Foundation Source Enhances Philanthropic Solutions with New Endowment Sub-Accounting Feature

Foundation Source Enhances Philanthropic Solutions with Endowment Sub-Accounting

Foundation Source, a prominent player in the sphere of philanthropic solutions, recently announced a significant upgrade to its offerings by integrating Endowment Sub-Accounting capabilities into its comprehensive PhilTech suite. This enhancement aims to cater to a more extensive range of organizations, thereby fostering a more efficient and transparent approach to managing philanthropic assets.

Addressing Modern Philanthropy Needs

As the landscape of philanthropy evolves, organizations are increasingly seeking solutions that provide clarity and simplicity. Recognizing this demand, Foundation Source has further developed the Endowment Sub-Accounting feature, which is now accessible to a broader audience. This feature, previously utilized primarily by clients through its planned giving division, PG Calc, reflects the company’s commitment to delivering comprehensive, technology-enhanced solutions tailored for donors, nonprofits, and institutions.

Joseph Mrak III, CEO of Foundation Source, stated, "Philanthropy is evolving fast, and technology is the key to making it work better for everyone. Endowment sub-accounting is a great example of how we're simplifying complexity."

This new functionality allows for efficient multilevel sub-accounting, essential for organizations managing multiple donations pooled for investment purposes. By shifting from time-consuming manual tracking to a sophisticated, purpose-built system, nonprofits can streamline their fund management processes. The system not only simplifies fund tracking but also enhances audit preparedness and ensures that detailed, custom reports are readily available for stakeholders.

Capabilities of Endowment Sub-Accounting

The Endowment Sub-Accounting functionality is designed to meet the demands of various organizations, including private foundations, donor-advised funds (DAFs), and nonprofit endowments. Here are some key features it offers:

1. Transparent Donor Reporting: Organizations can now track each fund’s income, expenses, and balances over time, ensuring clarity in financial reporting.

2. Operational Efficiency: This feature supports unified investment pooling while also maintaining detailed accounting at the fund level, enhancing operational processes.

3. Compliance and Audit Readiness: With consistent allocation of earnings, losses, and fees aligned with donor intent and established accounting standards, organizations can easily maintain compliance and readiness for audits.

4. Scalability: Whether an organization manages a handful of funds or thousands, this solution is designed to scale effectively to meet any operational demands.

5. Comprehensive Functionality: The software automates the unitization of gifts and withdrawals, allocates interest, dividends, fees, and investment gains/losses across sub-accounts, and provides customizable reports to stakeholders.

Gary Pforzheimer, President of Planned Giving at Foundation Source, reinforced the importance of this upgrade: "With more nonprofits managing multiple restricted and endowed funds, accurate sub-accounting isn't a luxury – it's a necessity."

Conclusion: The Future of Philanthropy

The expansion of Endowment Sub-Accounting capabilities comes at a vital time when the demand for transparency and effective stewardship is on the rise among nonprofits and community foundations. By integrating this advanced feature into its PhilTech platform, Foundation Source is not only improving its existing services but is also simplifying the overall experience for donors and nonprofits alike.

With the commitment to amplifying impact and making strategic philanthropy accessible, Foundation Source continues to demonstrate its leadership in the philanthropic sector. Its innovative solutions will undoubtedly contribute toward a more transparent and effective philanthropic landscape in the years to come.