2b: Gift Policies – Gift Fee Policy

  1. Purpose
    This policy establishes the framework for assessing and managing fees on gifts and funds held by the Portland Community College Foundation (hereinafter “the Foundation”) to ensure sustainable operations and effective stewardship of donor contributions in support of Portland Community College.
  2. Scope
    This policy applies to all charitable contributions received by the Portland Community College Foundation, including but not limited to annual funds, endowed funds, scholarships, and program funds.
  3. Policy Governance
    1. Authority
      1. The Board of Trustees has ultimate authority over fee policies and structures.
      2. The Board must approve all changes to fee rates and assessment methodologies.
    2. Review and Updates
      1. Foundation staff shall:
        • Conduct regular evaluations of administrative and investment management fee structures.
        • Document evaluation findings.
        • Present recommendations for changes to the Board.
      2. The Executive Director shall ensure evaluations occur at least annually.
      3. All policy updates must be:
        • Formally documented;
        • Approved by the Board; and
        • Communicated to all affected relevant parties
  4. Fee Structure and Requirements
    1. Administrative Fees
      1. Annual Funds
        • An administrative fee of 5.0% shall be assessed on all donations to annual funds.
        • This fee supports the Foundation’s operational costs for fund management and program administration.
      2. Endowed Funds
        • An administrative fee of 2.0% shall be assessed annually on both: a) The principal balance of endowment funds; and b) All affiliated accumulated earnings.
        • This fee supports the Foundation’s operational costs for endowment management and program administration.
      3. Historical Note on One-Time Gift Fees
        • Previous policies regarding one-time fees on temporarily restricted contributions have been discontinued.
        • All current fees are structured as annual assessments as described above.
    2. Investment Management Fees
      1. The fee shall be allocated based on the combined value of:
        • The endowment principal; and
        • All affiliated accumulated earnings.
      2. The specific fee calculation methodology shall be agreed to in the investment partner agreement.
    3. Fee Exemptions
      1. Grants or contracts from government agencies may be exempt if prohibited by funding terms.
      2. Private foundation grants may be exempt if prohibited by funding terms.
      3. The gift acceptance committee is empowered to reduce the 5% administrative fee on gift commitments of $1,000,000 or greater, with a lower bound of 2%. This decision will be made at the time of the gift acceptance and to account for the complexity of managing the gift.
      4. All exemptions must be documented and approved by gift acceptance committee.
  5. Accountability and Compliance
    1. Donor Communication
      1. The Foundation shall maintain transparency regarding all fee structures.
      2. Donors and Fund Agreement contacts shall be notified of:
        • Changes to fee policies;
        • Changes to Foundation procedures affecting their funds; and
        • Relevant regulatory changes impacting their funds
    2. Documentation
      1. All fee assessments shall be properly documented in the Foundation’s financial records.
      2. Regular reports on fee collection and utilization shall be provided to the Board.
      3. Fee policies shall be included in appropriate governance documents.
  6. Implementation
    1. Procedural Requirements
      1. Detailed procedures for fee assessment and collection shall be maintained in a separate operational manual.
      2. Staff shall be trained on proper fee assessment procedures.
      3. Regular audits shall ensure compliance with fee policies.