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.
In addition to administrative fees, the Foundation incurs investment-related fees, which are netted out of investment results before fund balances are reported to the donor.
The total cost of the Foundation’s investment-related activities on an annual basis generally ranges from 85 to 95 basis points (.85% to .95%) of the endowment portfolio average market value. Of this total cost, the cost of the services of the professional investment managers retained by the Foundation represents approximately 65 to 75 basis points (.65% to .75%). The remaining costs relate to the custody of the assets, investment consulting services, and the administrative fees of the Trustee (if applicable to a given fund).
|TYPE OF FUND||ADMIN. FEE IN BASIS POINTS (1)|
|Field of Interest Fund||100|
|Donor-Advised Fund||100 (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 (next $4M to $5M), 50 (over $5 MM)|
|Named Award in the General Endowment Scholarship Fund||140|
|Individual Scholarship Fund||150|
|Designated Fund / Organizational Endowment||60 (first $1MM), 45 (next $1 MM to $2 MM), 35 (over $2 MM)|
effective January 1, 2020
(1) A basis point is one one hundredth of 1% (.01%).
|TYPE OF FUND||MINIMUM TO CREATE A FUND|
|Field of Interest Fund||$10,000|
|Named Award in the General Endowment Scholarship Fund||$10,000|
|Individual Scholarship Fund||$50,000|