Disclosure of Fees and Assessments
The Washington State University Foundation imposes small fees or assessments on gifts and on our endowment. The purposes of these assessments vary. Some assessments are used to recoup specific charges by third party vendors per contract(s) for various services. Others recoup expenses incurred by the WSU Foundation during the ordinary course of business. The WSU Foundation also applies these assessments and fees to create the revenue stream to cover a portion of its operating expenses.
A 5% advancement fee is applied to gifts processed by the WSU Foundation to help offset direct operating costs related to soliciting, processing and stewarding private contributions, and to provide the resources necessary to encourage greater philanthropic support for Washington State University.
Upon receipt of a gift, the Foundation will deduct the one-time advancement fee from the amount gifted. While the fee will have only a minor effect on individual funds, its collective impact will encourage sustained growth in private support across the University.
Effective July 1, 2017, the advancement fee will be applied as follows:
- 5% on all gifts up to $5 million.
- For gifts greater than $5 million, the advancement fee will apply only to the first $5 million of the total gift. The maximum amount of the advancement fee assessed on a single gift shall not exceed $250,000.
- For pledges processed on or before June 30, 2017, pledge payments will not be assessed the advancement fee.
Annually, a 1.5% Advancement Assessment is charged to the WSU Foundation Endowment. This assessment is paid out quarterly and is calculated based on the 36-month rolling average of the Endowment’s market value.
There are other costs associated with the Endowment such as investment management assessments, custodial costs, and consulting expenses. The WSU Foundation contracts with Mercer LLC for investment consultant services. Note: All performance figures of the WSU Foundation Endowment are net of expenses.
A 5% advancement fee (described above) will be assessed on all testamentary and matured planned gift distributions upon receipt.
MANAGEMENT AND ADMINISTRATION ASSESSMENT
The WSU Foundation contracts with TIAA Kaspick for asset management and administration of its planned gift assets. These planned gift assets include Charitable Gift Annuities, Charitable Remainder Trusts, Charitable Lead Trusts. The assessments for WSU Foundation and TIAA Kaspick’s service are charged to the appropriate trust or annuity pool directly.
Assessments are charged against the gift annuity pool or trust principal, respectively. TIAA Kaspick invests in mutual funds, and the mutual fund expense ratios are a separate assessment charged to the gift annuity pool or trust principal.