Onboarding to Foundation Source services includes organizing the foundation’s financial accounts, accounting for the previous year’s holdings, establishing financial data feeds, readying a disbursement account, and displaying financial information on the foundation’s online platform. The foundation’s dedicated Private Client Advisor (“PCA”) spearheads onboarding, with support from our tax, legal, accounting, and financial operations teams.
Our first step is to compile information on all of the foundation’s financial accounts to provide a complete picture of its assets and expenditures. Next, we reconcile the year-end value of the foundation’s assets to the prior-year return to confirm we have properly accounted for all holdings. For securities, we record the cost basis or tax lot history for each security held in the foundation’s portfolio. If any of the shares in the portfolio were donated to the foundation, rather than purchased directly, we obtain the book value of those shares as well. We obtain from the foundation or its advisors' prior year-end valuations and the cost basis of non-marketable assets, such as partnerships or artwork, since alternative assets do not always have this information readily available. If there is depreciation on assets held, we coordinate with the prior return preparer unless all of the details are disclosed on the foundation’s prior return.
A disbursement account is created to streamline and accelerate the processing of foundation grants and expenses. In addition, we work with each financial institution to obtain prior statements and establish connectivity for ongoing receipt of financial data. Since this process can take time, we create a balance file so that foundation assets appear on the client’s platform while all of the data is gathered and entered.