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Fee Policy
The Calhoun County Community Foundation assesses fees for the costs associated with investing, administering and distributing charitable funds. Thus, the Foundation has a two-tiered fee structure comprised of an administrative fee and an investment fee. Both are defined and clarified below. All fees are charged directly to the fund balance. There are no set-up fees or expenses required in establishing a fund with the Community Foundation.
Administrative Fee
The administrative fee is 1% and is charged annually to each fund of the Community Foundation except the funds named below.
Administrative fees cover the expenses of investment review in that the Community Foundation is ultimately responsible for the monitoring of all funds regardless of the financial institution providing investment services. This fee also covers the expense of public reporting, including the annual audit and Internal Revenue Service reporting requirements. Most funds contain a grant making component or annual distribution to a qualified charitable organization. The administrative fee includes the basic services associated with the grant review and allocation process. This fee is assessed annually on October 1 and is based on the market value of each fund.
Non-Endowed Charitable Fund
These funds which promote or support the general charitable good of the community are established as a service of the Foundation. An administrative fee of 2.5% is charged for all pass-through or non-endowed contributions. In addition, these funds are charged a graduated fee of 0.5% for every twenty contributions processed by the Foundation; however, this processing fee is capped at 5%. Since these funds are structured to distribute their assets, there is no investment fee collected on a non-endowed fund.
Institutional Endowment Fund
The board of a qualified nonprofit organization, institution or agency may establish an Instutional Endowment Fund with the Community Foundation. These funds, contributed by the initiating organization, will be assessed an annual administrative fee of 0.75%. There is an additional 0.75% fee charged if the organization requests that the Foundation process individual donor contributions, memorial cards and applicable IRS letters.
Many nonprofit organizations establish additional sub-endowments that support various designated charitable purposes. The Foundation can accommodate these administrative and accounting needs; however, there is a 0.5% fee charged for every five sub-endowments formed by the nonprofit organization.
Scholarship Fund
Scholarship funds require ongoing administrative tasks related to establishing guidelines, promoting the award, reviewing applications, creating certificates, engraving medallions and monitoring student performance in accordance with the donor’s intentions. Therefore, all active endowments established for the purpose of providing scholarships or financial aid to accredited educational institutions are assessed a 1.75% annual administrative fee. Scholarship funds that are in the process of being fully funded are assessed a fee of 0.75%.
Supporting Organizations
Supporting Organizations are component funds of the Community Foundation; however, they operate much like a private foundation or family foundation. The Community Foundation assesses an annual administrative fee depending on the services requested. For more details please see the Supporting Organization Guidelines and the Supporting Organization Services documents.
Estate Gifts
Bequests, trusts or contracts that establish a designated fund and do not include an unrestricted contribution to the Community Foundation are assessed a 5% administrative fee which will be used to support the Foundation’s unrestricted grantmaking mission.
Additional Fees
Funds that require additional administrative services, such as board support, program development, consultants, accounting, donor support, printing or marketing, are assessed an additional fee based on the actual cost of the service.
Investment Fee
Each fund of the Foundation benefits from the professional management of donated assets. Likewise, each fund, regardless of its asset size, shares in the same low investment fee of 0.85% and all funds participate in the same diversified portfolio. This annual investment fee is collected quarterly. Also, this fee includes or “wraps” custody, trade, investment and management services into one fee.
Foundation Oversight
The Foundation’s Finance and Investment Committee selects and monitors the investment managers, provides monthly oversight, quarterly reviews and annual evaluations. Third-party consultants are periodically retained to conduct an objective and comprehensive review of all managers. Foundation assets are broadly diversified based on the Investment Objectives and Policies. This document also provides the investment managers specific directions related to allocation percentages and classification standards. All funds and contributions to the Foundation are invested based on this policy; however, funds transferred to the Foundation with separate restrictions are invested based on the trust document directives.
Currently, the Community Foundation utilizes the professional financial services of The Trust Company of Sterne, Agee & Leach located in Birmingham. The Trust Company has served as investment manager since January 1997.
Operating Budget
Administrative fees are the only assets used to support the day-to-day operations of the Community Foundation. The staff, with oversight from the Board of Trustees, ensures the sound and responsible administration of the Foundation. Annually, administrative fees exceeding annual operating costs are transferred to The Longleaf Fund, the Community Foundation's unrestricted fund, which makes grants to worthy community projects or programs.
Policy Revisions
This policy is not a contract between any individual or institution and the Calhoun County Community Foundation. The Board of Trustees may amend or revise this policy as necessary.
For more information, email us at: info@yourcommunityfirst.org
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