FIELD OF INTEREST FUND FEE UPDATE

Berkshire Taconic is charting a course that will allow us to more deeply engage in our mission of building stronger communities by inspiring charitable giving. As part of a board-led strategic planning process, we have conducted a cost analysis for all activities related to each type of fund we offer. 

One finding from this analysis is that a significant portion of the foundation's limited staff time is being spent processing the high number of transactions for Field of Interest funds (including education enrichment funds and scholarships), rather than on growing these assets and expanding long-term grantmaking. In order to better share those costs and make our lean staff more available to partner with our communities, the board has recommended the following change to our administrative fee structure:

As of October 1, 2015, the fee schedule for Field of Interest funds is as follows:

  • 2.0% per year on first $1 million
  • 1.5% per year on portion $1 million-$3 million
  • 1.0% per year on portion $3 million and above

In addition, Field of Interest funds that opt to fundraise for gifts for immediate spending rather than endowment-building will be assessed a quarterly fee of 10% on those gifts. At the end of the year, if some of those funds are instead transferred to endowment, the fees will be reversed. This fee change will take place as of January 1, 2016.

We welcome your input on these and future changes. Please direct any questions to A. J. Pietrantone, Vice President of Finance and Administration, by email or phone at 413.229.0370.