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

Video Transcription

Video Summary

The webinar, hosted by CASE’s Meg Natter, featured community college advancement leaders Lana Fontenot and Zach Boone discussing gift fees, especially for endowments and general gifts. The presenters emphasized that there is no universal model: fees vary widely by institution, board appetite, donor base, and fundraising needs.<br /><br />They shared survey data showing many community colleges charge endowment fees, typically around 1% to 2%, while fewer charge fees on general gifts. Zach’s institution, Central Oregon Community College Foundation, uses a 1% annual endowment management fee and a 10% fee on all gifts, with unrestricted fundraising used to backfill scholarship amounts so students receive the full intended award. Lana’s South Louisiana Community College Foundation began charging a 1% annual endowment fee in 2022 and is planning a 5% fee on restricted gifts, but does not currently backfill in the same way; instead, the donor may be asked to add a small amount on top of the scholarship gift.<br /><br />Both speakers framed gift fees as a sustainability strategy, not just a revenue tactic: they help cover staffing, auditing, stewardship, compliance, database systems, and other real costs of administering philanthropy. They stressed the importance of transparency, board approval, clear policy language, donor communication, and consulting external experts or peer institutions. Key takeaways: know your needs, start with a pilot if needed, align fees with your budget cycle, and use language focused on impact and sustainability rather than overhead.

Keywords

gift fees

endowments

community colleges

fundraising sustainability

donor communication

board approval

endowment management fee

restricted gifts

scholarship backfill

philanthropy administration