New UF Foundation Fee Policy

Paul A Robell, Vice President

The Foundation has recently completed an in depth review of its fee assessment policies. As you are aware, fees are the primary source of funding for the operation of the Office of Development and Alumni Affairs. I am happy to report that the Foundation Board of Directors has approved the following changes to the fee policy (a copy of the new schedule is attached):

Effective January 1, 2001

The fee assessed on new gifts will be reduced from 3.5% to 2.5%.

The fee assessed for receipt of non-gift monies will be reduced from 3.5% to 2.5%.

The fee assessed for new gifts designated for the facilities state match program will be reduced from 3.5% to 1.0%.

Effective July 1, 2001

The 7.0% fee assessed on rental and mortgage note collections will be eliminated.

The fee currently assessed on real estate held for resale will also be assessed on other income producing assets (i.e. Notes Receivable).

Fee Collection Schedule for Endowment Gifts (also effective July 1, 2001)

We will implement a change in the collection of the gift fee for endowment gifts. Currently, cash available in the spendable fund is first applied to the repayment of the gift fee, resulting in no spendable dollars for the fund’s designated purpose for a number of quarters.

The new policy will create a payable in the spendable fund to reflect the obligation for the gift fee assessment. As quarterly spending distributions are made to the spendable fund, up to one-half of the distribution will be applied to the retirement of the payable. The remainder of the quarterly distribution will be available to support the fund’s designated purpose. This means that money will be available from the end of the first quarter in which the fund is invested in the endowment pool. This also means that subsequent gifts to a fund and the related gift fee assessment will not have as significant an impact on the amount available to spend.

The above changes should result in more money being available for the fund’s designated purpose and in money being available sooner for endowment funds.

Should you have any questions concerning the Foundation’s fee policy, please contact me (392-5407, probell@uff.ufl.edu) or Kenneth Hillier (392-5958, khillier@uff.ufl.edu).