Funding the Advancement of NC State University

Funding the Advancement of
NC State University

At NC State University, we create prosperity for North Carolina and the nation. NC State is a powerhouse in science, technology, engineering and math, and we lead in agriculture, education, textiles, business and natural resources management. By giving to NC State, you can have an immediate impact or leave an enduring legacy. Your investment in NC State drives us from great to extraordinary.

To support ongoing fundraising efforts, the university applies gift assessment fees on charitable contributions to NC State.

How are the fees assessed?

Current Operation & Facilities Funds

Gifts supporting current operations and facilities are assessed a one-time, up-front gift assessment fee of 7% (with 4% designated for central Advancement, and 3% designated for the fundraising unit to which the gift was allocated.)

Endowment Funds

Assessments to endowment funds are computed annually at a rate of 125 basis points and are split between central Advancement and the benefiting fundraising unit.

Building to Endowment Funds

Gifts to funds building to endowment (BTE) are assessed annually by dividing all interest and dividends earned 50/50 between central Advancement and the benefiting fundraising unit.

What will NC State do with gift assessment funds?

NC State remains committed to ensuring that gifts are used according to our donors’ intentions. Like other organizations that depend on philanthropic support, the university needs to cover administrative costs incurred in managing its fundraising operations.

All revenue generated from these fees will be invested in the advancement/development programs in central Advancement and at the college or unit levels. NC State uses the revenues to hire development staff and provide critical funding for program support and donor relations.

Do other universities take this approach to fund advancement?

Yes. This approach has been in practice for several years by many universities across the country, including most of NC State’s peer institutions. Gift assessments from our peers range from 2% to more than 8%. Other charity organizations have administrative cost rates that range between 10% and 20%.

NC State has been conservative in its approach and will continue to review our gift assessment and endowment assessment fees moving forward. Any change in the future would be in line with industry standards. It should be noted that 93% of every current-use dollar gifted to NC State supports the specific program for which it was given, and 100% of every dollar goes to support NC State. We strive to keep costs down and ensure the highest possible return on investment.

Do assessments affect the tax-deductible amount of a donor’s gift?

No. Donors receive full tax credit and a receipt for the full amount of their gift. Information indicating full tax credit and related gift assessment fees are and will continue to be included on all gift receipts.

Note that a donor may wish to make a current-use gift that ensures that the program benefiting from their gift receives a specific amount inclusive of the gift fee. In this case, the donor may elect to provide a gift calculated as the net amount intended for the department plus 7% of that value.