If you’ve been following our Planned Giving Series, we’ve been sharing real-world challenges that our nonprofit clients have faced and how they’ve benefited by outsourcing their gift administration. But how does this benefit not only nonprofits but the entire philanthropic sector? Accurate and timely multilevel sub-accounting (more on that later) is not only crucial to the success of any organization that has an endowment, but it also builds donor trust by creating transparency. To put it simply: good reporting demonstrates fiscal responsibility and is the foundation of excellent donor stewardship.
In this next example, the experts at PG Calc are sharing how one of our nonprofit clients untangled a “monster of a spreadsheet”, resulting in clean reporting.
But First…What Is Gift Administration?
We’re not going to sugarcoat it—administering a planned giving program is complicated and time-consuming. Frankly, it requires experts like our PG Calc team to ease that burden. One of the services we provide under this umbrella is endowment sub-accounting, which is essential for nonprofit organizations that want to combine gifts in their endowments. For financial advisors, sub-accounting enables commingling of different funds for investment purposes with an endowment being just one example.
Multilevel Sub-Accounting 101
Multilevel sub-accounting is critical for organizations that want to combine gifts in their endowments for investment purposes while still maintaining detailed records of individual gifts or funds for accounting and donor reporting purposes. It ensures financial accuracy and reporting integrity.
It’s a way for a nonprofit or charity to demonstrate fiduciary responsibility and transparency in how it faithfully stewards each donor’s gift. Sub-accounting generates donor reports that detail the impact each donor’s charitable giving has in helping an organization achieve its mission.
Check out this real-life challenge our nonprofit client was facing and how PG Calc swooped in to save the day.
Challenge #4:
A new CFO inherited an ugly monster of a spreadsheet and needed to make sense of 60 sub funds to get clean reporting.
Working with PG Calc
“Thirty days of a new fiscal year were already behind me when I started my new job,” said Elizabeth Jane Brown, Chief Financial Officer of St. Andrew’s-Sewanne School. “The annual audit was pressing in, and there were numerous reconciliations and closing entries begging for attention. It was staggering at best. I then discovered that in order to complete the net asset roll forward, I had to reconcile what was called ‘the unit calculation spreadsheet.’ This ugly, monster of a spreadsheet consisted of multiple funds with approximately 60 sub funds. This horrid spreadsheet was laced with a wide array of dizzying colors and complex formulas. I couldn’t get my head around it, but knew it contained errors. My darkest hour.”
“Then, through a series of phone conversations, I was introduced to PG Calc, and there was light! PG Calc changed my life. Jill, our Senior Project Manager, took that mess of numbers and turned it into a simple and reliable process. Now each fund and sub fund is tracked and calculated accurately and reported back to me in an organized and streamlined manner. Our journal entry is even prepared by PG Calc. All I have to do now is simply upload the entry and verify the numbers with our quarterly investment statements. It has worked perfectly every time. Now with three quarters behind us, I can’t speak highly enough of PG Calc and the time-saving, exceptional service they offer. Jill is phenomenal and a joy to work with. I wholeheartedly endorse PG Calc,” said Elizabeth.
PG Calc would like to thank St. Andrew’s-Sewanne for sharing their story with us!
When you think of multilevel sub-accounting, think of it through the lens that the entire philanthropic landscape deserves to have confidence when it comes to their sub-accounting, which enables the pooling of endowment funds for best returns. But it all starts with having the right partner to ensure the accurate and timely reporting on each sub-account. For organizations that want to demonstrate fiscal responsibility and provide exceptional donor stewardship, reliable reporting is a must.
See how PG Calc can help with endowment sub-accounting.
Want to learn more about planned giving?
Check out the PG Calc Blog.
Want to learn more about the ways we support donors, nonprofits and advisors?
Schedule a call with us or reach us at 800-839-0054. Together, let’s #begiving.
