Endowment Fund Overview
An endowment fund creates revenue to be used for a specific purpose. The principal amount of the fund is not disbursed but invested in to create a steady return that is used to support both the personal and institutional means of the fund.
CTAC Program Initiation
- Review entity provisions and enter pertinent data into administration system
- Analyze gifts for suitability as an asset for the fund and advise the trustee regarding related issues or concerns
- Ascertain the cost basis and holding period for all fund assets from information provided by the trustee
- Collect legal, financial and tax documents and records used to establish the entity and its relationship with the trustee, trust administrator and investment manager(s)
Client Communication
- Fund valuation report
- Report on annual distributions
- Detailed sub-account report for each fund
- Prepare and file IRS form 8282 and 1099 when applicable
- Summary accounting of fund activity, including: receipts (by tax character of income), disbursements attributable to the fund amounts, expenses, capital losses, and the unrealized appreciation in the market value of assets
Operational Services
- Monitor distributions based on fund performance, asset valuations and Federal & State requirements
- Obtain and record financial transactions received from investment manager(s)
- Review all investment and operational transactions for accuracy and Federal & State regulatory compliance
- Determine tax character of each financial transaction
- Request and coordinate the receipt of the distribution amount to be paid to all beneficiaries by the investment manager(s)