Giving Policy
Operational Enhancement Charge
On October 25, 2022, the Point Park University Board of Trustees approved the creation of a 4% Operational Enhancement Charge on all restricted gifts. The fee applies to all gifts received by the University and will improve the capacity to grow private giving to Point Park University and help to underwrite scholarships and areas of greatest need. To be effective, the University requires financial resources to offset direct operating costs related to soliciting, processing, and stewarding private contributions. Revenue generated by the charge will help offset these costs, as well as provide the resources necessary to reach out to more Point Park alumni, friends, and business partners to encourage philanthropic support for Point Park University.
Upon receipt of a gift, the University will deduct the one-time charge from the amount gifted. While the charge will have only a minor effect on individual funds, its collective impact will encourage sustained growth in private support across the University. The University recognizes the full contribution amount for donor tax credit purposes and for donor recognition programs.
Effective October 26, 2022, the advancement fee will be applied as follows:
- 4% on all restricted gifts to the University (excludes Pioneer Fund and Bison Scholarship Fund, as they are discretionary funds).
Endowment Administrative Fee
Endowments are invested by pooling the funds together in a manner like a mutual fund. The pooled investment fund is managed by professional investment managers who must adhere to the Investment Policy Statement as defined by the Board of Trustees. The University will charge an annual 1.5% annual investment/management fee on endowment funds to defray the cost of University management of these funds.
Planned Gift Fees
Gifts received from estates, trusts, beneficiary designations, and other planned gifts are subject to the annual Endowment Administrative Fee (if endowed) and the Operational Enhancement Charge.
Life income gifts, including charitable gift annuities and charitable remainder trusts, are not subject to the charges at the time of the initial gift. However, the fee is assessed on the final proceeds received at the conclusion of the life income contract.
Disclosure
Fee disclosure language will be included in gift documents, proposals, pledge forms, fund agreements, receipts, and stewardship reports. Appropriate disclosure language for fund raising literature is as follows: “A portion of all donations is used to further University and advancement efforts on behalf of Point Park University.”
What is the Operational Enhancement Charge?
This is a one-time contribution to help sustain the University and development activities in support of Point Park University’s mission. Beginning October 26, 2022, the charge will be applied to gifts processed by Point Park University to help offset the operations costs of the University, including related to soliciting, processing, and stewarding private contributions.
How does the Operational Enhancement Charge benefit the areas our donors support?
The charge will improve the capacity to grow private giving to Point Park University. To be effective, fundraising requires financial resources to offset direct operating costs related to soliciting, processing, and stewarding private contributions. Revenue generated by the Operational Enhancement Charge will help offset these costs and provide the resources necessary to reach out to more Point Park alumni, friends, and business partners to encourage philanthropic support for Point Park University. These funds will also be utilized to help offset the costs of fundraising and operations for the University overall.
How will the charge be applied?
Upon receipt of a gift, the University will deduct the one-time Operational Enhancement Charge from the amount gifted. While the fee will have only a minor effect on individual funds, its collective impact will encourage sustained growth in private support across the University.
Is the Operational Enhancement Charge in addition to my donation?
Not at all. The charge is automatically deducted from the amount you choose to donate. You are not expected to increase your gift amount to pay the fee, although some may choose to do so. For new endowments and restricted giving, 4 % of your total gift will support fundraising programs across Point Park University and help underwrite the university’s budget, and 96 % will directly benefit the Point Park University program you chose to support. You will receive full donor credit and tax credit for 100% of your total donation.
Do other universities have an Operational Enhancement Charges?
About 75 % of peer institutions with endowment assets below $1 billion apply a similar fee, with those fees generally ranging between 4 and 10%.
Does the Operational Enhancement Charge affect tax deductibility of contributions?
The fee does not affect the tax deductibility of gifts and you will receive full credit for the total contributed amount.
Does the fee apply to gifts to endowed funds?
Yes. The advancement fee applies to gifts and pledge commitments made to establish or contribute to endowed funds. It does not affect donor recognition or naming opportunities and donors will receive full credit for the total contributed amount.
What about gifts made by credit card or check?
The charge applies to gifts made by credit card and gifts made by transfer of stock or securities. To simplify these transactions for our donors and to benefit the area where these gifts are designated, Point Park University will absorb any credit card processing fees assessed for those credit cards processed by the University, as well as any processing fees associated with the transfer of stock or securities.
Does the charge apply to recurring automatic contributions (credit card, EFT, payroll deduction, etc...)?
Yes. The charge will apply to all recurring gifts established on or after October 26, 2022.
Will the donor be able to create the endowment with a gift of the minimum amount?
Yes. Endowment minimums are based on the donor’s total gifted amount, and not the amount invested net of the charge. For those endowments established on or after October 26, 2022, the market value of the fund at inception will be net of the 4% advancement fee, but the donor will receive full credit for the total contributed amount and the endowment will be established.
What about matching gifts?
Yes. The charge does apply for matching gifts.
Does the charge apply to in-kind, non-cash, or real estate gifts?
If an in-kind, non-cash or real estate asset is sold and the net proceeds benefit Point Park University, then the charge will be collected from the net proceeds received in the sale of that item. If the in-kind contribution or service is not sold, then the advancement fee will not apply.
Can the charge be waived?
The advancement fee cannot be waived, but there are specific instances where the advancement fee will not apply. This fee will not apply for a private foundation that has a written policy stating it will not pay gift fees. An advancement fee will not be applied to non-cash gifts (in-kind, service, real estate) that will not or cannot be sold.
Can a donor increase their gift amount to cover the advancement fee?
Yes. A donor may choose to increase their gift amount to offset the advancement fee to ensure that more of their contribution is directed to the area they wish to support.