Fees
Management of The San Diego Foundation’s cash and marketable securities is the responsibility of our Investment Committee, comprised of carefully selected professional, knowledgeable volunteers. Foundation volunteers and the firms they work for are ineligible to manage foundation assets. With the support of professional staff and consultants, the committee retains money managers that specialize investing within specific categories of assets. Each manager is held to defined performance benchmarks.
Foundation Support
A foundation support fee is taken out of a fund’s distributable amount. Fee dollars are used for such purposes as grant research, community dialogue and other efforts aimed toward the goal of improving the quality of life in San Diego.
Common Good and Advised Fund Fees
| |
Up to $1 million |
Amounts exceeding first $1 million, up to $5 million |
Amounts exceeding $5 million |
| Endowment Funds |
1.0% |
0.75% |
0.50% |
| Non-Endowment Funds |
1.50% |
1.00% |
0.75% |
Designated Fund Fees
Scholarship Fund Fees
| |
Advised |
Corporate / Customized |
| Endowment Funds |
2.00% |
Negotiable |
| Non-Endowment Funds |
2.00% |
Negotiable |
The fees for Legacy Funds are consistent with the tables above. In addition, upon receipt of the assets, a onetime fee of 1% is assessed.
Land Acquisition and Management Funds, including Mitigation Funds
Foundation support fee determined on a case-by-case basis.
Fees are charged monthly at a rate of 1/12 per month. A minimum of $250 per year will be charged against each type of fund for foundation support. Any out-of-pocket expenses paid by The San Diego Foundation on behalf of a gift, including but not limited to legal fees, maintenance, or costs associated with the sale of real estate, are charged against the fund. Direct expenses may specifically be associated with scholarship funds.
Professional Money Management, Custodial and Reporting Expenses
To ensure that funds are managed to balance risk and return, The San Diego Foundation’s Investment Committee employs the services of professional money managers to invest these funds. The San Diego Foundation also incurs expenses to provide custodial and reporting services, a portion of which are reimbursed. Earnings are posted to each fund net of these expenses. This information is provided in the spirit of full disclosure.
| |
Paid |
Purpose |
Goal |
| Investment Expenses Fees for investment management |
Calculated monthly against the Principal balance of the fund |
Custodial and reporting services and professional money management |
To ensure funds are managed in a way which yields superior long-term risk-adjusted returns |
For both endowment and non-endowment funds, expenses are netted against returns. By combining investment values of all funds, expenses to each individual fund are significantly reduced.
All investment expenses pertaining to endowment funds currently cost each fund less than 90 basis points (.90%) annually. Investment expenses pertaining to non-endowment funds are broken out as follows:
| |
Pool A: Basis Points |
Pool B: Basis Points |
Pool C: Basis Points |
| Non-Endowment Funds |
= Currently 55 (0.55%)
annual
|
= Currently 55 (0.55%)
annual |
= Currently 80 (0.80%)
annual |