Fees and Endowment Spending Allocation

Fees

All contributions to The University of Connecticut Foundation, Inc. are assessed certain administrative fees that are used to support Foundation operating expenses, as well as other priority needs determined by the school, college or unit receiving the gift.

Non-endowed Contributions
A five percent (5%) contribution fee is applied to all fully expendable (non-endowed) contributions.

Twenty-five percent (25%) of the contribution fee collected on a gift to a fully expendable fund will be transferred to unrestricted Foundation accounts supporting the school, college or unit responsible for the fund to which the gift was originally designated.

The remaining seventy-five percent (75%) of the contribution fee shall be applied to support the Foundation’s mission.

Endowed Contributions
A three percent (3%) contribution fee is applied to all gifts to endowed funds. Endowment funds are also subject to an annual endowment administrative fee of one and one-quarter percent (1.25%), based on the rolling prior 12-quarter average unitized market value of the long-term pooled investment portfolio, multiplied by the number of units held by each endowed fund on the calculation date. The full endowment administrative fee, as calculated, will be transferred to the Foundation’s operating funds in equal quarterly installments on the first day of each quarter in the fiscal year following the calculation date.

The contribution and administrative fees shall be applied to support the Foundation’s mission. For purposes of monitoring the long term purchasing power of your endowment contribution, our accounting policies exclude the amount assessed as the contribution fee from your original gift value, unless you object by contacting us at the address below within thirty (30) days of the date of your gift.

 

Endowed Fund Spending Allocation

The amount of funds allocated for expenditure for the purposes for which an endowed fund was established (“spending allocation”) will equal four and one-quarter percent (4.25%) of the rolling prior 12-quarter average unitized market value of the long term pooled investment portfolio, multiplied by the number of units held by each endowed fund on the calculation date. The spending allocation will be transferred to the endowed fund spending account in equal quarterly installments on the first day of each quarter in the fiscal year following the calculation date.

In the event that the sum of the calculated spending allocation plus the calculated endowment administrative fee (“total endowment expenditures”) is less than three percent (3%), or greater than six and one-half percent (6.5%) of the current market value of the endowed fund, then the spending allocation and the endowment administrative fee will be proportionally increased or decreased such that the Total Endowment Expenditures is increased to three percent (3%) or reduced to six and one-half percent (6.5%) accordingly.

 

Revisions to Fees and Spending Allocation

The endowed and non-endowed contribution fees cited above are in effect as of February 1, 2009. The spending allocation and endowment administrative fees cited above are in effect as of January 1, 2009. All policies are subject to periodic review and amendment by the UConn Foundation Board of Directors.

 

Contact Us

For additional information, please contact us at 800.269.9965 or contactus@foundation.uconn.edu.

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