Effective July 1, 2010, an administrative assessment was approved for implementation as part of the funding strategy that will build capacity for increased private donations to Mizzou and the other campuses.
The assessment for administrative costs is one of several resources identified to support university fundraising efforts. Others include direct university support, an endowment management assessment, and the option of special allocations from the university’s governing board. All contributions received from donors are subject to the assessment. Note: Donors receive credit for the full amount of their gifts.
Many universities nationwide include a gift assessment for administrative costs over and above indirect costs. Grant making associations, corporations and foundations also support this action as a way to invest in the future advancement efforts of the organization.
The assessment for administrative cost helps to generate the resources needed to meet the increasing demand for private support to the university. Assessments cover the cost of administering and processing gifts, ensuring funds are distributed, processed and documented accurately and efficiently. Without these efforts there would be far less private support of the university, resulting in fewer scholarships, fellowships, programs and research funds. These funds are essential to supporting the University of Missouri to a higher level of excellence.
Annual Endowment Management Assessment
Effective July 1, 2017, the Board of Curators approved an adjustment to the annual endowment management assessment to 1.25% of the fair market value of the endowment. The administrative cost is assessed on all endowments unless the donor had opted-out or had a prior written agreement with the university that a specific endowment is exempted from any type of management or administrative cost prior to the initial start date of July 1, 2010. All new endowments, no exceptions, are assessed the Annual Endowment Management Cost.
Endowments that are not fully funded will not be assessed the endowment management costs until fully funded. New endowments that are established but not fully funded will include language that allows for the endowment assessment once fully funded.
Upfront Administrative Gift Assessment
Effective July 1, 2017, the upfront administrative cost was adjusted to 5% on all new gifts, including new endowment contributions as well as gifts to affiliated 501(c)(3) organizations.
Realized estate gifts, charitable gift annuities, charitable remainder trusts, charitable lead trusts, pooled income funds, gifts to pay insurance premiums and non-cash gifts are excluded from the upfront cost assessment, unless specifically authorized by the donor. Note: For this policy, gifts of securities are considered cash gifts and subject to the assessment.