The Foundation for Enhancing Communities (TFEC) can perform many internal business functions for independent nonprofit organizations and foundations. Under this kind of arrangement your organization remains the legal owner of its financial assets and maintains its own governing body. TFEC provides a selection of services for a fee guided by a Management Services Agreement.
The activities covered by the one-time set up fee includes the establishment of a bank account and a general ledger, the establishment of an investment account, and the transfer of assets into the proper investment accounts.
Depending on the needs of your organization, there are a variety of services that TFEC offers including:
Transactional Services
• TFEC accepts all donations, including cash, checks, credit cards (client is responsible for having a credit card processing provider), publicly traded, and closely held securities, real estate, insurance policies, and other non-traditional assets and acknowledges all gifts to donors.
• TFEC prepares and records all investment bank journal entries and makes all investment pool allocations.
• TFEC calculates fees on all funds, processes all grants and scholarships, and makes all vendor payments.
Financial Reporting
• TFEC creates and issues financial reports including; a statement of financial position, a statement of activity, cash flow forecast, a pledge report, a schedule of accounts payable and working papers for the annual tax return (actual return prepared by organization’s CPA firm) and many others.
Audit
• TFEC will work closely with your organization’s auditor to provide all information necessary to complete the annual audit.
Budget Preparation
• TFEC will work closely with staff to assemble the organization’s annual budget.
Payroll
• TFEC will prepare payroll journal entries, governmental reports, and employee deductions for taxes, benefits, and savings plans (client is responsible for having own payroll provider).
Investments
• TFEC will establish relationships with financial institutions where funds are invested.
• Ensure that all funds are invested properly, according to investment policy guidelines.
• Ensure that all fees charged by investment firms are appropriate.
• Rebalance investment portfolio on a monthly basis.
• Provide monthly investment reports.
• Review all investments quarterly using the expertise of TFEC’s Investment Advisory Committee.
For an additional fee, TFEC will provide Planned Giving Services.
In addition, TFEC is a great partner to help you achieve your goal of investing in deserving students through a scholarship program. The costs involved in administering a scholarship program such as staff time and resources, receiving and processing scholarship applications, preparing scholarship materials for decision meetings and disbursement of scholarship funds can strain your organization. Partnering with TFEC for your scholarship program through a Management Service Agreement alleviates the administrative burden on your organization and allows you to focus on your daily tasks and activities.
Add this all up and you will be amazed at the many ways that TFEC can be of service to your organization. In addition, TFEC staff will always be here to assist you in fulfilling your goal of stable financial management.
Click here to learn more about Management Services.
