Transforming the university into a higher level of national prominence is one of the goals of UMKC. To help achieve this goal, UMKC must increase contributions from private sources, especially as the state of Missouri continues to face revenue shortfalls and is unable to provide additional funding for higher education.
The UMKC Foundation continually develops strategies to enhance funding from private sources, including individuals, corporations and foundations, in order to invest in the university and its transformative goals. Effective July 1, 2010, a non-endowed administrative gift fee of 1% was approved for implementation as part of the funding strategy to build capacity for increased private donations to UMKC. At the same time, the other three campuses within University of Missouri (UM) System approved an administrative fee of 5%.
The non-endowed administrative gift fee is one of several resources identified to support university fundraising efforts. Others include direct university support, an endowment management fee and the option of special allocations from the university’s governing board. Effective July 1, 2019, UMKC will join the other UM System campuses by increasing the administrative fee to 5%.
NOTE: Donors will receive credit for the full amount of their gifts.
Annual Endowment Management Fee
Beginning July 1, 2017, the University of Missouri Board of Curators approved an annual endowment management fee of 1.25% of the fair market value of the endowment as of December 31st of the prior year. The UMKC Foundation adopted this same fee structure for all UMKC Foundation administered endowments, effective July 1, 2018.
Non-Endowed Administrative Gift Fee
Beginning July 1, 2019, a 5% non-endowed administrative gift fee will be assessed on all new gifts or payments on new pledges. Charitable gift annuities, charitable remainder trusts, charitable lead trusts and non-cash gifts are excluded from the gift assessment unless specifically authorized by the donor. For this policy, gifts of securities are considered cash gifts and are subject to the fee.
UMKC Foundation Use of Fees
It is the intent of UMKC and the UMKC Foundation, as its primary fundraising arm, to use fees to assist in continuing to increase the quality of service in areas of gift processing, financial administration, prospect research, improved data, and increased outreach to alumni and prospective financial supporters of the university.
Many universities nationwide include a gift fee assessment over and above indirect costs. Grant making associations, corporations and foundations have been supportive of this action as they consider this practice an investment in future advancement efforts of the organization.
These fees will help generate the assets needed to meet the increasing demands for private support to the University and to support the rising costs related to private fundraising. It will allow for the necessary expansion of its fundraising initiatives and development efforts. Without the efforts of Advancement in obtaining these funds, there would be far fewer private gifts to the university, resulting in fewer scholarships, fellowships, programs and research funds. These funds are essential in the efforts to transform UMKC to a higher level of excellence.