Financials & Policies
The UND Alumni Association & Foundation manages funds professionally, transparently and to the highest standard, fulfilling our donors’ intentions and meeting the needs of the University of North Dakota. We adhere to Generally Accepted Accounting Principles (GAAP). In addition to certified accountants and financial professionals, our Board of Directors Investment Committee provides guidance and oversight.
Audits, Taxes and Disclosures
The University of North Dakota Alumni Association & Foundation is a 501(c)3 charitable organization exempt from federal income tax. Federal Tax ID is 45-0348296.
The University of North Dakota Alumni Association and Foundation is registered to solicit charitable contributions with the appropriate governing authorities in all states requiring registration.
Financial and other information about the Foundation’s purpose, programs, and activities can be obtained by contacting the UND Alumni Association & Foundation at 3501 University Ave Stop 8157, Grand Forks, ND 58202-8157; calling 800-543-8764 or as specified below for residents of the following states.
- Florida: Upon request, from the Division of Consumer Services by calling toll-free, within the state, 1-800-HELP-FLA.
- Maryland: For the cost of postage and copies from the Maryland Secretary of State, State House, Annapolis, Maryland 21401, 410-974-5534, 1-800-825-4510.
- Michigan: MICS No. 42535
- Mississippi: Upon request, from the Mississippi Secretary of State’s office by calling 1-888-236-6167.
- New Jersey: Information filed with the attorney general concerning this charitable solicitation and the percentage of contributions received by the charity during the last reporting period that were dedicated to the charitable purpose may be obtained from the attorney general of the state of New Jersey by calling (973) 504-6215.
- New York: Upon request, from the Attorney General Charities Bureau, 120 Broadway, New York, NY 10271.
- North Carolina: Upon request, from the State Solicitation Licensing Branch at 1-888-830-4989 (within North Carolina) or 919-807-2214 (outside North Carolina).
- Pennsylvania: Upon request, from the Pennsylvania Department of State by calling toll-free, within Pennsylvania, 1-800-732-0999. Registration does not imply endorsement.
- Virginia: Upon request, from the State Office of Consumer Affairs in the Department of Agriculture and Consumer Affairs, PO Box 1163, Richmond, VA 23218.
- Washington: Upon request, from the Secretary of State at 1-800-332-4483.
- West Virginia: Upon request, from the Secretary of State, State Capitol, Charleston WV 25305.
Registration in a state does not imply endorsement, approval or recommendation of the UND Alumni Association & Foundation by the state.
We believe investment success is the result of:
- A focus on the long term;
- Diversification across a variety of asset classes, styles and strategies;
- The careful evaluation of market characteristics followed by the application of informed, professional judgment in the construction of investment programs;
- The retention of high-quality managers to execute specific assignments;
- Consistent review;
- Disciplined risk management.
Key elements of our philosophy are:
- Informed research to collect data and research that uncovers or discovers opportunities;
Rigorous analysis and quantitative assessment to anticipate opportunity by discerning patterns of valuation;
- Opportunistic fund management to take advantage of secular market shifts and short term market anomalies;
- Market continuity to have a long-term perspective and commitment over market cycles and deliver alpha-generating strategies across all asset classes;
- Capacity to place investment performance ahead of fund size and to close funds for new investment if the opportunity set narrows.
The UND Foundation is proud to work with SEI, our outsourced chief investment officer. SEI has been delivering investment outsourcing solutions for more than 25 years and manages $21.2 billion on behalf of 169 nonprofit clients (as of June 30, 2016.) SEI’s professionals created a custom investment portfolio designed to meet our organizational and financial goals, and the SEI solution allows us to focus on fulfilling our university's mission.
Life Income Gift Management
TIAA Kaspick, a nationally recognized firm, manages and administers our planned gift assets (charitable remainder trusts and gift annuities). The firm, a subsidiary of TIAA, is headquartered in Redwood Shores, California, and has offices in St. Louis, Missouri and Boston, Massachusetts. The firm uses no-load and institutional quality mutual funds to build broadly diversified portfolios, and this diversification into a broad spectrum of assets is a prudent approach. Comprehensive reports on performance and asset allocation are provided so that you and UND Foundation can easily track this important investment.
PurposeThe UND Alumni Association and Foundation (the “Organization”) operating budget comes from four primary sources:
- An assessment on the market value of endowments.
- A one-time assessment on most non-endowed incoming gifts.
- Institutional support for activities of Organization fundraising,engagement, and donor relations.
- Interest earnings on fund balances.
A per annum management fee is assessed on a quarterly basis based upon the quarter-end market value of that endowment within the investment portfolio. This rate is established by the Organizations’ Board of Directors and is currently 1.5% annually.
