Campaign reinvestment fee

Campaign reinvestment fee FAQs

What is the reinvestment fee?

In 2010 Virginia Commonwealth University implemented a campaign reinvestment fee on all qualifying payments to support its development and alumni relations efforts.

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How much is the reinvestment fee?
VCU assesses a reinvestment fee on all qualifying cash payments to support development and alumni relations programs. The fundraising office of the VCU area to which the original gift was made and the Office of Development and Alumni Relations receive a portion of the fee.

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Why does VCU have a fee?
The fee supports VCU’s commitment to an accountable development and alumni relations operation. This accountability includes our promise to provide timely gift receipts, accurate records and efficient disbursement of gift funds to programs at VCU.

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Do other universities in Virginia apply a fee to their donations?
Gift fees are common at universities throughout the country. Several Virginia institutions, including George Mason, Old Dominion, University of Virginia and Virginia Tech, assess a gift fee.

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Are there any exceptions to the fee?
Yes, the campaign reinvestment fee is not applied to:

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Is my gift still fully tax-deductible?
Yes. Assessment of a reinvestment fee does not affect the tax-deductible amount of a donor’s gift to Virginia Commonwealth University. Donors receive a gift receipt for the full amount of their gifts.

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I am creating an endowment with my gift, but after the fee is assessed my gift will be less than the university’s required minimum. Will the endowment rules be adjusted to allow a payout below the minimum?
The Board of Visitors has approved endowment minimums that are based on the donor’s gift amount, not the amount invested. The university’s affiliated fundraising foundations make payouts based on the amount of the gift invested.

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What is the Office of Development and Alumni Relations doing to control its operating costs?
We continue to explore entrepreneurial ways to increase private giving to the university while keeping our administrative costs at a minimum and our efficiencies at a premium.

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