The chart below explains the administrative fees applicable to various types of funds. The administrative fees are calculated on the principal balance of each fund and are charged directly to the fund. They cover the services provided by the Foundation's staff and other administrative costs. Since the fees are spread over a substantial asset base, the fees to any one fund are modest. The Foundation takes pride in the fact that its administrative fees are among the lowest of all community foundations.
In addition to the administrative fees, the Foundation incurs investment-related fees, which are netted out of investment results before fund balances are reported to the donor. The full costs of the Foundation’s investment-related activities on an annual basis generally range from 85 to 90 basis points of the endowment portfolio average market value. The cost of the services of the professional investment managers retained by the Foundation represents approximately 65 to 75 of the total basis points. The remaining costs covered by these fees are the costs of custody of the assets, investment consulting services, and the administrative fees of the Trustee (if applicable to a given fund).
For more information, please contact Lori Rabb, vice president for philanthropic services, at 860-548-1188 x1028 or lrabb@hfpg.org.
Administrative Fees
| |
Admin. Fee in basis points1 |
| Unrestricted Fund |
100 |
| Preference Fund |
100 |
| Field of Interest Fund |
100 |
| Donor-Advised Fund |
120 (first $500,000)
90 (next $500,000 to $1 MM)
85 (next $1 MM to $1.5 MM)
60 (next $1.5 MM to $4 MM)
55 (over $4 MM) |
Named Award in the
General Endowment Scholarship Fund |
140 |
| Individual Scholarship Fund |
150 |
| Designated Fund |
60 (first $1MM)
45 (next $1 MM to $2 MM)
35 (over $2 MM) |
| Build-Up Fund |
60 |
(effective January 1, 2010)
1 A basis point is one one hundredth of 1% (.01%).
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