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Fees & Assessments
WVU Foundation, Inc. Disclosure of Fees and Assessments
WVU Foundation (WVUF) fees support operations related to soliciting, processing, managing and stewarding private contributions. Fees also provide for reinvestment in development operations to grow overall philanthropic support for WVU and its affiliates. Fees have only a minor effect on individual funds. However, their collective impact encourages sustained growth in private support across the University.
Effective July 1, 2020, an advancement fee of 5% will apply to gifts where applicable. The maximum amount of the advancement fee assessed on a single gift shall not exceed $250,000. WVUF recognizes the full contribution amount for donor tax credit purposes and for donor recognition programs. Testamentary and matured planned gift distributions and real estate and mineral sales proceeds are subject to the advancement fee. Refer to the Frequently Asked Questions document for more information on the advancement fee.
(*The advancement fee was approved by the WVU Foundation Board of Directors in August 2019. Its adoption is not in response to financial challenges presented by the COVID-19 pandemic.)
Endowment Management Fee
Endowments are invested by pooling the funds together in a manner like a mutual fund. The pooled investment fund is managed by professional investment managers and is broadly diversified across asset classes/investment managers. The Foundation charges a 1.35% annual endowment management fee to help support Foundation operations. Other costs associated with the WVUF Endowment include investment management assessments, custodial costs and consulting expenses. All investments are overseen by the Investment Committee of the WVUF Board of Directors.
Planned Gift Fees
Gifts received from estates, trusts, beneficiary designations, and other planned gifts are subject to the advancement fee if we were not aware of the gift by July 1, 2020.
Life income gifts, including charitable gift annuities and charitable remainder trusts, are not subject to the advancement fee at the time of the initial gift. However, the fee is assessed on the final proceeds received at the conclusion of the life income contract.
Externally, if WVUF is the trustee of a charitable remainder trust, those accounts are charged a 0.64% annual investment management fee as well as a $600/year tax preparation fee by the State Street Charitable Asset Management Group.
Fee disclosure language will be included in gift documents, proposals, pledge forms, fund agreements, receipts and stewardship reports. Appropriate disclosure language for fund raising literature is as follows:
“A portion of all donations is used to further advancement efforts on behalf of West Virginia University.”
The Foundation fee
structure is reassessed periodically to align with national best practices,
evolving funding models and to ensure consistent application.