How Gifts are Managed
The WSU Foundation is accountable to the University, to private donors, and to the public; and the Foundation is committed to managing and investing private gifts to the University with professionalism and integrity. To accomplish this, the WSU Foundation:
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accurately records receipts for tax purposes and acknowledges each gift;
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distributes all gifts directly to the University programs and colleges designated by the donors;
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invests endowed gifts to provide a perpetual source of income for the program or college of the donor's choosing.
Endowed gifts provide a dependable, perpetual source of income for a designated University program. As of June 30, 2007, the WSU Foundation's endowed assets totaled more than $316.7 million. The WSU Foundation's endowment is managed by the Investment Committee, a sub-committee of the WSU Foundation Board of Governors. The Investment Committee meets regularly to assess the endowment's performance and to make adjustments as needed to maximize the endowment's financial potential.
Fees Disclosure
(Including Financial Benefits to Third-Party Vendors)
The Washington State University Foundation imposes small fees on certain forms of gifts and on our endowment. The purposes of these fees vary and fees are not charged on all types of gifts. Some fees are charged to recoup specific charges by third party vendors per contract for various services. Others are designed to recoup expenses incurred by the WSU Foundation during the ordinary course of business. Small fees are also imposed to create the revenue stream to cover a portion of WSU Foundation operation expenses.
Note: Fees and financial benefits can be explained in the terms of percentages and a common unit of measure used in finance called 'basis points.' One basis point (bp) represents 1/100 of 1 percent (100bp=1%).
Endowment Advancement Fee
Annually, a 1.5% Advancement Fee is charged to the WSU Foundation Endowment. This fee is paid out quarterly and is calculated based on the 36 month rolling average of the Endowment's market value.
Endowment Management Fee
There are other costs associated with the Endowment such as investment management fees, custodial costs and consulting expenses. The WSU Foundation contracts with Hammond and Associates, for investment consultant services. The Management Fee accounts for approximately 50 basis points per year of the endowment's market value.
Note: All performance figures of the Washington State University Foundation Endowment are net of expenses.
Planned Gift Fees
The WSU Foundation contracts with Kaspick & Company, for asset management and administration of its planned gift assets. These planned gift assets include Charitable Gift Annuities, Charitable Remainder Trusts, Charitable Lead Trusts and Donor Advised Funds. The fees for Kaspick & Company's service are charged to the appropriate trust or annuity pool directly. Fees for Donor Advised Funds are negotiable.
Fees are charged against the gift annuity pool or trust/DAF principal respectively. Kaspick & Company invests in mutual funds, and the mutual fund expense ratios are a separate fee charged to the gift annuity pool or trust/DAF principal.
Closing Fee
The WSU Foundation deducts 3 percent from distributions received at the death of the donor. Closing fees are charged to estate or living trust distributions, distributions from life insurance, and retirement plans, as well as bank and brokerage or other accounts with financial organizations. This fee also applies at the termination of Charitable Trusts and Gift Annuities whether terminated voluntarily by the income beneficiary, per trust language, or at the death of the last income beneficiary.
Fees are subject to change without notice.
If you have questions about the WSU Foundation's fee structure, please call 800-448-2978.
Additional resources about the WSU Foundation:
Fiscal Year 2007 Annual Report - pdf
FY2007 IRS Form 990 - pdf
Articles of Incorporation - pdf
WSU Foundation Bylaws - pdf
501c3 Determination - pdf
Privacy Policy - pdf
The WSU Foundation operates in accordance with the Donor Bill of Rights - pdf