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Advancement Fee Q&A

What is the advancement fee?
The UA Foundation charges a 5% one-time advancement fee of 5% on gifts. Gifts to endowments have a one-time 1% advancement fee.

How does the advancement fee benefit the UA areas our donors support?
The advancement fee provides the capacity to grow private giving to the UA system by offsetting the direct operating costs for soliciting, processing, and stewarding private contributions. Revenue generated by the advancement fee helps offset costs. It provides the resources necessary to reach out to more UA alumni, friends, and business partners to encourage philanthropic support for the University of Alaska.

How will the advancement fee be applied?
Upon gift acceptance, the UA Foundation will deduct the one-time advancement fee from the amount gifted. While the fees only have a minor impact on individual funds, their collective impact will encourage sustained support and growth in private philanthropic support across the UA system.

The one-time advancement fee applies as follows:

  • 5% on gifts to non-endowed funds.
  • 1% on gifts to endowed funds.

Is the advancement fee charged in addition to my donation?
No. The advancement fee is automatically deducted from the amount you choose to donate. You do not need to increase the amount of your gift to pay the fee, although some donors choose to do so. Your total gift will support fundraising programs across the University of Alaska, and 95 or 99 percent of your gift will directly benefit the UA program you chose to support. Donors receive full credit for their total contribution and, where applicable, income tax deductibility for 100% of your donation.

Do other universities have an advancement fee?
About 75% of peer university foundations apply a similar advancement fee, which generally range between four and ten percent.

Does the advancement fee affect the income tax deductibility of contributions?
The fee does not affect the full income tax deductibility of gifts.

Does the advancement fee apply to gifts for endowed funds?
Yes. The advancement fee applies to gifts establishing or contributing to endowed funds. A 1% onetime fee and a 1% annual fee on invested funds. It does not affect donor recognition or naming opportunities; donors will receive full credit for the total amount contributed.

Does the advancement fee apply to pledge payments?
Yes. The advancement fee applies to pledge payments.

What about gifts made with a credit card or processing fees for gifts of stock?
The advancement fee 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 UA area where these gifts are designated, UA absorbs credit card and third-party processing fees assessed on gifts.

Does the advancement fee apply to recurring automatic contributions (credit card, payroll deductions, etc.)?
Yes. The advancement fee applies to recurring gifts.

Will the donor be able to create a new fund with a gift of the minimum amount?
Yes, when a single gift creates a new fund, the new fund minimums apply before the advancement fee is deducted. The advancement fee will not affect the minimum gift and fund levels defined by the University’s Gift Acceptance Policy and Regulations. For funds established through multiple gifts, the limitation will be applied after the advancement fee is deducted.

What about matching gifts?
Yes. The advancement fee applies to matching gifts.

Does the advancement fee apply to in-kind, non-cash, or real estate gifts?
The advancement fee will not be levied on:

  • Non-cash gifts, such as auction and inventory items, except gifts of securities and other assets (such as gold) that are expected to be sold upon receipt (and which will be assessed an advancement fee on the net cash sale amount).
  • Gifts of real estate (the advancement fee will be levied at the point the gift is sold and the proceeds are transferred to the Foundation).
  • Non-gift portions of quid pro quo gifts.
  • Pledges (advancement fee will be applied to all payments on pledges regardless of when the pledge was made).

Can a donor increase their gift amount to cover the advancement fee?
Yes. A donor may increase their gift amount to offset the advancement fee and ensure that more of their contribution impacts UA. Please contact us to calculate the gift amount to cover the advancement fee.