Everyone across the entire philanthropic landscape—from individual donors and private foundations to advisors and financial institutions—benefit when giving is easier, more impactful and transparent for nonprofit organizations. In this edition of our Planned Giving Series, our experts at PG Calc are sharing another real-world story from one of our nonprofit clients showing how they have benefited by outsourcing their gift administration. Read on to learn more about this key component of planned giving—and how it ultimately benefits donors by ensuring their planned gifts are managed efficiently and accurately.
Gift Administration 101
Administering a planned giving program is complicated and time-consuming and it requires experts, like our PG Calc team, to ease that burden. Under this umbrella is a service we provide, called 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.
What Is Multilevel Sub-Accounting?
As a refresher ICYMI our last blog on this topic, 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.
So how does this benefit the entire philanthropic ecosystem? It builds donor trust and demonstrates a nonprofit’s or charity’s 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.
Here’s how one of our nonprofit clients was able to quickly pivot when their previous accountant discontinued their accounting service without much notice.
Challenge #3:
Left in a pinch by their previous accountant, the Trustees for the Episcopal Diocese of Western Massachusetts must replace a core sub-accounting function to stay on track with their reporting.
Working with PG Calc
“The Trustees for the Episcopal Diocese of Western Massachusetts invest the funds entrusted to us by our participating parishes and the diocese itself,” said Mick Kalber Executive Director Trustees for the Episcopal Diocese of Western Massachusetts.
“As fiduciaries, we are keenly aware of the performance requirements of our Fund and the service to our shareholders. We revalue our portfolio quarterly and rely heavily upon the quarterly shareholder statements generated by PG Calc. Four years ago, our previous shareholder accountant informed us that they were discontinuing such accounting activity, and we had little time to find a replacement. We approached PG Calc and were delighted that they easily grasped our operation and reporting requirements. Working with a team led by Helene Darby, we transitioned to their reporting arrangement without difficulty. I have enjoyed an efficient and reliable relationship with my primary contact, Jeff Piazza. He responds in a timely fashion to my questions and requests. Jeff produces six reports for us each quarter, each of which allocates components of that quarter’s performance over each sub-fund owned by each shareholder. He is also able to meet the tight report deadline each quarter. I truly appreciate that the Trustees and PG Calc have gotten to work together over these past three years and truly perform as a team,” said Mick.
PG Calc would like to thank The Trustees for the Episcopal Diocese of Western Massachusetts for sharing their story with us!
Accurate and timely multilevel sub-accounting is the key to success for any organization that has an endowment. The nonprofit community (and the entire philanthropic landscape) should have confidence when it comes to their sub-accounting, which enables the pooling of endowment funds for best returns. Remember that having the right partner is key when it comes to 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 philanthropists and their advisors with private foundations?
Schedule a call with us or reach us at 800-839-0054. Together, let’s #begiving.
