Cost recovery schedule
EFFECTIVE January 1, 2003
CASH MANAGEMENT:
Money Market - 5% of net income annually
SB Bank Deposit Program - 0.25% annually of average fair market value of cash managed
Citi Institutional Liquid Reserves - 0.25% annually of average fair market value of cash managed
MANAGEMENT OF POOLED INVESTMENTS:
Cost recovery on common investment funds is accomplished through a charge made against earnings of each fund before they are allocated to individual accounts owning shares. Cost recovery is calculated as an annual percentage rate of average fair market value of assets in Foundation funds according to the following schedule:
0.75% on first $1,000,000
0.50% on next $1,000,000
0.45% on next $1,000,000
0.40% on balance
The agency accounts of institutions having multiple accounts in common investment funds will be combined for the purpose of calculating cost recovery.
In addition to cost recovery, professional investment managers or investment advisors may be retained by the funds, and may be compensated out of the assets of the common investment funds.
Federal legislation enacted allows investments in common investment funds only by charitable entities.
MANAGEMENT OF NON-POOLED ASSETS:
INVESTMENTS IN INDIVIDUAL STOCKS AND FINANCIAL INSTRUMENTS:
1% of asset value, calculated as an annual percentage rate of average fair market value.
OTHER AVAILABLE INVESTMENT FUNDS:
The Foundation has negotiated arrangements with selected mutual fund companies and managers of charitable funds. The arrangements make available a variety of indexed mutual funds to all accounts and in addition qualified charitable accounts have a selection of funds that specialize in categories such as international, small cap, value or fixed income investments. The Foundation’s cost recovery charges for investments through these arrangements will vary from 0.40% to 0.75% of asset value, calculated as an annual percentage rate of average fair market value.
INCOME PRODUCING REAL ESTATE:
10% of gross income collected
NON-INCOME PRODUCING REAL ESTATE:
1% of asset value, calculated as an annual percentage rate of fair market value as determined by value at the time it was placed in trust with the Foundation or by subsequent appraisals.
DONOR ADVISED FUND CHARGE
The regular asset management charge and non-agency principal distribution charge will be applied.
GIFT ANNUITY ADMINISTRATION CHARGE
The regular asset management charge and non-agency principal distribution charge will be applied.
One-time set up charge of $100.00 for non-agency gift annuities
Annual fee for 1099’s $20.00
Annual fee for annuity payments more frequent than quarterly $10.00
SECURITY PROCESSING CHARGE
0.25% of sale proceeds from securities liquidated by the Foundation as agent for a donor or a Baptist cause, a minimum charge of $25.00 will apply. Does not apply to securities administered within trusts managed by the Foundation.
TRANSACTION CHARGE:
First 12 free; additional transactions, $3 each. Does not apply to income distributions from common investment funds or money market funds.
REAL ESTATE SALES:
5% of gross sales price (if Foundation sells)
3% of gross sales price (if Realtor sells)
NON-AGENCY PRINCIPAL DISTRIBUTION CHARGE:
This charge does not apply to routine distributions to the Grantor of a Grantor Trust.
It does apply to payout of principal upon termination of account, gift annuities or settlement of a trust estate.
2% of distribution to Baptist causes and individuals
3% of distribution to Non-Baptist causes
For gift annuity distributions that MBF is the only guarantor of the annuity payments, distribution charge will be 10% of account balance plus 50% of any excess above the original gift amount.
INCOME DISTRIBUTION CHARGE FOR NON-BAPTIST CAUSES:
10% of all income paid out to beneficiaries other than individuals
GENERAL ADMINISTRATION
All accounts will be charged for expenses directly related to that account, such as real estate taxes, property insurance, legal fees, tax preparation charges, brokerage fees, etc.
If unusual or special services are required of the Foundation, additional reasonable cost recovery may be made in accordance with the amount of work involved and responsibility assumed.
Cost recovery schedules are subject to annual review by the Foundation Board of Trustees.
