As a service agency of the church, the Foundation does not charge a fee in the normal sense. Instead, we provide our services on a cost-sharing basis across all of TPF’s pooled investment portfolios. The costs of operating the Foundation, including our own operating expenses and overhead costs, along with the fees we pay to third-party investment managers, custodians and consultants, are charged directly to the pooled funds. We do not mark up these costs in any way.
Additionally, our operating expenses are offset by income from the Foundation’s Trustees’ Endowment Fund, lowering the costs passed up to our investors even further.
Although the cost varies from fund to fund because of differing third-party investment expenses, on an overall basis the total cost charged to pooled funds ranges from about 0.5% to 0.7% of assets managed.
Ordinarily, no additional fees are charged to client accounts. TPF’s management fees include all of the Foundation’s consulting and development services as well as the administration of trusts, gift annuities and other services. TPF does provide certain customized special services for several clients, for which a separate fee arrangement may be applied, and there is a separate fee for the management of assets not invested in the TPF pooled funds.