An effective and efficient development operation is our responsibility to all donors to the Reynolds Community College Educational Foundation. This means providing you with a timely gift receipt, ensuring the accuracy of our records, the careful disbursement of funds to the program your gift supports and sharing with you the impact your gift has made. We want to be the best stewards of your investment. Reynolds joins other colleges and non-profit organizations in taking this step, and it is one we take thoughtfully.
A reinvestment charge of 4 percent will improve the Educational Foundation's ability to reinvest in the activities that help ensure we are good stewards of your generosity. Additionally, our fundraising capabilities are increased so that we can help fill the gap between the state dollars Reynolds receives to support operations and the rising costs of delivering the academic programs and services our students need to pursue a career. Today, only 30 percent of the Reynolds operating budget comes from state general funds.
Why does the Educational Foundation have a reinvestment charge?
Good stewardship means we thank and inform our donors regarding the impact of their gift, carefully record and distribute those donations, and leverage existing support to bring in additional dollars to benefit students and programs. There is a cost to process and administer contributions, and the reinvestment charge helps us cover this while continuing to grow our capacity to raise funds.
How much is the reinvestment charge?
The charge is 4 percent on all non-endowed restricted gifts, effective January 31, 2014. A restricted gift is one that is designated to any fund other than the Fund for Reynolds, which is Reynolds Community College's annual fund.
What does a "restricted gift" mean?
A donation to a named scholarship is an example of a restricted gift, as it is designated to a specific fund and its use is restricted to that particular scholarship award.
How does the fee affect endowments?
The Educational Foundation currently has in place (prior to January 31, 2014) a reinvestment charge on endowments of 1.2 percent of the three-year rolling average market value. This new charge will not affect or increase this existing charge.
Do other colleges and universities have charges or fees related to gifts?
Yes. It is not uncommon to find fees in this range at colleges and universities in Virginia and nationally. Other charitable organizations in the Richmond region also assess a gift-based fee.
Is my gift still fully tax deductible?
Absolutely, and your gift receipt will continue to reflect the full amount of your donation.