30 | Page
Expenses include, but are not limited to legal fees, taxes, mortgage and interest payments,
insurance, utilities, and other costs incurred by the DSO or REF. For those properties designated
for immediate resale, unless the DSO or REF has agreed in writing to carry the Expenses and to
be reimbursed for the Expenses from the sale proceeds of the property, the Expenses, once
incurred by the DSO or REF, are payable on demand. If, however, a decision is made to retain
the property for a period to maximize its ultimate benefit to the University (the “Holding
Period”), the university unit benefiting from the donation of the property is would be responsible
for paying the Expenses noted above during the Holding Period. The donor’s or university unit’s
written agreement to this arrangement shall be sufficient to authorize the DSO or REF to disburse
funds for the Expenses from the beneficiary fund, or, if that fund has insufficient cash assets,
from another fund of the unit designated by its dean or chair. The DSO may also agree to carry
such costs incurred during the Holding Period and to be reimbursed for them from sale proceeds
or accumulated earnings.
6.1
The Real Estate Foundation
The REF is a resource available to the DSOs in accepting gifts of real property for the purposes
as intended. Gifts with and estimated market of $1,000,000 or more require approval by the REF
Board. Gifts with an estimated market value of less than $1,000,000 may be brought to the REF
for review and/or assistance, but do not require approval by the REF Board.
Support for the REF is provided, in part, through two separate mechanisms in the gift acceptance
process. For assets held or managed by the REF, an annual Management Fee will be assessed
and, unless otherwise agreed to in writing by the REF, billed no later than on an annual basis to
the university unit on an annual basis. The Management Fee currently ranges from 50bps to
100bps (0.5% - 1.0%) and is dependent upon the effort required to manage and maintain the asset.
This fee structure is established by the Board, is subject to change, and is applied by the Vice-
President (or designee) of the REF.
In addition to the Management Fee, the REF receives support in the form of a 5% distribution of
the proceeds of real estate gift (“the Distribution”). For gift acceptance on behalf of other DSOs
or University Units, the REF requires the Distribution as a method of underwriting the time and
effort necessary to accomplish gifts of real estate. This distribution is payable to the REF at the
time the REF conveys title to the property to another party in a sale, transfer, or other means, or
three years following the date of gift acceptance, whichever occurs sooner. In the case of a
property to be held by the REF for an indeterminate time on behalf of a University Unit, the
Distribution is payable immediately following the REF’s receipt of title to the property. This
Distribution applies to all gifts for which the REF is asked to review or assist. The REF’s Vice
President shall have the discretion and authority to waive either of these funding methods in
relation to the Florida State University Foundation for as long as the latter contributes significantly
to the REF’s annual operating budget.
The REF actively solicits gifts of real property. In addition, in furtherance of its mission, the REF
may acquire interests in real property by non-gift means for use by the University.
The REF markets gifts of real property unless the University intends to retain the property for