IM Enterprise. Guide to Fund Investment Management and Grants, for Community Foundations

Transcription

1 IM Enterprise Guide to Fund Investment Management and Grants, for Community Foundations The Chart of Accounts, Funds, Fund Investment Earnings and Fund Fees are managed through the Accounting module. Your accountant should advise you on creating your accounts and account categories. Chart of Accounts The following are suggestions about the types of accounts you can create to help manage your funds and investments. See the Guide to Accounting about how to create accounts. Asset Accounts Create Asset accounts: Create one or more Pooled Investment accounts, i.e. RBC Investments. Check the Pool checkbox to indicate that this is an investment pool. Associate these accounts with the Account Category; Investments. 1

2 Note: You may have all of your funds with one investment house, i.e. RBC Securities, but your funds are distributed among 3 different investment accounts such as; Endowments, Flowthrough, Operating, each of which reports different investment earnings. In this case, create 3 separate Pool Accounts, one for each investment account; RBC-Endowments, RBC-Flowthrough, RBC-Operating. 2

3 Income Accounts Create Income Categories: Create an Income Category; Capital Gains and Losses Create an Income Category; Capital Contributions Create Income Accounts: Realized Capital Gains Unrealized Capital Gains Realized Capital Losses Unrealized Capital Losses Associate these accounts with the category; Capital Gains and Losses. Check the Capital checkbox for each account to indicate that these accounts are capital. 3

4 Create Income Accounts: Donations-Capital-Cash Donations-Capital-Securities Associate these accounts with the category; Capital Contributions. Check the Capital checkbox for each account to indicate that these accounts are capital. These accounts will be used to track capital donations to Funds. Determine which Income Account will be used to credit your admin fees, or create a new Income account such as; Admin Fees and use this account to credit your agency s admin fees to your General Fund. 4

5 Expense Accounts Create an Expense Category, Grants Paid, to track Expense accounts for grants paid to others. Create an Expense account to track Grants paid to others and associate this account with the Grants Paid category Create Expense Accounts: Determine which Expense Account will be used to debit your managed funds when admin fees are charged, or create a new Expense account such as; Admin Fees and use this account to debit the funds of your agency s admin fees. 5

6 Create Net Asset Categories: Create Net Asset categories and Net Asset accounts as required. Create Funds: Funds are sub accounts of Net Asset (Equity) accounts. In this way, multiple Funds can be associated to a Net Asset account to help you organize and report on funds as a group. Create a General Fund, or similar if you don t have one. This is the fund to which your admin fees will be credited when you apply your fees to your managed funds. Presumably this fund is in a pool along with other funds so as to earn interest. If so, associate this Fund with a Pool investment account. Create your other investment Funds as needed. Associate a Fund with a Fund Holder if you have one; (see below about creating a Fund Holder). A Fund Holder can hold multiple Funds, but each Fund can only have one Fund Holder. Associate these Funds with a Pool investment account. Closed indicates that only the Fund Holder, or related family members, should be contributors to this fund. Provide a Fund Description as required. 6

7 Note: All Income transactions must credit at least one Fund, but may credit multiple Funds within a single transaction All Expense transactions must debit at least one Fund, but may debit multiple Funds within a single transaction Each Fund must be associated to one Net Asset account. 7

8 Create Constituent Types: In the Admin module create two Constituent Types: Fund Holder, and Grant Applicant Create other constituent types that may be relevant to your agency; such as Professional Advisors, Community Partners, etc. Make your Fund Holder constituents the fund holder of the appropriate Fund through the Accounting module. A Fund Holder can hold multiple Funds, but each fund can only have one fund holder. 8

9 Create Investment Rules: Create one or more Investment Fee Rules to set up how your Admin Fees will be applied. Select the Funds that apply to this rule. Check the Investment Fees checkbox. The Fee Percent will be debited against all the Funds you have selected as of the balance of those Funds on the day you apply this rule. Determine in advance, the frequency that you will be charging admin fees to your funds. If you charge 1% per year but want to apply the fee quarterly, then set the percent to.25% You have to option to charge one fee for funds within a certain range and another fee for funds within another range. To do this you will need to create a second rule. If you use more than one rule be certain that the ranges do not overlap between the rules. If you enter a Rule Start Date and/or Rule End Date, then the rule can not be executed anytime before the Start Date or after the End Date. 9

10 Investment Fees Execute you Investment Fee Rule(s) Set the dates for the period that you are charging admin fees. The system calculates the Fund balances of the included funds as of the End Date you indicate. Provide a description. Select the Fund to which the accumulated charges will be credited, i.e. income to the General Fund Process the rule. View the report. 10

11 Investment Earnings Set the date range for which you are applying investment earnings. Select the Pool to which these earnings apply. Select the Income Account that will be credited. Enter the amount of the earnings. Process the earnings. This allocates the proportion of earnings to the pooled funds based on the daily weighted average of the funds in the pool. View the report. View the Earnings Report 11

12 Grants Management Configure the Grants Category Click the Activity Menu; Select Grants in the Activity Type dropdown list. On the Activity Types Menu select Grant from the MenuID, and then select Notes from the MenuID Order the menus 1 and 2 respectively as below Close the form 12

13 Click Activity Types button beside the Grants category to open the Related Activity Types form. From the first dropdown box select Grants. This configures the system so that you can track grant applicants and the details of their application to your Foundation. 13

14 Create Programs See the Guide to Programs about how to create and configure programs. Create a Grants Program under the category Grants Create sub programs under Grants Program for each year. i.e Grants, 2010 Grants, 2011 Grants. Track a grant applicant and their application. 14

15 Grant Payments Grant Cash Payment Grant Payable 15