Guidelines for Charging Fees to Gift Funds

Purpose

It is important that we have in place a set of guidelines for campus units regarding such fees/assessments to clarify what type of gifts might be assessed, acceptable rates of assessment, and use of any fees collected.

Scope

All units on the Urbana-Champaign campus

Authority

The policy originated in the Chancellor’s Office with enforcement review completed by the Provost’s Office.

Policy

Often academic and administrative units are the beneficiaries of gifts to support activities within their units. As gifts, the management and stewardship of these funds requires significant administrative costs. These funds can be used for salaries, supplies, equipment and travel. Such uses require the time and effort of administrative staff to process appointments, facilitate payroll, process requisitions and vouchers and help schedule meetings and travel. Currently, some departments assess fees against these funds to help offset the cost of services that are provided to manage and facilitate the use of these gift funds.

It is important that we have in place a set of guidelines for campus units regarding such fees/assessments to clarify what type of gifts might be assessed, acceptable rates of assessment, and use of any fees collected. Beginning December 1, 2011, the following guidelines will be in place:

  • Units may elect to charge an administrative fee on current use research gifts from corporations or other organizations where it can be demonstrated that administering the funds will require significant administrative resources to carry out the intended purpose of the gift.
  • Units should include in the original gift agreement negotiated and signed by the donor a statement that clearly indicates an administrative fee might be assessed for administrative services related to management of the gift. Alternatively, the letter of acceptance of the gift can indicate that an administrative services fee will be assessed against the gift. Such fees may be assessed at the option/discretion of the unit, primarily depending upon the amount of administrative services that will be required. Such fees may be charged in an amount up to 10 percent depending upon an assessment of the amount of unit support resources required. It is important that funds collected be used in a manner consistent with the purpose for which they were assessed.

Contact

Provost’s Office, (217) 244-4545