Endowment (Permanent) Funds

The Community Foundation charges an annual administrative fee (assessed quarterly) on all endowment funds based on the assets of the endowment. A minimum fee of $300 will apply to all funds. Additionally, investment management fees are charged to each endowment fund based on its percentage of total assets. The investment management fee averages 40-50 basis points (0.4-0.5 percentage points) and is separately charged to each fund.

Donor Advised, Designated, Agency Endowment, Scholarship* and Advised Field of Interest Funds:

First $1 million - The greater of $300, or 1% of fund balance
Next $1 million - 0.5% of fund balance 

Balance above $2 million – 0.2% of fund balance

*Additionally, Scholarships will be assessed a supplemental fee of 5% of grants awarded

Unrestricted and Field of Interest Funds:

1% plus 5% of grants awarded

Depository and Corporate Depository

The Community Foundation retains all interest income for individual and corporate charitable giving accounts with balances of up to $100,000. Donors may elect to place funds in excess of $100,000 in the Balanced Income Pool. Donors may contact the Foundation regarding investment options to share interest from the Balanced Income Pool on a 50/50 basis. All capital gains and losses in the value of the Balanced Income Pool will be allocated to the donors' charitable accounts. No other administrative fees are charged for routine account services.

Life Income Funds – Pooled Income Funds and Gift Annuities

Pooled Income Funds:

Gifts must be at least $25,000, and beneficiaries must be at least 60 years old.  The annual fee equals 2.5% of the amount the fund earns as interest. While all funds must remain at the Community Foundation as an endowment fund after the donor’s death, any type of endowment fund may be established. If the minimum for an endowment fund is not met, the balance will be added to the Community Foundation’s Unrestricted Endowment Fund.

Gift Annuities:

Gifts must be at least $50,000, and beneficiaries must be at least 60 years old. Gift annuity administration fees do not impact the amount of gift annuity payments to donors. While all funds must remain at the Community Foundation as an endowment fund after the donor’s death, any type of endowment fund may be established if the remaining balance meets the minimum to establish an endowment fund. If the minimum for an endowment fund is not met, the balance will be added to the Community Foundation’s Unrestricted Endowment Fund. Remaining balances may not be added to an existing nonprofit agency endowment fund. Gift annuity accounts will be charged an administrative fee equal to:

First $1 million - The greater of $300, or 1% of fund balance
Next $1 million - 0.5% of fund balance 

Balance above $2 million – 0.2% of fund balance

Charitable Remainder Trusts

When the Community Foundation serves as trustee, all individual trusts will be charged an annual administrative fee separate from actual incurred expenses for investment management and tax return preparation. Incurred expenses will be separately charged to the trust principal. The administrative fee shall be determined by the percentage of funds that will come to the Community Foundation’s Unrestricted Fund or a broad Field of Interest Fund at the termination of the trust. Grants from the Unrestricted Fund are used to meet the most pressing needs of our community.

If 100% of the trust will come to the Community Foundation’s Unrestricted Fund, the administrative fee shall be waived.  The trust will only be charged for actual incurred expenses for investment management (will vary depending on investment objective, but approximately 0.25% - 1% of trust) and annual income tax return preparation (approximately $350 - $400).

For all other charitable remainder trusts, the basic annual administrative fee is .5% of the total trust balance ($1,000 minimum). Actual incurred expenses will also be charged to the trust. Any balance over $1 million will have a reduced administrative fee, as shown below, with no fee charged for assets over $5 million.

Administrative Fee Schedule:

First $1 million - .5% ($1,000 minimum)

Next $4 million - .25%

Balance above $5 million - Fee waived

Additionally, when an endowment is created by any matured planned gift, a one-time set-up fee will be assessed, which is equivalent to a one-year fee on the balance transferred to the new endowment fund. The Foundation may waive or reduce this fee depending upon the administrative responsibilities required for the fund.

The Community Foundation of Louisville, Inc. retains the right to amend its fees.

Fees as of August 2008.