General

34 C.F.R. Part ..., Subpart A
in effectEffective: 2024-07-01

34 C.F.R. § 628.1 What are the purposes of the Endowment Challenge Grant Program?

The Endowment Challenge Grant Program provides endowment challenge grants, which must be matched, to eligible institutions to— (a) Establish or increase endowment challenge funds; (b) Provide additional incentives to promote fund-raising activities; and (c) Foster increased independence and self-sufficiency at those institutions.

34 C.F.R. § 628.2 Which institutions are eligible to apply for an endowment challenge grant?

An institution is eligible to apply for an endowment challenge grant if— (a) It qualifies as an eligible institution for the Strengthening Institutions Program under 34 CFR 607.2; (b) It qualifies as an eligible institution for the Strengthening Historically Black Colleges and Universities Program under 34 CFR 608.2; (c) It would have qualified as an eligible institution for the Strengthening Institutions Program if 34 CFR 607.2(a)(3) referred to a postgraduate degree rather than a bachelor's degree; (d) It would have qualified as an eligible institution for the Strengthening Historically Black Colleges and Universities Program if 34 CFR 608.2(a)(4)(i) referred to a postgraduate degree rather than a bachelor's degree; or (e) It qualifies as an institution that makes a substantial contribution to graduate or postgraduate medical educational opportunities for minorities and the economically disadvantaged.

34 C.F.R. § 628.3 Under what conditions may an eligible institution designate a foundation as the recipient of an endowment challenge grant?

An eligible institution may designate a foundation, which was established for the purpose of raising money for that institution, as the recipient of an endowment challenge grant if— (a) The institution assures the Secretary in its application that the foundation is legally authorized to receive the endowment fund corpus and to administer the endowment fund in accordance with the regulations in this part; (b) The foundation agrees to administer the endowment fund in accordance with the regulations in this part; and (c) The institution agrees to be liable for any violation by the foundation of any applicable regulation, including any violation resulting in monetary liability.

34 C.F.R. § 628.4 What time limitations are placed on grantees applying for another grant?

(a) Except as provided in paragraphs (b) and (c) of this section, an institution that has received a grant under this part may apply for another grant under this part only after 10 fiscal years have elapsed following the fiscal year appropriation from which the institution's grant was awarded (base fiscal year). (b) An institution that has received a grant under this part may apply for another grant under this part after five fiscal years have elapsed following the base fiscal year if the appropriation for this part exceeds $20 million in any of those five fiscal years. (c) If an institution has received a grant under this part and the appropriation for this part exceeds $20 million in any of the sixth through tenth fiscal years following the base fiscal year, the institution may apply for another grant under this part in the fiscal year in which the appropriation exceeds $20 million, or any subsequent fiscal year.

34 C.F.R. § 628.5 What regulations apply to the Endowment Challenge Grant Program?

(a) The following regulations apply to the Endowment Challenge Grant Program: (1) The regulations in this part 628. (2)-(3) [Reserved] (b)(1) The Education Department General Administrative Regulations (EDGAR) as follows: (i)-(ii) [Reserved] (iii) The regulations in 34 CFR 75.100 through 75.102, and 75.217. (iv) 34 CFR part 79 (Intergovernmental Review of Department of Education Programs and Activities). (v) 34 CFR part 82 (New Restrictions on Lobbying). (vi) 34 CFR part 84 (Governmentwide Requirements For Drug-Free Workplace (Financial Assistance)). (vii) 34 CFR part 86 (Drug and Alcohol Abuse Prevention). (2) Except as specifically indicated in paragraph (b)(1) and (c) of this section, the Education Department General Administrative Regulations and the regulations in 2 CFR part 200 do not apply. (c) The following regulations in title 2 of the CFR apply to the Endowment Challenge Grant Program: (1) 2 CFR part 180 (OMB Guidelines to Agencies on Governmentwide Debarment and Suspension (Nonprocurement)), as adopted at 2 CFR part 3485. (2) 2 CFR 200.328 (Monitoring and reporting program performance), as adopted at 2 CFR part 3474. (3) 2 CFR part 200, subpart F (Audit Requirements), as adopted by ED at 2 CFR part 3474.

34 C.F.R. § 628.6 What definitions apply to the Endowment Challenge Grant Program?

The following definitions apply to the regulations in this part: Endowment fund means a fund which excludes real estate and which is established by State law, by an institution, or by a foundation that is exempt from taxation and is maintained for the purpose of generating income for the support of the institution. The principal or corpus of the fund may not be spent. “Endowment fund” includes “quasi-endowment fund”. Endowment fund corpus means an amount equal to the endowment challenge grant or grants awarded under this part plus matching funds provided by the institution. Endowment fund income means an amount equal to the total value of the endowment fund established under the grant minus the endowment fund corpus. Quasi-endowment fund means a fund which the governing board of an institution or foundation establishes to function as an endowment in that the principal is to be retained and invested. However, the entire principal and income may be spent at any time at the discretion of the governing board.

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