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The challenge of sustaining a healthy endowment to support future generations, the implications of income and capital gains on tax exempt entities, and the sensitivity of donor relations to nonprofit organizations are some of the unique needs of endowments and foundations. In understanding the complexity of the nonprofit world, The Bank of New York Mellon offers its web-based communications system, INFORM, to assist its endowments and foundations (E&F) clients in making their investment decisions.
INFORM provides a multitude of accounting reports for clients, which allows them to obtain information on audited (monthly/annual) data and unaudited (daily) data. As the value of an endowment changes daily, it is important for clients to know where they stand at any point within the month. INFORM allows E&F clients to view the book and market values of one account or of the entire portfolio, both in summary and detail. Not only does this enable clients to manage their endowment closely, it adds significant value to mid-month board meetings.
Understanding the importance of risk/return analysis to E&F clients, INFORM offers a full range of performance measurement and analytics reporting. Some of the features include asset allocation, rate of returns, benchmark analysis, custom blends, time/dollar weighted rates of return, numerous financial ratios, performance attribution, security characteristics, and universe comparisons. In addition, boardroom quality reports can be generated, which include financial ratios, analytics, and graphics.
As many endowments and foundations are subject to certain guidelines, compliance monitoring is another vital asset to E&F clients. Using INFORM’s compliance reporting, E&F clients can easily track a manager’s adherence to investment objectives. For example, if a religious organization is forbidden from investing in "sin stocks", INFORM can notify the client via email if one of their investment managers violates this mandate. Quality ratings, issuer restrictions, and benchmark comparisons also aid E&F clients in adhering to their organization’s regulations.
INFORM also has the ability to export information to Excel, allowing numerous reports to be created and customized, thereby giving E&F clients additional control over their accounting information. Holdings reports allow our clients to view the assets held within their portfolio, so that they can check on late breaking news. The various transactions reports assist clients in monitoring gift accounts for donor’s gifts, tracking alternative investment distributions, and ensuring proper income postings.
To find out more about the specialized suite of products and services offered to endowments and foundations, please contact: Endowments & Foundations
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