Advancement Fee FAQ
The advancement fee is a one-time contribution to help sustain development activities in support of Washington State University’s educational, research and service mission. The 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. To be effective, fundraising requires financial resources to offset direct operating costs related to soliciting, processing and stewarding private contributions. Revenue generated by the advancement fee will help offset these costs 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 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.
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.
Not at all. The advancement fee is automatically deducted from the amount you choose to donate. You are not expected to increase your gift amount to pay the fee, although some may choose to do so. Five percent of your total gift will support fundraising programs across Washington State University, and 95 percent will directly benefit the WSU program you chose to support. You will receive full donor credit and tax credit for 100% of your total donation.
About 75 percent of peer institutions with endowment assets below $1 billion apply a similar fee, with those fees generally ranging between 4 and 10 percent.
The fee does not affect the tax deductibility of gifts and you will receive full credit for the total contributed amount.
Yes. The advancement fee applies to gifts and pledge commitments made to establish or contribute to endowed funds. It does not affect donor recognition or naming opportunities and donors will receive full credit for the total contributed amount.
Yes. Payments will be assessed the advancement fee.
The advancement fee applies to gifts made by credit card and gifts made by transfer of stock or securities. To simplify these transactions for our donors and to benefit the WSU area where these gifts are designated, the WSU Foundation will absorb any credit card processing fees assessed for those credit cards processed by the Foundation, as well as any processing fees associated with the transfer of stock or securities.
Yes. The advancement fee will apply to all recurring gifts.
Yes. Endowment minimums are based on the donor’s total gifted amount, and not the amount invested net of the advancement fee. For those endowments established on or after July 1, 2017, the market value of the fund at inception will be net of the 5% advancement fee, but the donor will receive full credit for the total contributed amount and the endowment will be established. More information about creating an endowment can be found here.
Yes. The advancement fee does apply for matching gifts.
If an in-kind, non-cash or real estate asset is sold and the net proceeds benefit WSU, then the advancement fee will be collected from the net proceeds received in the sale of that item. If the in-kind contribution or service is not sold then the advancement fee will not apply.
The advancement fee cannot be waived, but there are specific instances where the advancement fee will not apply. Gift revenue received from the Cougar License Plate program is exempt. This fee will not apply for a private foundation that has a written policy stating it will not pay gift fees. An advancement fee will not be applied to non-cash gifts (in-kind, service, real estate) that will not or cannot be sold.
Yes. A donor may choose to increase their gift amount to offset the advancement fee to ensure that more of their contribution is directed to the WSU area they wish to support. Gifts made to WSU online features an option to include an additional gift to cover the advancement fee that will automatically calculate the additional 5% contribution needed.