Donor Advised Fund Management
Beginning in FY24, any Donor Advised Fund established with and managed by the UNDAAF will be assessed a fee that follows the Endowment investment management fee that is determined annually by the Organization’s Board of Directors.
A development reinvestment fee of 5% is assessed at inception on all non-endowed deposits to the Organization for most gifts, see exceptions below. The Organization assesses a one-time fee to support fund raising, donor relations, and engagement and alumni relations for the benefit of the University.
- Gifts to endowment distribution accounts will not be assessed a reinvestment fee.
- Gifts to non-endowed scholarship funds will not be assessed a reinvestment fee.
- Gifts from Legacy or Life Income Arrangements:
- A 10% fee is assessed on all non-endowed distributions from estates, retirement plans, trusts, gift annuities and life insurance proceeds.
- Any distribution designated by the donor(s) to a named endowment will be charged investment management fees of 2.5% per year for four years.
- Other deposits (for example sponsorships and event registrations) will be assessed a 10% reinvestment fee.
Pass Through Fees
If a broker or property manager is engaged on behalf of the Organization, any fees charged become a cost to the appropriate fund.
The Organization accepts Visa, MasterCard, Discover, and American Express. Our goal is to limit credit card transactions to $10,000. Fees from credit card vendors will be charged to each applicable Organization fund at a rate of 2.75% for all deposits received via a credit card transaction.
Exceptions to Stated Policy
Exceptions to all charges stated will be considered on a monthly basis by the Chief Development Officer and/or Vice President of Finance. Requests for a variance should be emailed. Exceptions to fee policy will be reported at least annually to the Board Governance Committee.
The UND Alumni Association and Foundation (the “Organization”) is organized as a North Dakota nonprofit corporation, is exempted from federal income tax liability by Internal Revenue Code Section 501(c)(3) and qualifies as a public charity. The Organization exists to secure and manage private gifts for the benefit of the University of North Dakota (the “University”). This document has been developed and approved by the Organization’s Governance Committee of the Board of Directors to outline procedures for analyzing and accepting charitable gifts to the Organization for the University’s benefit. The purpose of the Gift Acceptance Policy is to provide a set of standards by which gifts are reviewed and accepted.
This policy provides a framework for the management of the assets of the UND Alumni Association and Foundation (the “Organization”) as well as assets held on behalf of the University and its affiliates. Its purpose is to assist the Board of Directors in effectively supervising and monitoring the investments of the Organization. A subcommittee of the Board of Directors, or Investment Committee, (“Committee”) has been established to focus on implementing and monitoring the Organization assets (the “Fund”) in accordance with the guidelines outlined in this policy.
The Committee has arrived at this Investment Policy through careful study of the returns
associated with various investment strategies, the current and projected financial obligations of the Pool and growth goals. The Committee has consulted with an outside OCIO (as defined below) as it deemed appropriate. This Investment Policy has been chosen as the most appropriate policy for achieving the financial objectives of the Pool, which are described in the “Statement of Objectives” section of this document; however, the Committee shall be free to deviate from this Investment Policy when it concludes that it is prudent and in the interest of the Pool to do so, and may amend the Investment Policy at any time. The Committee is entitled to deference in its interpretation of this Investment Policy.
The Committee has adopted a long-term investment horizon such that the chances and
duration of investment losses are carefully weighed against the long-term potential
for appreciation of assets.
It is not expected that the Investment Policy will change frequently. In particular, short-term changes in the financial markets should not require an adjustment to the Investment Policy.
The assets of the Pool will be invested in accordance with all applicable laws. The
Committee will perform
its duties in a manner consistent with fiduciary standards. Specifically:
• Duty of care
• Duty of loyalty
• Duty of obedience
• Duty to diversify investments
Conflict of Interest
If any member of the Committee, Custodian and/or the OCIO has, or appears to have, a conflict of interest that impairs or appears to impair the respective individual’s ability to exercise independent and unbiased judgment in the good faith discharge of his or her duties, he or she shall disclose such conflicts.
The UND Alumni Association and Foundation (the “Organization”) operates and raises funds for the benefit of the University of North Dakota (the “University”) under federal, state and local laws and regulations that govern charitable fundraising, gift reporting and special events.
This policy is to assist fundraising that benefits the University executed by the
departments, student groups, faculty/staff, or by third parties.
To comply with North Dakota law, guarantee proper allocation of donations, avoid adjustments,
maintain consistent donor relations, no gift to the Organization shall be returned to a donor unless a clear error in the amount of payment or payee has occurred.