The proposed 6 percent campus gift fee is one of the major funding sources of the upcoming comprehensive campaign. Revenue from the fee will provide an estimated $3 million in funding in 2004-05, with the figure rising as more gifts are collected in succeeding years.

When does it begin?

The gift fee will take effect in fall 2004. The fee will be collected at the time a gift is received.

How will it be divided?

Of the 6 percent fee, 4 percent will be directed to deans and vice chancellors, and 2 percent to the chancellor's pool. All funds will be used to support development.

How will it be assessed?

Only the chancellor may assess a gift fee -- not deans, vice chancellors, vice provosts or campus departments. Gifts-in-kind, which are not cash gifts, will only be assessed if they are converted to cash. Planned-giving gifts will be subject to the fee when the cash is received.

What gifts are subject to the fee?

• Gifts for facilities
• Gifts for endowments
• Gifts for current uses
• Employee contributions
• Memorial gifts
• Planned-giving gifts
• Annual-fund contributions
• All cash gifts

What's not included?

Exemptions to the fee may include gifts-in-kind never converted to cash, private grants assessed indirect costs, and gifts with donor restrictions set by statute or established policy. Also, the chancellor may grant an exemption on a case-by-case basis.

What are the options for paying the gift fee?

Deans and vice chancellors may consult with donors and choose one of the following methods:

• Immediately deduct the fee from the gift principal.
• The central campus can hold the gift until sufficient interest accrues to pay the fee.
• The donor may contribute an additional amount to cover the fee cost.
• The fee may be paid from discretionary sources.

Do other UCs have a gift fee?

Most UC campuses already have a gift fee. UC Davis, UC Santa Barbara and UC Merced are the only UCs that do not currently have one. However, at UC Davis, some colleges and schools do assess their own gift fee, and gift fees can be applied to designated initiatives.

-- By Clifton Parker