Fees and Assessments Disclosure
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 are designed to recoup expenses incurred by the WSU Foundation during the ordinary course of business. Assessments and fees are also imposed to create the revenue stream to cover a portion of the WSU Foundation’s operating expenses.
Assessments and fees are subject to change without notice. If you have questions about the WSU Foundation’s fee and assessment structure, please call 800-448-2978.
ADVANCEMENT FEE: Effective July 1, 2017, a 5% advancement fee will be applied to gifts processed by the WSU Foundation to help offset the operations costs related to soliciting, processing and stewarding private contributions. The advancement fee will improve the capacity to grow private giving to Washington State University. Revenue generated by the advancement fee will help offset direct operating costs related to soliciting, processing and stewarding private contributions, and provide the resources necessary to reach out to more WSU alumni, friends, and business partners to encourage philanthropic support for Washington State University.
Upon receipt of a gift, the Foundation will apply the advancement fee to 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 applies 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.
- The advancement fee will not apply to gifts and written pledges received and processed before end of business on June 30, 2017.
ADVANCEMENT ASSESSMENT: 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.
MANAGEMENT ASSESSMENT: 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.
MANAGEMENT & ADMINISTRATIVE ASSESSMENTS: 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 assessments for WSU Foundation and Kaspick & Company’s service are charged to the appropriate trust or annuity pool directly. Assessments for Donor Advised Funds (DAFs) are negotiable. Assessments 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 assessment charged to the gift annuity pool or trust/DAF principal.
CLOSING ASSESSMENT: NOTE: Effective July 1, 2017, the closing assessment will be abolished. A one-time 3% assessment is taken from each estate distribution, distributions from life insurance, and retirement plans, as well as bank and brokerage or other accounts with financial organizations. This assessment also applies at the termination of Charitable Remainder Trusts and Gift Annuities whether terminated voluntarily by the income beneficiary, per trust language, or at the death of the last income beneficiary.