Updated Feb. 20, 2023
GENERAL
Each year, SigEp’s Educational Foundation Board of Trustees reviews fees and spending policies as it assesses student, donor and organizational needs in ever-changing economic and market conditions. Similarly, SigEp’s Investment Committee regularly reviews the investment strategy, as well as the performance and fees of SigEp’s outsourced chief investment officer, Global Endowment Management.
Per a resolution passed by the Foundation Trustees in December 2022, a percentage of restricted gifts will be reallocated to the Annual Fund to meet the immediate needs of our undergraduates, including programs and services that advance leadership development, career preparedness, mental wellness and physical health. The following fee structure applies, beginning Jan. 1, 2023:
| Reallocation of gifts $1 - $4,999 | 5% |
| Reallocation of gifts $5,000 - $24,999: | 4% |
| Reallocation of gifts $25,000 - $99,999: | 2% |
| Reallocation of gifts $100,000+: | 0% |
Because of this one-time reallocation, annual management fees remain low, allowing endowed funds to grow and make an even larger impact over time. Foundation management fees are allocated proportionally to each endowment fund and average .65% annually, applied quarterly at .1625%. The current spending policy for endowed funds is 4.25% of the 12-quarter average as of Dec. 31.
DISBURSEMENT
As a 501(c)(3), the SigEp Educational Foundation follows IRS guidelines for nonprofit organizations. Disbursements from our funds have educational intent in a variety of purposes and the disbursement avenues are listed below. To see instructions on how to request funds click here.
- Scholarships
- Option 1 (preferred): check payable to the university for a specific student’s account
- Student ID number is required
- Option 2: check payable directly to a student for tuition purposes
- Option 1 (preferred): check payable to the university for a specific student’s account
- Sponsorship grants
- Leadership program stipend to attend SigEp regional and national programs. This is typically an internal transfer of funds from the Foundation to the Fraternity.
- Post-program requests fall under the reimbursement type below, with proof of payment.
- Reimbursements
- In this case, an AVC or person is getting reimbursed for scholarships (sponsorships or other) already paid. The documentation should illustrate that a scholarship has already been awarded by the AVC and that the scholarship was awarded for educational purposes.
- Proof of payment (i.e. receipt, check stub) is needed.
- In this case, an AVC or person is getting reimbursed for scholarships (sponsorships or other) already paid. The documentation should illustrate that a scholarship has already been awarded by the AVC and that the scholarship was awarded for educational purposes.
- Facility grants
- RLC grants or CIF grants are typically paid to the AVC for expenses associated with educational spaces.
In fulfilling our mission in support of our students, we operate in an environment governed by IRS regulations as it pertains to safeguarding our 501(c)(3) status. With respect to the use of funds for the purposes of member housing, fraternity member dues or other member expenses, IRS 501(c)(3) regulations are clear that these expenses don’t qualify as educational.
If you would like to establish a new fund* with the SigEp Educational Foundation or assess your current funds and how to create more impact through fund consolidation, please contact Director of Advancement Services Rachel Mason. The Foundation's gift acceptance policy can be found here.
*A gift or a multi-year pledge commitment of $25,000 is required to establish a new endowed fund. For new declining-balance funds, a gift or a multi-year pledge commitment of $2,500 is required.
