Administrative Fee Policy

Mission

The Colorado Mountain College Foundation (Foundation) builds sustainable community support for the needs and strategic priorities of Colorado Mountain College and its students.

Purpose of the Policy

As the facilities and programs of Colorado Mountain College (College) expand, the role of the Foundation is critical. Fundraising at the Foundation not only includes soliciting contributions, but also gift processing and accounting as well as donor stewardship. Hence, to recover a portion of the Foundation’s management costs, an administrative fee will be assessed for all gifts. The Foundation also serves as a Fiscal Agent for Government and Complex Grants the College receives, for which an administrative fee is required to ensure sound reporting and programmatic management.

Definitions

Fund Types

• Current Use Fund: a fund established to receive and expend gifts intended by the donor to be used for current purposes or programs; a fund that is not an endowment.
• Endowed Fund: a fund established to receive and invest gifts made by donors with a portion of the earnings used for restricted or unrestricted purposes. An endowed fund protects the gift in perpetuity by responsibly investing the principal (corpus) and distributing an annual payout realized from a portion of the investment income allowing the fund’s real value to increase over time.

Gift Types

• Gift: the charitable and irrevocable transfer of money or property given voluntarily. Gifts may be designated for specific purposes and the donor may require reporting on the use of gifted funds, but they may not require returns be they financial, or real or intellectual property. Some gifts may receive naming recognition.
• Grant: A grant is essentially synonymous with a gift except that they come from a charitable foundation or corporation.
• Government Grant: A grant that is resourced via State or Federal funding.
• Gift-in-kind: the charitable and irrevocable transfer of tangible property given voluntarily. These transfers are motivated by something other than consideration or expectation of financial return or contractual obligation.
• Pledge: the promise of a gift made legally binding by signed agreement.
• Program Income: funds appropriately received by the Foundation to further a program of the University and Foundation, which are not philanthropic, including, but not limited to ticket sales, membership, royalty payments, sales of tangible property, and sponsorships.

Policy

To offset the costs of fundraising, gift management, administration, and scholarship support the Foundation will assess a one-time administrative fee upon receipt by the Foundation.

For non-Governmental Grants, and Gifts or Grants that do not require extensive grant reporting requirements and/or program coordination, the administrative fee is determined as a percentage of the contribution according to the following sliding administrative fee scale:

Gift Amount

• > / = $500,000 has a 3% Administrative Fee Rate
• $100,000 - $499,999 has a 4% Administrative Fee Rate
• < / = $99,999 has a 5% Administrative Fee Rate

Gifts or Grants from College or Foundation employees are exempt from administrative fees. To offset Grant report requirements and Program Coordination requirements of Government Grants and/or complex non-Governmental Gifts or Grants, the CMC Foundation will utilize the 10% Federally allowed de minimis rate of 10%, or greater if allowed.

1. Where a grant or gift agreement between/among the relevant parties specifically addresses the administrative fee, the grant or gift agreement takes precedent with respect to the administrative fee.
2. Requests to waive the administrative fee must be approved by the Chief Executive Officer (CEO) of the Foundation in counsel with the Executive Committee (Committee) of the Foundation or the Committee Chair should the CEO determine that such counsel is necessary. Such approvals will be documented in writing. Any waiver must be in the best interests of the Foundation and the College.
3. The administrative fee will be disclosed to donors at the time of the gift.
4. The balance of the gift will be allocated to the intended purpose(s).

Changes to this policy
This policy has been reviewed and approved by the Foundation Board of Directors. The Board must approve any changes to or deviations from this policy.