What is the difference between overhead and administrative fees, (sometimes called donor choice fees)? How much does UWSEPA deduct from donor contributions to cover administrative fees?
A. Overhead is the cost of fundraising, marketing and administration for UWSEPA. This includes all costs excluding community services and is often measured a percentage of total dollars raised. UWSEPA’s overhead rate, as calculated on our IRS Form 990, for the fiscal year ended June 30, 2008 was approximately 13%. [Note that this is NOT the amount deducted from a donor’s gift due to UWSEPA’s ability to offset these costs with revenue such as rental and investment income.] Donor Choice administrative fees are the fees that are deducted from dollars designated to agencies as part of our donor choice program; the flat rate charged for payments to agencies for the 2008 campaign will be 12.5% charged to agencies, and 4% charged to other United Ways for whom we do the processing. The charge is less than the gross overhead cost of approximately 13% due to the ability to offset such expenses with investment income, rental and other miscellaneous revenue.
Related Questions
- What is the difference between overhead and administrative fees, (sometimes called donor choice fees)? How much does UWSEPA deduct from donor contributions to cover administrative fees?
- What percentage of contributions goes to administrative overhead versus directly to mission work?
- What are F&A (facilities and administrative) costs (sometimes called indirect costs or overhead)?
