Administrative Service Charge (“ASC”)
Effective July 1, 2005
The ASC schedule most recently approved by the Foundation’s Board of
Directors is as follows (examples are included).
Five percent on each dollar received (the “Deposit ASC”).
If $1 million is received, $50,000 is retained by the Foundation as ASC, and
the designated account has $950,000 to be invested in the applicable Foundation
investment pool. The funds in the account must be spent in accordance with the
donor-designated purpose or for the purpose of the account. If endowed funds
are involved, the $950,000 should never be spent, except if needed and as
authorized by the donor for the annual endowment payout.
The Deposit ASC is assessed when cash is received by the Foundation. For
example, a $2 million pledge spread over four years would result in an annual
Deposit ASC of $25,000 in each of the four years.
It is the policy of the Foundation to convert all non-cash gifts (e.g.,
equities, real estate, collectibles, etc.) to cash as soon as practical. Deposit ASC is assessed on the total gross cash value of the gift, before
deducting any expenses incurred in converting the gift to cash.
Excluded from the Deposit ASC are any funds received from the state of
Washington (e.g., exceptional faculty endowment), funds received from the United
Way, or any other gifts excluded by the Foundation’s Board of Directors.
One and one-half percent (1.50%) on the market value of each actively managed
endowment (the “Endowment Market Value ASC”.
The Foundation maintains both endowed and non-endowed accounts, and the cash
of each of the two types of accounts is invested in separate investment pools. The Foundation’s Board of Directors may from time to time create accounts that
are funds functioning as endowments (FFE). These accounts are assessed the 1.5%
Endowment Market Value ASC. The Endowment Market Value ASC is assessed
quarterly.
Endowments may hold assets that are not actively managed, such as contracts
or accounts receivable, that generate interest income. Such assets are not
included in the market value of the endowment for the purpose of calculating the
Endowment Market Value ASC.
100% of the total investment returns from the non-endowed accounts.
The Foundation maintains both endowed and non-endowed accounts, and the cash
of each of the two types of accounts is invested in separate investment pools. The Foundation retains all of the total investment return on the non-endowed
accounts.
Authorization
The CBC Foundation’s Administrative Service Charges were established by the
Board’s Executive Committee at an October 2, 2001 meeting. The ASCs are
implicitly renewed each year with the approval of the annual budget.
The Foundation has established its ASC to provide operating budget
funds.