Foundation Administrative Fees
Northeast Community College Foundation Administrative Fees
The Northeast Community College Foundation is committed to being accountable to our donors and provides timely gift receipts, accurate records, expert management of funds, and efficient disbursement of funds to programs at the College. Our operations are funded through a combination of revenue from earnings on short-term funds, administrative fees, and direct support from the College.
What are the Northeast Community College Foundation’s administrative fees?
- Restricted and Unrestricted Gifts – 3%
- Endowment Management – up to 1.5% of the 12-quarter rolling average of the fair market value of all endowments and their associated temporarily restricted funds may be charged annually.
Why does the Northeast Community College Foundation have administrative fees?
Administrative fees allow the Northeast Community College Foundation to reduce its reliance on direct funding for its operations from Northeast Community College, thus freeing College funds for educational purposes. Administrative fee revenue is directly related to the Northeast Community College Foundation’s cost of doing business. Effective fund-raising requires deployment of financial resources to cover direct costs of soliciting, processing, and accounting for donated funds.
Do other colleges and universities charge administrative fees?
Administrative fees of 3-5 percent are not uncommon at college and university foundations throughout the country.
The local non-profit organizations I support don’t charge administrative fees. What’s the difference?
The difference is primarily one of terminology. All community organizations have operating costs. In general, revenue from contributions helps in part to support them—whether or not a formal administrative fee is identified.
In the non-profit sector, best practice standards hold that operating costs in the range of 15-20 percent are considered to be excellent, assuring that approximately $.80 of every dollar contributed goes to providing direct services. By comparison, $.97 of each dollar you give to the Northeast Community College Foundation gets put to work by the College for the specific purpose you choose to support.
Can the administrative fees be waived?
If a gift is made by a private foundation that has a written policy stating it will not pay administrative fees, the Northeast Community College Foundation will waive the fees.
Please contact the Northeast Community College Foundation office, 402-844-7056, with additional questions regarding this fee.