Written by Erin Delehanty.
Monitoring foundation restricted funds is important to identify and address those with little activity or low balances. Although these activities can be monitored throughout the year, Foundations Accounting & Investments (FAI) prepares an annual list of questionable funds to assist units in this process. This list is designed to maximize the use of the foundation’s resources.
Every March, units will receive a list from FAI of funds that have balances of $1,000 or less and funds that had no transactions during the fiscal year to date. Units will be asked to review the list and provide next steps for each of the funds. These may include transferring the balance to another fund with a similar purpose or closing projects with zero balances. In the instance, there is a valid explanation for little or no activity. This explanation should be documented and no additional steps are necessary.
Notifications are sent to FAI’s business office contacts and will include specific instructions on how to reply and a deadline to respond.