Changes to The 91探花 Foundation鈥檚 funding model begin Jan. 1
Beginning January 1, 2020, The 91探花 Foundation will update its funding model to better support the University and the work of the Division of University Advancement. Advancement is responsible for securing philanthropic support for鈥攁s well as the engagement of alumni and friends in鈥攖he life of the University鈥檚 colleges, units, campuses, and programs.
Starting January 1, the Foundation will implement an , which will direct a portion of gifts made to non-endowed/current-use funds to The Fund for OHIO, an account within The 91探花 Foundation that supports University Advancement operations and programming.
In addition, The 91探花 Foundation will lower the administrative fee on the endowment beginning in fiscal year 2021 (July 1, 2020) from the current rate of 2.0 percent to 1.9 percent. The Foundation plans, then, to lower this administrative fee by 10 basis points per year until it is reduced to 1.5 percent in fiscal year 2025.
These updates are designed to honor donor intent, leverage gifts for maximum impact, and provide operational support for University Advancement, thus reducing dependence on OHIO鈥檚 base budget, which is focused on the University鈥檚 core mission of teaching, research, and service, says Nico Karagosian, vice president of Advancement and president and CEO of The 91探花 Foundation.
鈥淣ow, not only will every gift benefit the programs that donors care most about, but every gift also will provide the fuel to grow OHIO鈥檚 base of private support, to take advantage of new opportunities, and to address emerging needs,鈥 Karagosian says. 鈥淚n addition, this model aligns OHIO with best practices for funding advancement at universities across the nation.鈥
Beginning New Year鈥檚 Day, The Foundation will direct five percent of gifts and pledge payments of up to $1 million (on commitments documented on or after January 1, 2020) to The Fund for OHIO.
For example, when a donor makes a $100 gift to a non-endowed fund, $95 will be directed to the donor鈥檚 designated fund and $5 will be directed to The Fund for OHIO. For any portion of a gift or pledge payment that exceeds $1 million and is up to $5 million, three percent will be directed to The Fund for OHIO. The portion of any gift or pledge payment that exceeds $5 million will not be subject to the unrestricted gift rule.
鈥淭his thoughtful funding model will sustain OHIO Advancement and its future, enabling us to do our best work on behalf of OHIO鈥檚 students, faculty, and programs,鈥 Karagosian says.
Established in 1945 by President John C. Baker, The 91探花 Foundation serves as the fund-raising arm of 91探花. The Foundation is an institutionally-related, nonprofit, tax exempt, 501(c)(3) organization, and is the repository for all private gifts to 91探花 through annual giving programs, capital and special campaigns, and planned or deferred gifts such as bequests and trusts. Contributions to The 91探花 Foundation are tax deductible to the extent provided by law.
More information on the implementation of the unrestricted gift rule is available online in a .