Title
University of North Carolina at Chapel Hill Policy on Endowment Administrative Fees
Introduction
Purpose
The administrative fee was implemented in January 2001 by the Board of Directors of The University of North Carolina at Chapel Hill ("UNC-Chapel Hill" or "University") Foundation Investment Funds, Inc. The revenues generated by the fee are intended to support development activities and services both at the university and school/unit level.
Scope of Applicability
This policy applies to all Associated Entities that participate in the Chapel Hill Investment Fund (CHIF).
Policy
Policy Statement
The endowment administrative fee is charged by the CHIF to certain participants and transferred to the University in order to support development activities throughout the University. Funds belonging to the UNC-Chapel Hill Foundation, Inc., the UNC-Chapel Hill Endowment Fund, and affiliated foundations are charged 80 basis points against the 12-month average of net market value between April 1 and March 31. Distribution of the fee is as follows:
- All of the basis points (80) charged against UNC-Chapel Hill Foundation funds and any funds unrelated to a school/unit within the Endowment Fund are transferred to the University to support its central development office.
- Schools and/or Units receive 60 basis points of their respective funds within the Endowment Fund, while 20 basis points are transferred to the University to support its central development office.
- Schools and/or Units with affiliated foundations have the option to reinvest or receive 60 basis points, while 20 basis points are transferred to the University to support its central development office.
Beginning October 1, 2015, and subsequent to the approval of the CHIF Board of Directors, an additional 20 basis points are being charged against the 12-month average of net market value between April 1 and March 31. These funds will be transferred to the University's OneCarolina Investment Fund, administered by the central development office, and used to fund additional development activities throughout the University.
Special Situations
Under an agreement with the University, non-exempt participants may choose to reinvest their portion of the fee.
Exceptions
Under an agreement with the University, certain participants in CHIF may be exempt from this fee provided they do not utilize the University's central development services.
Definitions
Associated Entity: any foundation, association, corporation, limited liability company (LLC), partnership, or other non-profit entity that was:
- established by officers of the University; or
- that is controlled by the University; or
- that raises funds in the name of the University; or
- that has a primary purpose of providing services or conducting activities in furtherance of the University’s mission pursuant to an agreement with the University; or
- that has a tax-exempt status that is based on being a support organization for the University.
Basis Points: one-hundredth of one percent, used in expressing differences of interest rates. i.e. 100 basis points equal 1%
Contact Information
University Development
- Title: Vice Chancellor for University Development
- Name: Michael Andreasen
- Phone: 919-962-2336
- Email: Mike.Andreasen@unc.edu