Foundation seeks higher assessment rate on gifts

By Beverly Creamer
Advertiser Education Writer

The University of Hawai'i Foundation is asking the Board of Regents to increase its assessment rate on the funds it manages from the current 2 percent to a sliding scale based on the amount of each individual gift.

The assessment rate is the amount taken from each gift to manage the account for the university's benefit.

Under the increase request, the overall effective rate would be 3 percent, according to the foundation, with smaller gifts assessed at 5 percent and larger ones at 2 percent.

Under the structure the foundation proposes, gifts up to $499,999 would be assessed at 5 percent; gifts between $500,000 and $1,249,999 would be assessed at 4 percent; gifts from $1.25 million to $2,499,999 would be assessed at 3 percent; and gifts between $2.5 million and $5 million would be assessed at 2 percent.

The maximum assessment for any gift, regardless of amount, is expected to be $100,000.

The total contract the foundation holds with UH is about $3 million, which includes $2 million for fund raising, $350,000 for Alumni Relations and approximately $650,000 to pay half of the Unit Development officers' salaries and benefits. Under the proposed contract the total amount would be be divided differently for easier administration, with $2,650,000 for fund raising and $350,000 for Alumni Relations.

Reach Beverly Creamer at bcreamer@honoluluadvertiser.com or 525-8013.

Correction: A previous version of this story contained incorrect information about the breakdown of the foundation's current and proposed contract with UH.