Market Earnings as Spendable

AmyOwenAmyOwen Posts: 5
First Compass Anniversary 5 Likes Conversation Starter
edited September 2021 in Finance & Operations

We have a policy that allows our DAFs to earmark a portion of their gift(s) as endowment OR spendable (or both).

In the event of market gains and based on the way Foundant's Fund Advisor Portal portrays details, any market earnings do not show up on the Fund Holder's landing page. That causes confusion.

Similarly, we wonder if there are CFs that allow a donor to recommend a grant from their Spendable AS WELL as current-day investment earnings.

For instance: $100,000 gift.

$10,000 is endowment

$90,000 is held as spendable. All funds are in the market (our practice after a conversation with our donors about grantmaking horizons)

$10,000 in ADDITIONAL unrealized market earnings are achieved.

Do you allow for a $100,000 grant, realizing market earnings for the grant?

Thanks loads. Amy



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    Thanks for your question, @AmyOwen! Bumping it back up to the top of our recent discussions to see if any Compass members can chime in!

    Kara Adams, M.Ed., CAE (she/her/hers)|Community Manager|kara.adams@foundant.com

    Headquartered: Bozeman, MT| Remote Location: Chicago, IL | Direct: 312-802-1374 |www.foundant.com|

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    kathleensaycekathleensayce Posts: 16 ✭✭✭
    First Comment U.S.A. CSuite First Compass Anniversary
    edited December 2021


    Is there a reason why the endowment is so small compared to the spendable?

    Is there an endowment goal for this fund?

    As for current value--that difference of $10K in value is an unrealized capital gain, which you can realize by selling the stock, then make a grant. If your policy allows a DAF manager to track the value and propose a grant amount when fund value is well above the original donation, then there's probably no other issue to consider.

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