We hope you enjoyed the first issue of our Planned Giving Series where we explored the basics of Planned Giving—including why donors may want to consider these programs and how they can be integrated into other charitable vehicles and activities. As we continue to expand our suite of solutions, we remain committed to providing specialized support and expertise across the philanthropic ecosystem — to donors and nonprofits and their various advisors. In our next installment of this series, we’re taking a closer look at how the nonprofit community (and the entire philanthropic sector) benefits when giving is easier and more impactful.
Nonprofit organizations are benefiting from a key component of planned giving: gift administration. Without the right partner, planned gift administration can be time consuming and complex—and that’s where our PG Calc experts come in. One of the gift administration services we provide is endowment sub-accounting—this is critical for nonprofits that want to combine gifts in their endowments. For financial advisors, sub-accounting enables commingling of different funds for investment purposes, and an endowment is just one example.
What Is Multilevel Sub-Accounting?
Multilevel sub-accounting is essential for organizations that want to combine gifts in their endowments for investment purposes but maintain detailed records of individual gifts or funds for accounting and donor reporting purposes. At its heart, endowment sub-accounting is about financial accuracy and reporting integrity. But it can be much more than that. It is also crucial to building donor trust, demonstrating a nonprofit’s or charity’s fiduciary responsibility and transparency, and showing the impact each donor’s philanthropy has in helping an organization achieve its mission.
When it comes to understanding the impact endowment sub-accounting can have on a charity, there’s no one better to ask than one of our nonprofit clients. We’ll be sharing their stories in upcoming issues of this series. In this first story, you’ll learn more about the specific challenges faced by a charitable organization focused on the arts.
Challenge #1:
The Society of the Four Arts had to change sub-accounting partners and divest all the holdings related to a specific fund to ensure they met all reporting deadlines.
“The Society of the Four Arts has worked with the PG Calc team for over two years,” said Gloria Ortega Rex, a CPA, MBA and Chief Financial Officer of The Society of the Four Arts. “PG Calc is well known in the foundations and endowment world. As such, when selecting a company to complete and report on the sub-accounting for the organization’s endowment, it was not a difficult decision to select them. The transition to PG Calc from the institution that performed the sub-accounting was seamless. PG Calc has been able to replicate the reporting the Four Arts had in place without any issues,” said Gloria.
Working with PG Calc
“We have worked with the same team since then,” said Gloria. “Their work is timely, and they are very receptive to specific requests, allowing a seamless and timely closing at month and year end. In one specific instance, we divested all the holdings related to a particular fund because of a change in investment manager, and PG Calc assisted and complemented the work of the internal team to properly reconcile the fund. It is a pleasure to work with such a professional and competent team,” said Gloria.
PG Calc is proud to support The Society of the Four Arts, and we thank them for sharing their story with us.
Accurate and timely multilevel sub-accounting is crucial to the success of any organization that has an endowment. Confidence in a sub-accounting partner enables the pooling of endowment funds for best returns. The benefits go well beyond accurate and timely reporting on each sub-account. Good reporting demonstrates fiscal responsibility and is the foundation of excellent donor stewardship.
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.
