I have not heard from my attorney as yet, but I found this information on a University web site. Apparently there is such an animal as a "quasi endowment." Hope this helps. See below:
Types of Endowments
3. Endowments are classified as permanent, quasi, or term endowments. Funds can be either restricted or unrestricted within each of these classifications. Restricted endowment funds are funds for which the donor specifies how the endowed income will be used. Unrestricted endowment funds are funds for which the annual earnings are used at the discretion of the President of the University.
a. Permanent (True) Endowments: Donor specifies principal is to be invested and maintained in perpetuity; only the income distributions may be expended.
b. Quasi Endowments: Quasi endowment funds are funds functioning as an endowment that are established by the institution from either donor or institutional funds, and will be retained and invested rather than expended. The quasi endowment must retain the purpose and intent as specified by the donor or source of the original funds, and earnings may be expended only for those purposes. Since quasi endowments are established by the institution rather than by an external source, the principal may be expended as stipulated by the donor.
c. Term Endowments: Similar to permanent endowment funds except after the expiration of a stated period of time or occurrence of a specified event, all or part of the principal may be expended depending on donor wishes.
