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UToledo Foundation Board of Trustees Approves Administrative Fee Changes

November 2024 - At its June 21, 2024 meeting, The University of Toledo Foundation Board of Trustees approved the implementation of an administrative fee for non-endowed gifts to be assessed beginning January 1, 2025.

As the University’s budget continues to be challenged, increased philanthropic support is more important than ever. But like businesses everywhere, costs continue to increase. We are not immune to the effects of inflation. In addition, it is important to invest in more people and in leading edge technology in order to provide more philanthropic support to the University.

Currently, the Foundation’s main source of operating support is an annual administrative fee that is assessed on all endowed funds. This fee rate is tiered and begins at 1.4%. The new fee is in addition to the administrative fee and will only be applied to non-endowed gifts.

The new fee will be assessed as follows:

• 5% on all non-endowed gifts up to $1 million.
• 3% on the portion of a non-endowed gift that exceeds $1M but is less than $5M.
• No fee will be assessed on the portion of a non-endowed gift that exceeds $5M.

This type of fee is common in the university-related foundation field. In fact, 99% of the respondents to the most recent National Association of College and University Business Officers Endowment (NACUBO) study reported assessing a gift fee as a source of budget support. The median rate assessed is 5%. Departments can pay the fee from departmental funds or, alternatively, the fee can be taken from the gifts they receive.

The Foundation’s fee structure is periodically reviewed and approved by the Foundation Board of Trustees. It is possible that as the value of our assets grow, there may be future reductions in the fees.

We realize the impact that this may have with our campus partners and donors. However, we feel that this action is necessary to support the work of the Foundation, which ultimately supports the work of the University.