Administrative Fee

A five percent administrative fee is applied to some gifts.

Frequently Asked Questions

How is my gift used?

There are five choices to ensure students and faculty have the resources for robust scholarships and programs.

  • Designated
  • One time
  • Endowment
  • Recurring
  • Multi-year

What are the fees?

Annual distributions up to five percent are allocated from endowments where the market value exceeds the original gift. Of that five percent, three percent supports the endowment’s specified purpose, one percent supports administrative costs and one percent is set aside as a reserve to provide program funding in years that market declines may prohibit a distribution. When the reserve balance reaches two years of program-projected expenditures, the one percent reserve distribution is no longer taken and the total distribution does not exceed four percent.

A five percent administrative fee is taken on non-endowed gifts.

How often will these fees be assessed?

The fee will be assessed annually on endowed gifts. Non-endowed gifts will be assessed a fee at the time the gift is made.

Why is it necessary?

The state of Washington continues to decrease higher education funding, as a result Clark College Foundation is asked to do more. To support the college’s initiatives, the foundation seeks funding for student scholarships, facilities and resources. Discretionary monies are needed for the operation of the foundation, from supplies and utilities to employee wages. The fee is an investment in the foundation to ensure that it has the resources to maximize its efforts in fundraising for Clark College.

Does this fee change my tax write-off?

No. The entire gift supports the mission of the foundation and is considered a charitable gift for tax purposes.

Other nonprofits don’t charge administrative fees. What is the difference?

Although other nonprofits may not have explicitly defined administrative fees, the difference is one of terminology. All nonprofits require funding to support operations (salaries, utilities, rent, software, etc.) and further their mission. Typically, a portion of the contributions is used to support these operations whether or not an administrative fee is identified.