Gift administration fee FAQs

What are gift administration fees? Which gifts are subject to the gift administration fee?

The University Foundation at Sacramento State collects a 3 percent gift administration fee on all new gifts to the Foundation. The fees are used to support the costs the University incurs to raise and administer donor funds. Additionally, an ongoing annual recurring fee is charged to expenditure funds at the lesser of the investment return or 1 percent of market value of investments from the expenditure funds, which will be taken from investment earnings.

How are gift administration fees applied?

Donor gifts are managed by a volunteer Board of Directors, each selected for his or her professional expertise and support for Sacramento State, who oversee the management of assets to ensure gifts are invested prudently and distributed in accordance with donor wishes. It has been the policy of the University and the Foundation to assess a fee on current gifts and grants to support the cost of raising and administering funds.

When did the University change its gift administration fee?

Effective July 2016, the administration fee for new gifts increased from 1 percent to 3 percent to cover costs for Sacramento State’s fundraising operations. The University Foundation at Sacramento State’s volunteer Board of Directors voted on this change and review it annually.

Why are gift administration fees necessary?

The gift administration fee provides income to defray the important and necessary costs associated with fundraising, including accounting services and bank fees as well as donor stewardship and cultivation efforts such as publications and the From Dreams to Degrees scholarship reception.

How will the gift administration fees be used?

The administration fee is applied to all gifts and allows the University to create the necessary infrastructure the Advancement program requires for successful development efforts, including accounting services and bank fees as well as donor stewardship and cultivation efforts such as publications and the From Dreams to Degrees scholarship reception.

How do other universities support their fundraising efforts?

Many public universities and their institutionally related foundations use gift-related revenue to fund development programs and campaigns. Some institutions have had such a system in place for more than 20 years and fees range up to 13 percent. Eighteen California State University campuses have gift administration fees with most fees in the 5 percent range. All 10 University of California campuses have gift administration fees.

Sacramento State’s gift administration fee provides income to defray the important and necessary costs associated with fundraising including accounting services and bank fees as well as donor stewardship and cultivation efforts such as publications and the From Dreams to Degrees scholarship reception.­­­­

How does the gift administration fee benefit the University?

Each gift directly benefits the school, college, program or students for which it is targeted. A small portion of each donation—the 3 percent gift administration fee—is used to invest in the University’s ability to reach out to other alumni donors and friends who, in turn, support Sacramento State’s ability to provide more for students and programs.