Policies and Procedures
Administrative Fees Policy
Endowed Accounts
1. Endowed accounts that are restricted in nature (ie scholarships/other) will be subject to an annual administrative fee determined in November each year by the Foundation Board of Directors (currently 1.5% of total value).
One of the following criteria must be met to assess said fee:
a. Restricted Account value is greater than $10,000 or
b. The account has been in existence for 5 years or more
2. Incubation Period - Funds that have not met the $10,000 benchmark will
be considered “incubating” and will not be assessed an annual administrative fee until the fund reaches the $10,000 benchmark or it has been in existence for 5 years. After which time the “incubating” fund will be assessed an administrative fee as determined by the Foundation Board of Directors.
Note: Although exceptions may arise, funds that are considered “incubating” will not pay out scholarships or other program needs until they reach $10,000 in value.
3. Graduated Fees - Funds that have reached a value of $500,000 will be charged a 1% administrative fee.
Annual Restricted Pass-through Scholarships
1. All pass-through scholarships will be charged a $50 fee regardless of value. This amount may be paid in addition to the scholarship or subtracted from the amount of the scholarship.
2. Pass-through scholarships that are from school related organizations, including booster clubs, PTA’s, Coaches Association, and others will be charged a $25 fee to process each scholarship.
3. The Foundation Board encourages donors to consider a $500 minimum
value when determining scholarship awards.
4. Scholarships may be combined by donors/organizations that are like-minded in order to meet the $500 level.
5. Donors wishing to give annual scholarship dollars that are not subject to a pass-through fee may give directly to the Foundation’s Academic Aristocrat General Fund. This fund provides annual scholarships to students who graduate in the top 15% of their class at Grand Island Senior High.
Umbrella Accounts
1. Accounts that are maintained by the Foundation for separate organizations such as booster clubs, and other school related organizations, will be subject to an annual administrative fee based upon the organization’s income.
2. Said fee will be charged against all income, fundraising, and other, except student paid fees for trips etc.
3. The annual fee will be assessed by the Foundation Board of Directors each year after the Foundation’s audited financials are accepted (usually in December or after). Fees will be assessed in arrears from the previous fiscal year’s audit. The Foundation Board of Directors has determined the current rate of the fee to be 2.5% of annual income or $2,000 – whichever is less. The minimum administrative fee charged to member organizations will be $250. This rate is subject to change by a two-thirds majority vote of the Board. There will be a set-up fee assessed of $75 for all new web pages.
4. If an organization does not generate income in a given year, but has assets of $10,000 or more, said organization will be assessed a minimum annual administrative fee of $250.
5. The annual fee will be payable to the Foundation within 30 days of billing each year.
6. The Foundation will provide the following services to umbrella organizations:
- Annual Audit
- Directors' and Officers' Insurance
- Fidelity Bond
- Non-profit tax exempt status
- Administrative Time
- Institutional Trust and/or Banking Services
- Check writing and Financial Tracking (note: The Foundation expects umbrella organizations to also maintain financial records and will not account for student fees individually. The Foundation records will be an aggregate capture of data.)
7. The Foundation Finance Committee will meet with the booster club chairs and treasurers, and the chairs/treasurers of other umbrella groups semi-annually to share information.
8. All umbrella organization accounts shall be operated through the
Foundation’s designated depository or the Foundation’s internal operating account based on the size and goals of the affiliated organization.
9. Procedures – Leadership of each organization operating under the
Foundation’s umbrella will sign the Foundation’s “Umbrella Organization Practices and Procedures” document annually in order to function as part of the Foundation.
