Finance and Operational Info
Policy on Fees
A long-term goal of the Delta State University Foundation (a 501(c)(3) charitable organization as recognized by the Internal Revenue Service) (the “Foundation”) is to build the institution’s capacity to raise the maximum amount of private funds in the future for Delta State University (the “University”). The Foundation strives to utilize an equitable fee structure to cover essential operations of the Foundation as such costs are not supported by the University.
Advancement gift fees were introduced and adopted by the Delta State University Foundation Board of Directors (the “Board”) in November 2017 and such gift fee assessment began on gifts received on and after January 1, 2018. In April 2019, the Board reviewed the initial advancement gift fee structure adopted and revised the fee structure to be assessed on gifts received beginning July 1, 2019.
Advancement Gift Fee
Upon receipt of a gift, the Foundation will deduct the one-time advancement gift fee from the amount gifted. While the fee will have only a minor effect on individual funds, its collective impact will encourage sustained growth in private support across the University.
Effective July 1, 2019, the advancement gift fee applies as follows:
- 7% on all gifts up to $2 million.
- For gifts greater than $2 million, the advancement gift fee will apply only to the first $2 million of the total gift. The maximum amount of the advancement gift fee assessed on a single gift shall not exceed $140,000.
The advancement gift fee will not be assessed on gifts made pursuant to the Delta State University Alumni Association membership or affinity programs. This fee will not apply for a private foundation that has a written policy stating it will not pay gift fees. This fee will not be applied to non-cash gifts (in-kind, service, real estate) that will not or cannot be sold. This fee will not be assessed on such other gifts as the Executive Committee of the Board shall approve upon the recommendation of the Foundation’s Executive Director. Such exemptions and partial exemptions shall be granted in only the rarest of circumstances and only where there is substantial potential for developing a long term funding relationship with the donor and the gift’s designated use is compatible with the University’s organizational priorities.
Endowment Management Fee
Effective July 1, 2021, a 2% management fee based on the endowment’s fair market value will continue to be assessed by the Foundation to each endowed fund on June 30 of every year. This would include all endowment funds regardless of the year it was created. All endowment fund gifts made to create an endowment and add to an existing endowment would NOT be subject to gift fees. Instead, the endowment fund would only pay the 2% management fee on June 30 of each year.
Periodic Review of Fees
The Board’s Finance Committee will review these fees annually.