Did you know that AccuFund Accounting offers endowment accounting as a specialty use of the software? This exceptional solution gives foundations and other nonprofits with endowments a complete financial solution for tracking, accounting, and reporting named and combined endowment funds. With the solution, a foundation can track the original corpus of a named fund, gains and losses, market and book value on the investment, spending policies, management fees, actual donations, and expenditures.
AccuFund software’s Endowment Accounting provides the needed controls and reporting to meet UPMIFA (Uniform Prudent Management of Institutional Funds Act) requirements. This uniform act provides investment and endowment expenditure guidance to nonprofits, but it has not yet been adopted in Pennsylvania or Puerto Rico. A recent change to UPMIFA is that investing and spending will be at a rate that will preserve the purchasing power of the principle over the long term. In the past, nonprofits could not spend below the original value of contributions. In essence, UPMIFA now allows organizations to spend from an underwater endowment if the board sees this to be prudent based on certain parameters.
AccuFund helps endowments preserve donor intent of principle and also tracks corpus updates. This is necessary if market conditions go downward again as they have in the past. To learn more about AccuFund Endowment, please contact us here at RBP Methods.