The MSUB Foundation & Alumni is an independent 501(c)(3) organization committed to raising funds for the benefit of MSU Billings. To maintain its operations, the Foundation collects fees in accordance with MSUB Foundation & Alumni Board of Directors Policy.
To ensure the professional management and long-term health of the MSU Billings Foundation & Alumni in its support of MSU Billings, all gifts will be assessed an administrative and/or management fee. Administrative fees partially recover a portion of the costs incurred in raising and managing gifts and investments. These fees are designed to assist the Foundation & Alumni in:
- maintaining over 1,000 distinct funds
- building and maintaining relationships with donors and prospective donors
- providing receipts for all donations
- processing the collection of all gifts (cash, check, credit card, and stock gifts)
- reporting on all contributions and disbursements to academic and campus units
- processing all checks and vetting each disbursement request against established criteria
- stewarding donors via acknowledgments, special events, and communications
- providing donors with endowment and stewardship recipient reports which show all fund activity in each fiscal year.
Development fee
The MSUB Foundation & Alumni assesses a one-time 5% development fee on all restricted gifts including: bequests, scholarships, endowed gifts, non-endowed scholarships, and non-scholarship gifts.
Endowment administrative fee
A 1.70% annual Administrative Fee is charged on the MSUB Foundation & Alumni endowment funds.
Our Asset Management Firm is Common Fund.
The fee is assessed and charged quarterly and is based on the weighted average of the past twelve quarter end balances of each endowed fund.
An endowment is a permanent fund established at the Foundation by the benefactor. The MSUB Foundation & Alumni will hold gifts to endowment funds in perpetuity.
The MSUB Foundation & Alumni Board of Directors has adopted an Investment and Distribution Policy Statement to provide guidance to the Foundation’s investment managers and to govern annual endowment distributions. The Board of Directors is responsible for hiring and evaluating investment managers within the policy’s guidelines.
*The management fee will not be assessed until the Foundation has invested the assets for a full twelve-month period.
other Fees
The administrative fee assessed on restricted annual fund gifts is based on the appeal through which the gift is solicited. Examples of appeals could include Jacket Giving Day and Wine & Food Festival. The relative cost of each appeal is factored into the administrative fee that is assessed subject to advisement from the Executive Committee of the MSUB Founation & Alumni Board of Directors, should it be deemed necessary to exceed 5%.
The MSUB Foundation & Alumni accepts major credit cards for gifts and strongly encourages donors to cover the credit card fees to ensure that 100% of their donation directly supports the cause. Donors are advised that if they choose not to cover credit card fees, the fee cost will be deducted from the total gift amount.
Liquidation fee
A 10% liquidation fee is assessed on the sale proceeds net of expense incurred on the sale of the tangible property.
GUIDELINES FOR NAMED ENDOWMENTS & ANNUAL SCHOLARSHIPS
The MSUB Foundation & Alumni requires that named endowments attain a minimum investment of $25,000 that may be given in one sum or spread over five years in annual contributions. One year after the $25,000 level is reached, the Foundation will distribute from the endowment using a three-year moving average method to determine year-to-year distributions in order to smooth distributions for the benefactor’s preferred scholarship or program. Current endowment distribution rate is 4%.
The MSUB Foundation & Alumni requires that named annual scholarships attain a minimum investment of $10,000 that may be given in one sum or spread over four years in annual contributions.