Quasi-Endowment Fund [Education] Law and Legal Definition

According to 34 CFR 628.6 [Title 34 – Education; Subtitle B -- Regulations of the Offices of the Department of Education; Chapter VI -- Office of Postsecondary Education, Department of Education; Part 628 -- Endowment Challenge Grant Program; Subpart A – General], the term 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.”