Wichita State University needs more private funding to provide students the best educational experience possible. It costs money to secure and to manage that funding.
As the state of Kansas grapples with budget challenges, state appropriations to Wichita State University continue to shrink as a portion of its annual budget. The WSU Foundation has been asked to increase private contributions to offset this and to keep WSU on the cutting edge of educational opportunities. In addition, there are costs associated with conducting business such as gift processing, record-keeping, and audits.
The Foundation is an independent and private organization. In 1974, its small staff was able to raise enough private money to provide $18,000 in scholarships and $106,000 in university support. In 2019, a staff of 45 raised and managed more than $8 million in scholarships and almost $16 million in university support. We must invest in the capacity of this staff to increase the support provided to WSU.
As an independent organization, fees are necessary to support the Foundation’s essential work in helping the university grow. The Foundation’s fee structure is periodically reviewed and approved by its Board of Directors. Currently, the Foundation has three distinct fees.
The WSU Foundation did extensive research and comparison of public institutions and found that 85 percent of those surveyed assess an endowment administrative fee and 62 percent assess a gift fee. Gift fees for those surveyed range from 1 percent to 10 percent.
The Council for the Advancement and Support of Education conducts similar surveys. In its FY13 survey of institutionally related foundations, it found that 95 percent of those responding who support research/doctoral universities assess an endowment administrative fee and that 53.5 percent assess a gift fee to help cover the costs of foundation operations.
Payments on pledges established prior to July 1, 2015, are not subject to the Foundation fee. The exception to this is on pledges of capital buildings and equipment, for which an assessment fee went into place July 1, 2014.
These fees do not affect the deductibility of your gift.
The Foundation fee does not apply to gifts-in-kind, with the exception of gifts that are converted to cash, such as gifts of property that are liquidated. In addition, because WSU Athletics pays for its own fundraising services, gifts to SASO and ICAA-managed funds will not be subject to the Foundation fee. This is true for gifts to KMUW’s pledge drive and sponsorships and the WSU Alumni Association.