Community Foundation Boot Camp. Unit 3 Finance/Investments. Stewardship and Fiscal Responsibility. Good stewardship involves the following:. Fiscal accountability Managing risk Operational sustainability Protecting donors intentions. Items to be covered. Fund Accounting Investments
Good stewardship involves the following:
Unrestricted Net Assets
Temporarily Restricted Assets
Permanently Restricted Net Assets
Investment Committee - Reports and processes dealing with the investment of endowment assets
Finance Committee - Reports and processes dealing with budgets, interim financial statements, etc.
Audit Committee - Oversees selection of auditor and annual audit
One committee can handle these responsibilities!
Oversees all issues pertaining to the financial status of the community foundation and interpreting this information for the full board Tasks Include:
Auditors work for you–understanding your policies and procedures are important.
The purpose of an investment/spending policy is to provide sufficient return to support the foundation’s cash needs, provide for inflation and to protect the historic gift value of the endowment funds.
Items to include:
The foundation makes payouts for grants and administrative fees from the earnings of the endowment funds each year. In order for the endowed assets to grow, the net totalreturnmust be enough for the annual payout needs plus inflation and real growth over time.
Investment or Fund Manager:
The Foundation should periodically review its relationship with its investment advisors/managers to assure optimal investment performance.
When it Comes to Sustainability, Not All Revenue Sources
are the Same, Some are Much Better than Others
How do you budget for these?
How do you pay for these?
Know your audience
Committee & Board Reports
Why is This Important?
Who is Responsible for the Audit?
AUDIT = FASB rulesLEGAL = UPMIFA, IRS 990
Financial Accounting Standards Board – FASB
Federal Form 990 and Internal Reporting