FAQs: University Advancement Fee
How will the university advancement fee help K-State?
The university advancement fee will increase the capacity to grow philanthropic giving to Kansas State University. As state support for higher education continues to diminish as a portion of the budget, charitable giving becomes even more crucial to sustain K-State as a vital, thriving institution.
How will the university advancement fee be used?
Foundation staff members work in close partnership with university administrators, deans and faculty to secure charitable contributions from individuals, corporations and foundations to support identified priorities for the university. Funds generated by the fee will provide resources to enable the foundation to expand our capacity to reach out to more alumni and friends to encourage philanthropic support for K-State.
The university advancement fee, effective July 1, 2013, is applied according to a tiered structure:
• 5 percent on gifts up to $2 million
• 2.5 percent on the next $3 million ($2 million through $5 million)
• 1 percent on the next $5 million ($5 million through $10 million)
• 0 percent on next $10 million and above
While the fee will have only a minor effect on individual funds, its collective impact will result in sustained growth of philanthropic funding to the university.
Do other foundations have an advancement fee?
The KSU Foundation did extensive research and comparison prior to establishing the fee. Of the peer institutions with assets below $1 billion, 71 percent utilize a similar fee.
Does the advancement fee affect tax deductibility of my contribution?
The fee does not affect the deductibility of your gift.
Does the fee apply to Telefund and other annual gifts?
Yes, the advancement fee does apply, and 95 percent of your gift will go directly to support the area where you want to make a difference at K-State.
What about gifts made by credit card?
The advancement fee does apply. As a benefit to donors who make gifts with a credit card, the foundation will absorb any fees charged by your credit card company.
Does the advancement fee apply to endowed funds?
Yes, the advancement fee applies to endowed funds. It does not, however, affect the recognition and naming opportunities for funds and donors receive full credit for the contributed amount.
Does the advancement fee apply to expendable funds?
The advancement fee will be assessed on expendable funds and the remainder is available immediately for the intended purpose.
Does the advancement fee apply to pledge payments?
Payments on pledges established prior to July 1, 2013 are not subject to the advancement fee.9
Are there exceptions?
The university advancement fee does not apply to gifts-in-kind, with the exception of gifts that are converted to cash (such as securities and gifts of grain). In addition, because K-State Athletics pays for its own fundraising services, gifts to K-State Athletics will not be subject to the advancement fee. Gifts to the K-State Alumni Association operational accounts will not be subject to the fee.