Fees and Expenses
NPT CAT charges each DAF a one-time charitable administration fee for establishing and maintaining the DAF. We will also charge supplemental fees for certain special services provided to the DAF and any expenses NPT CAT incurs directly for the DAF's benefit. These fees and related expenses will be deducted from your DAF balance. In certain cases, a donor may need to make an additional contribution to the DAF to cover anticipated or existing expenses. The fees and related expenses include:
1. Charitable Administration Fee
NPT CAT charges a one-time charitable administration fee for each contribution of non-cash assets. Typically, the fee schedule is:
- Up to $1 million - 3%
- For the next $4 million - 2%
- Above $5 million - 1%
The minimum charitable administration fee is $15,000. The fee is calculated as a percentage of the contribution's value when you gift it to NPT CAT or reserves the right to adjust the charitable administration fee based on the amount and type of asset contributed. NPT CAT will outline the fee schedule for your contribution in a Memorandum of Understanding before we accept it.
2. Long-Term Charitable Asset Management Fee
If NPT CAT holds your gift for longer than 365 days, we charge a supplemental fee. This fee totals 1% annually and is based on the asset's value at the time you gift it to NPT CAT or at the time of its sale—whichever is greater. NPT CAT reserves the right to adjust the charitable administration fee structure for inflation or for any contributions held for more than 36 months.
3. Related Expenses
NPT CAT may hold an asset for a period of time prior to its sale. In general, the length of time NPT CAT holds the asset is based on market conditions. You are responsible for making additional contributions to cover any costs that NPT CAT incurs while holding the asset.
We will notify you of any related costs that NPT incurs on a quarterly basis.
Related expenses can include but are not limited to:
- Protection - Protecting and holding the asset, such as insuring it
- Documentation - IRS filings, financial statements and other related record keeping
- Financial and Tax Reporting - Financial recordkeeping and tax-related activities including but not limited to filing federal, state and/or foreign forms
- Audit Management - Document preparation for internal and external audits
- UBIT - Monitoring of any unrelated business income tax and paying the porportional tax
- Illiquid Asset Costs - Managing and maintaining an illiquid asset