Ohio University Foundation Real Estate LLC Gift Fee Policy as Adopted June 2023
Purpose
The purpose of this Policy is to establish a gift fee that Ohio University Foundation Real Estate LLC (“the RE LLC”) will assess on contributions received. Funds generated from assessment of the gift fee will be used by the RE LLC to support its mission including, without limitation, its operating costs.
Applicability
Except as otherwise provided, this policy applies to all gifts received by the RE LLC, including but not limited to real property, tangible personal property that is incident to ownership of real property, and limited liability company or other entity interests that, in turn, own or control real property.
Exemptions
Gifts are exempt from the gift fee if the gift is to be retained (i.e., not liquidated or converted to cash) for use by the RE LLC, The Ohio University Foundation or Ohio University.
Calculation Method
Total transaction fees associated with liquidating a gift, including those assessed by real estate brokers and the RE LLC, shall not exceed 10% of the gift’s gross sales price. Fees assessed by any other party to the sale, including but not limited to legal counsel and governmental entities, shall be funded from net property sale proceeds. For the purposes of this policy, The Ohio University Foundation and Ohio University, who ultimately benefit from the gift, are not deemed to be parties to the sale.
If existing market conditions reasonably require total transaction fees to exceed 10% of the gift’s gross sales price, an exception may be recommended and granted in accordance with the Enforcement and Implementation section of this policy.
When calculating the gift fee to be made available to and retained by the RE LLC, the gift fee shall be equal to 10% of the gift’s gross sales price, less all broker fees and commissions. Other costs, including legal fees, transfer taxes, title searches, other reasonable and customary seller closing costs, and similar amounts, shall be funded from net property sale proceeds.
The gift fee will be calculated and assessed, and funds transferred into the RE LLC’s appropriate operating funds, as soon as practical after cash proceeds are received from liquidating a gift.
Net cash proceeds received from liquidating a gift will be distributed to the Foundation after all of the following has occurred:
- the sale of a gift is complete,
- any fees associated with liquidating a gift, including those assessed by real estate brokers, legal counsel, governmental entities, and any other party to the sale have been identified and accrued or paid, and
- the gift fee due to the RE LLC has been calculated and transferred into the RE LLC’s appropriate operating funds.
Enforcement and Implementation
The gift fee will be calculated and assessed by the RE LLC’s Treasurer or designee.
It is the responsibility of all staff to follow this policy and make this information available to donors and potential donors.
Exceptions to this policy may be granted upon request from the Foundation’s President and CEO in consultation with the Foundation’s Treasurer and CFO. Exception requests will be presented to either The Ohio University Foundation’s Board of Trustees or its Executive Committee for approval.
Effective Date
This policy is effective as of June 22, 2023. It replaces and supersedes any prior policy concerning this subject matter. The policy is subject to periodic review and revision by the RE LLC’s Board of Directors and The Ohio University Foundation’s Board of Trustees.