Menu
PoliciesAssessment Policy

The Foothill-De Anza Foundation policy was created in line with most other college and university foundations and development operations, in order to sustain the fund management and development activities that provide critical support to the colleges.

The Foothill-De Anza Foundation raises funds and manages the intake between $4 to 5 million in gifts to Foothill and De Anza colleges each year. The Foundation is also a good steward of more than $30 million in invested funds provided by donors to support students and programs on an annual basis.

Objective

Administrative cost recovery assessments are necessary to fund Foundation operating expenses. Costs are recovered to support the following services provided by the FHDA Foundation (aggregate list; not every service provided for every donation‐related account):

  • Accounts payable processing
  • Accounts receivable processing
  • Annual audit
  • Annual form 990 preparation
  • Automated accounting
  • Banking services
  • Cashiering
  • Check documentation
  • Contract preparation and review
  • Event management
  • Expenditure controls
  • Fund transfers
  • General cash administration
  • Gift acknowledgments
  • Gift processing
  • Investment management
  • Legal services
  • List management
  • Mailing services
  • Monthly bank reconciliations
  • Payment of credit card fees
  • Pledge collection services
  • Project management reports
  • Regulatory Reporting & Fee Payment (Secretary of State etc.)
  • Staff support


Exclusions

This policy does not apply to grant and contract accounts or internal transfers from accounts that have already met other administrative fee or overhead recovery requirements. The Board of Directors of the Foundation reserves the right to make exceptions to the policy.

Gifts

Incoming gifts will be assessed a 1.5% fee beginning July 1, 2011. Exceptions will include bequests, trusts and planned gifts, foundation grants, pass through grants and real property gifts (see below for assessment). In exceptional circumstances fees may be modified at the discretion of the Executive Director. The fee will be reviewed periodically, and will not be raised more than one percent every two years.

Bequests, Trusts and Planned Gifts

All bequests received by the Foundation will be subject to a 5% fee. Any legal, accounting, or other fees incurred by the Foundation in relation to the bequest will be deducted upon distribution of the estate.

Foundation Generated Proposals

Whenever possible, a minimum 5% fee will be built into proposals to foundations and corporations to support Foundation administrative costs.

Pass Through Grants

Grant funds not generated by the Foundation, that must utilize the 501(c)(3), will be deposited and held in the Foundation bank accounts until needed for transfer into District accounts. All realized and unrealized interest and income on the account will be used to support the Foundation's operating costs.

Real Property Gifts

A fee is charged for acceptance, sale and/or management of real property. The amount and type of fee is based on the circumstances of each property gift. The fee structure is similar to those of banks and trust companies providing services for the general public. Supplemental fees are applicable where the Foundation is involved in toxic waste matters, repair/improvement supervision, prolonged negotiations, litigation, condemnation proceedings and any other consulting services. Actual costs for required outside professional services are charged directly to the project based on actual services performed.

Gifts ‐ Other

Gifts other than cash or securities, which require extraordinary services, will be analyzed on a caseby‐ case basis and may be subject to supplemental fees in order to recover from the cost of acceptance, sale, and/or management of such gifts. In such cases, the Executive Director will seek approval from the Foundation Finance & Investment Committee to assess supplemental fees.

Approved by the Foothill-De Anza Foundation Board, June 29, 2011
Revised by the Executive Committee, March 13, 2013
Approved by the Foothill-De Anza Foundation Board, March 27, 2013

Back to Policies