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Fund Allocation of Gifts to Cover Operating Projects

  • 1.  Fund Allocation of Gifts to Cover Operating Projects

    Posted 08-11-2022 12:11 PM

    Hello,

    I'm new to the FundSvcs Community! We have a board member who is making a gift to cover an operating project (capital repairs). The expense to the university comes out of an operating fund, but I want to make sure we book his gift to a philanthropic fund.

    How have you all handled this with your Advancement Services and Finance teams?

    Thanks,

    Sarah



    ------------------------------
    Sarah Sokora
    Director of Advancement Services
    University of Dallas
    sdsokora@udallas.edu
    ------------------------------


  • 2.  RE: Fund Allocation of Gifts to Cover Operating Projects

    Posted 08-11-2022 12:27 PM
    I often wonder why institutions create multiple funds for "similar" purposes.  At most institutions, I work with (including the 20 years I was at Duke and NC State), one fund handled everything.

    Fund structures allow for coding to reflect the nature of a transaction.  For example, the fund structure at Duke was NNN-NNNN-NNNN-NNNNN.

    The third field in the string determined what sort of transaction was hitting the GL.  So, let's take a building fund for example:

    The construction account for the John Taylor Law School Wing (made up!) is 749-1234-3252-45678

    The first seven positions are the actual account number.  The next two (32) indicate "gift."  The next two (52) indicate "alumni."  The last five are more granular.  They could identify a specific component of the wing.

    Anyway, fund 749-1234 is also the account money would be spent from.  There's no need to have two different funds - just different codes in that third field!

    John

    John H. Taylor
    Principal
    John H. Taylor Consulting, LLC
    2604 Sevier St.
    Durham, NC   27705
    919.816.5903 (cell/text)

    Serving the Advancement Community Since 1987






  • 3.  RE: Fund Allocation of Gifts to Cover Operating Projects

    Posted 08-16-2022 09:25 AM

    We book gifts to any type of GL fund we need to – with a few exceptions*. We simply use a gift revenue object for the transaction.

     

    *There are of course controls for prohibiting booking gifts to accounts where gift revenue cannot live like endowment income accounts.

     

     

    Aaron Forrest CPA

    Senior Director Gift and Donor Services

    University of Rochester Office of Advancement

    585.275.2799 | aaron.forrest@rochester.edu