| Disclosure of Fees
and/or Financial Benefits to Third-Party Participants |
Fund
and Investment Fees
The Community Foundation charges a management fee, according
the fee schedule on all
funds held by the foundation.
In addition, funds are billed quarterly for investment
manager fees. At the present time, The Community Foundation
contracts investment management services from the Boulder-based
firm of Baydush Simon Weaver.
All investments of The Community Foundation are overseen
by a pro-bono Investment
Committee, comprised of principals in a number of
local investment firms and banks. That committee conducted
an extensive search, including a request for proposals
and in-depth interviews, of over 20 investment managers
seeking to advise the Foundation in this capacity. After
this search, conducted in the fall of 2002, the committee
recommended that the Foundation use the services of Baydush
Simon Weaver.
Baydush Simon Weaver charges the Foundation a maximum
of 40 basis points annually at the present time. As the
funds under management hit certain milestones, that fee
will go down. All funds are billed directly on a quarterly
basis.
When a donor establishes a fund of $250,000 or more, he
or she has the option of recommending a different investment
advisor. These advisors must adhere to the Investment
Policy Statement guidelines issued by The Community
Foundation Investment Committee, must consent to the oversight
of this committee, and may not charge more than 60 basis
points annually for investment advisor services. (Current
investment advisors are shown in a box on the right.)
In this event, the Foundation, the investment advisor
and the donor must all sign the “Items of Understanding
between The Community Foundation Serving Boulder County
and Investment Management Firms.”
Legal Fees
The Community Foundation has had the resource of a standing
pro-bono Legal Committee.
This committee is comprised of attorneys and accountants
who specialize in fields including wills and estates,
corporate law, real estate and transactional law, and
audit accounting. This group reviews potential gifts on
a monthly basis to help the foundation – and potential
donors – understand the legal ramifications of a
potential gift. In the event that the foundation incurs
legal fees, those would generally come out of the foundation’s
operating budget, and would not be billed to a donor or
a donor’s fund without prior consent.
Merrill Lynch Community Charitable
Fund(SM) Program
Donors to The Community Foundation through the Merrill
Lynch Community Charitable Fund(SM) Program will incur
the following fee schedule, excerpted from the “Merrill
Lynch Community Charitable Fund(SM) Program – May
2003” Publication:
Ongoing Fee Structure:
Each donor advised fund will be assessed a 210
basis point (2.1%) total annual fee automatically
deducted on a pro-rata monthly basis (17.5 bps).
This fee will be split between the participating
community foundations (PCF) and Merrill Lynch,
110 bps and 100 bps, respectively. The PCF fee
will be used to pay the asset and fund based fees
charged by NPO Solutions (ranging from 33 bps
to 48 bps, depending on the technology option
selected) and Community Foundation Investment
Partnership (CFIP) and Community Foundations Service
Corporation (CFSC) support expense (initially
25 bps) with the remainder being available for
the PCF. The Merrill Lynch portion will be used
to cover all investment related expenses: both
for management and consulting services, as well
as for general overhead and the monthly maintenance
fee to NPO Solutions. Many of these internal fees
charged to community foundations are on an aggregated
sliding scale, which should result in increased
net revenues to individual community foundations
as the program matures. |
January 6, 2005 |
|
Fee Schedule
The fee schedule is also
available in Adobe Portable Document Format (PDF; size
100 KB), a more printer-friendly format. You must have
Adobe Reader installed on your computer to use this
feature. You can download the free Adobe Reader software
here. |
Currently
the Donor Advised Endowment Fund investment advisors
are:
Baydush Simon Weaver
Boulder, Colorado
Leonard Financial, Ltd.
Boulder, Colorado
Merrill Lynch
Boulder, Colorado
RW Baird & Company
Boulder, Colorado
Reber/Russell Company
Boulder, Colorado |
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