Administrative Fee Overview

Written by Dana Kinsey

Last published at: April 1st, 2021

Admin fees (e.g. administrative fees or fund fees) refer to the fees that your foundation charges to manage a fund. In CommunitySuite, there are three components to admin fees:

  • Funds
  • Admin Fee Types
  • Accounts

Components

Funds

Admin fees involve two funds: 

  • The fund receiving the admin fee revenue (this will normally be your foundation's Operating Fund).
  • The fund being charged/assessed (such as a Donor Advised Fund).


Fund Admin Fee Settings

Within the fund settings of each fund is a section titled Admin Fee Settings. This is where you assign admin fee types to a fund, and can configure advanced admin fee settings such as designating a different fund to pay the fund's admin fees.

For more information about the additional settings, log into your site and hover your cursor over the question mark next to a setting.


Admin Fee Types

Admin Fee Types define how your foundation charges admin fees to specific funds. Admin fee types have two components: the Fee Type (i.e. how the fee will be assessed), and the Apply Fee (i.e. when the fee will be assessed). Different combinations of Fee Types (such as flat fee, or percent) and the Apply Fee (such as per each donation, or a set interval) can be configured to fit the needs of your foundation and funds.

(Please see Admin Fee Types and Calculations for more information about admin fee types)


Accounts

The Admin Fee Revenue and Admin Fee Expense accounts are system default accounts that must be set in order to process admin fees. These are normally configured during your implementation.

When a fund is charged admin fees, the transaction is recorded as a debit in the Admin Fee Expense account, and a credit in the Admin Fee Revenue account- as well as the default Checking Account that's assigned (in the Cash Management section) of the fund.

Please note that if a specific Admin Fee Account has has been designated in the fund's Admin Fee Settings, this will override the default Checking Account specified (in the Cash Management section) of the fund. For example, if you designated an investment account as the Admin Fee Account in a fund's Admin Fee Settings, the checking account (shown in the multi transaction detail above) would be replaced with the investment account.