July 1, 2013, the minimum investment amount for an FFE is $100,000.

• Funds must be invested for a minimum of five years.
• Requests for withdrawal require two-month notice.
• Requests for withdrawal over $1 million per year require both Provost and CFO approval.
• Existing funds whose market value is below the minimum threshold will be grandfathered for five years; effective July 1, 2018, all funds must meet the FFE requirements (see above).
• Any deviation from policy requires CFO approval.

Foundation Funds

The establishment of any new Cornell University Foundation funds (also invested in the LTIP) will carry the same minimum investment requirement; however, due to the nature of the funds and requirements of donor advised fund programs, none of the other requirements described above apply.

Gifts for Capital Projects

Gifts of $25 million or more that are received for a specific, approved capital project in advance of construction will be considered for investment in the Treasurer's office working capital portfolio. The intent of these actions is to protect the value of these shorter-term investments; we will review the guidelines on an annual basis to be sure they continue to meet the needs of the university.

Withdrawing from LTIP

To withdraw funds from the LTIP, complete the following form.

Note: Requests for withdrawals require a two-month notice.

FFE Withdrawal Request Form (PDF, 53 KB)