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The Foundation may assess a 5 percent establishment fee on all gifts restricted to specific purpose, as well as a 1.25 percent annual management fee on the remaining balance in those funds and endowments restricted for a specific purpose. Gifts made to the unrestricted Naval Academy Fund, or to class projects that include a portion to the Naval Academy Fund, are exempt from these fees. Income from these fees helps fund the Foundation’s operations as well as those of the Alumni Association.