Purpose
The 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.
Endowment Management
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.
Development Reinvestment
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.
Exceptions:
- 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
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If a broker or property manager is engaged on behalf of the Organization, any fees charged become a cost to the appropriate fund.
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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.