Gift Fees in Practice: A Candid Conversation on What Really Works-Presentation

Presentation

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This presentation discusses practical approaches to gift fees in community college foundations, focusing on how fees can support sustainable operations while remaining donor-aware. Zak Boone and Lana Fontenot share data, benchmarking, and examples from their institutions: COCC Foundation and Foundation for SoLaCC.<br /><br />Key themes include the realities that many community college foundations face: small staff, limited unrestricted funds, significant scholarship administration, compliance demands, and increasing stewardship expectations. The presenters argue that philanthropy is not free to administer, and that gift fees can help cover real costs such as reporting, investment oversight, database management, audit work, and scholarship administration.<br /><br />Benchmarking suggests that endowment fees are common, while non-endowed gift fees vary widely. Non-endowment fees typically range from 3% to 10%, with many community colleges landing in the lower-middle range to remain donor-friendly. NACUBO/CommonFund data is also referenced for endowment assessments.<br /><br />The presentation compares two institutional models. SoLaCC assesses a 1% annual endowment management fee and is considering introducing a 5% fee on non-endowed restricted gifts, with governance backed by board approval, policy language, and donor disclosure. COCC Foundation uses a 1% endowment fee and a 10% fee on non-endowed gifts, with no fee on endowment establishment or additional contributions.<br /><br />They emphasize transparency, careful communication, internal alignment, and thoughtful policy design. Pros of fees include predictable unrestricted revenue and better alignment between fundraising and administrative costs. Cons include donor perception issues, messaging complexity, institutional resistance, and potential negative effects on small gifts.<br /><br />Main takeaway: there is no one-size-fits-all solution. Foundations should assess their needs, board appetite, peer feedback, and consider piloting changes before full implementation.

Keywords

community college foundations

gift fees

endowment fees

donor stewardship

philanthropy administration

restricted gifts

benchmarking data

foundation policy

unrestricted revenue

donor communication