Your generosity to our institution and its students is greatly appreciated.
While your valued contributions are handled with the utmost level of monetary efficiency, we have seen the necessary administrative and investment costs associated with these funds increase. The HACC Foundation Board will assess a 1.5-percent administrative fee annually on all Foundation funds effective Oct. 1, 2015.Why is the HACC Foundation charging an administrative fee?
- The administrative fee will be used to cover operating expenses of the HACC Foundation. Fees are an investment in the Foundation to ensure that it has the resources to maximize its efforts in fundraising.
- The HACC Foundation's current operating budget is funded by unrestricted HACC Foundation funds that need to be replenished.
- The Designated for Distribution to HACC fund was created in May 1996 by a HACC Foundation Board resolution. The fund was used for operations of the HACC Foundation, debt service obligation of the HACC Foundation, grants for strategic planning initiatives and 50 percent of the salaries of the HACC Foundation-affiliated employees. As of fiscal year 2011-12, no salaries or benefits are being paid from this fund. However, based on historical earnings data and the current rate of spending of $194,813 per year (approved fiscal year 2014-15 budget), the Designated for Distribution to HACC fund is projected to last until June 30, 2016. The balance of this fund as of June 30, 2015, was $268,422.
- The Operating Budget Endowment was created in fiscal year 2008 as a 1.5-percent fee charged to existing endowments from fiscal year 2008 through fiscal year 2010. The fee did not exceed $5,000 per endowment. The fee was suspended in fiscal year 2010-11, per a vote of the HACC Foundation Board. The balance of this fund as of June 30, 2015, was $1,282,239.
- The President's Fund for Excellence is the HACC Foundation's main unrestricted fund. It may be used for the operations of the HACC Foundation, but is used for mission-critical projects for HACC and the HACC Foundation. The balance of this fund (excluding unpaid pledges and approved projects) as of June 30, 2015, was $551,131.
How will the fee help the HACC Foundation?
- A fee of 1.5-percent assessed on the $34.2 million in assets as of June 30, 2015, (total market value of the funds less unpaid pledges) would total $513,000. This funding would help the HACC Foundation continue to:
- Communicate with donors and provide updates on their investments
- Hold special events and fundraisers
- Send mailings
- Hold donor recognition events
- Operate an online giving website
- No salaries will be paid by the funds generated by the administrative fee. The College funds the salaries for HACC employees who assist with the HACC Foundation.
How does this fee change my gift to the HACC Foundation?
- The fee does not change the total of the charitable gift for donor tax purposes.
- Your gift will ensure that the HACC Foundation remains able to raise and allocate funds for HACC, Central Pennsylvania's Community College.