Gift and other administrative fees are assessed by Oregon Tech Foundation (OTF) to help defray the costs of gift administration. The assessed fee helps provide stewardship, gift acknowledgement, database maintenance, staff development support, donor relations, and other development operation expenses.
- The “administrative/gift fee” is 5% of the contribution/donation.
- The administrative/gift fee will be assessed at the time of the gift. Any deferred or planned gift will be assessed the fee when the gift is realized, not when the gift is pledged.
This policy is effective as of January 1, 2013.
Why does OTF have an administrative/gift fee?
The administrative/gift fee allows OTF to reduce its reliance on direct funding for its operations from Oregon Tech, thus freeing University funds for education, research and community service programs. Administrative/gift fee revenue is directly related to the OTF cost of doing business. The OTF is committed to a development effort that will provide private support to Oregon Tech. The benefits of private support to Oregon Tech academics have been evident in the past years. In order to recover a portion of the increasing costs of raising funds and administering those funds an administrative/gift fee is assessed.
How are operations of the OTF funded?
Foundation operations are funded through a combination of revenue including a portion of unrestricted gifts, endowment management fees, quasi-endowment established from a planned gift, an administrative/gift fee, and direct support from Oregon Tech.
Do other universities charge administrative/gift fees? In Oregon? Nationally?
Approximately 80% of university foundations throughout the country administer an administrative/gift fee. University of Oregon Foundation, Portland State Foundation and Oregon State University Foundation currently charge 5%. Southern Oregon Foundation charges 3%. We are a relatively new university foundation with a comparatively small endowment and thus endowment administrative fees only partially cover our costs of doing business. However, even older foundations with much larger endowments frequently charge administrative/gift fees. For example, the University of Connecticut Foundation with an endowment of over $250 million, charges gift fees ranging from 3-5%.
The local non-profit organizations I support don't charge administrative/gift fees. What is 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 gift fee is identified.
How often does the administrative/gift fee change?
The OTF reviews the administrative/gift fee on an annual basis.
Does the OTF charge other fees?
Like the vast majority of other foundations, the OTF charges an annual fee to manage endowed funds that are invested in perpetuity. Because we want to maximize our endowment’s growth over time, we keep this annual management fee to a minimum, currently 1% of the market value of the endowment.