Fund Investment Tool: Seamlessly Connects to Your Non-Profit Fund Accounting Software
At NPact, we know many foundations spend hundreds of hours manually performing core fund accounting calculations for spending policy, administrative fees, and loading and allocating investments from the pool to the fund level. For many non-profit organizations, these workflows become even more time-consuming when their tools aren’t truly built for non-profits or connected with modern fund accounting software.
Finance professionals in the foundation space have been underserved by the broader software ecosystem, and existing offerings are unable to fully meet their needs. As a result, foundations have had to bear the costs of manual process inefficiencies and audit risk. Disconnected systems and the need to reconcile multiple bank accounts or track allocations across spreadsheets only add to the problem.
Team NPact has many non-profit financial experts who have experienced these challenges firsthand and who intimately understand the pain of double-checking laborious manual calculations in Excel. We have also seen how gaps in donor information, donor management, and accounts payable workflows can complicate fund accounting when systems don’t communicate in real time.
After years of research and design, we have developed a solution that enables foundations to simplify and automate core calculations and reduce the ongoing time burden. We aim to revolutionize fund accounting for foundations by making these calculations transparent and configurable, and integrating our tool with leading non-profit finance systems to automate these workflows. Our solution connects automation with the reliability of cloud-based non-profit accounting software.
The Power of Fund Investment Tool (FIT)
Introducing NPact’s Fund Investment Tool (FIT). FIT enables foundations to automate complex processes around investment management, saving hundreds of hours that would otherwise have been spent on manual calculations. FIT helps organizations and foundations streamline cash flow tracking, bank reconciliations, and other core financial processes.
For years, many non-profit customers have struggled with how to connect their core fund accounting calculations in an automated and auditable way. We are incredibly proud to enable foundations to remove these manual calculations from their finance team’s to-do lists so that they can focus on more strategic ways to support their organization and mission. Reducing the risk of error and streamlining revenue pools, rebalancing strategies, fee schedules, and processing a spending policy are FITs main focus. With FIT, you’ll get a more accurate, real-time view of fund activity without relying on spreadsheets or manual data entry.
What Problems Does FIT Solve?
Income and Expense Allocation from the Investment Pool to the Fund Level
The investment management platforms that many foundations utilize are typically disconnected from their core fund accounting systems. Many foundations need to manually track the ownership stakes of each fund for a specific investment pool. Considered flexible and easy to use, FIT automates this ownership calculation and allocates income and expenses from the pool to the fund level. FIT also enables the optional use of unitization, ending balance, and average daily balance to track these calculations. FIT also helps ensure allocations flow cleanly into your non-profit accounting software for accurate financial reporting.
Admin Fees Made Easy
Foundation administrative fees can often be complex and laborious. We are aware of some large foundations that need to take weeks or months to calculate their quarterly or annual fees, with additional weeks or months taken by auditors to validate the accuracy of the calculations. FIT enables these calculations to be back-tested and automated. They are calculated in batches and sent to the accounting system with a few mouse clicks. Administrative fees can also be tiered or grouped in fee families, which helps reduce audit risk and eliminates the need to reconcile fee schedules manually across multiple bank accounts or systems.
Spending Policy
Spending policies vary widely based on fund type and foundation policy. FIT can flexibly enable spending policies to be established, reconfigured, and tracked at the fund level. FIT can perform complex calculations for rolling balances, producing journal entries that can be exported to Excel or sent to the finance system. This ensures spending activity is aligned with your broader fund accounting and donor management workflows.
See FIT in Action
Learn more about Fund Investment Tool (FIT) through a recorded webinar. During the presentation we showcase how FIT is designed to automate your investment calculations, demonstrate its reporting capabilities, and highlight how its integrations with leading financial accounting solutions are a game-changer for your fund accounting.
The recorded webinar includes:
- Introduction to NPact and the Fund Investment Tool
- Demonstration of the four calculation types within FIT
- Investment allocation
- Administrative Fees
- Spending Policy
- Rebalancing
- Review of the integrations available
- Q&A
Add FIT to Your Finance Tech Stack Today
NPact’s Fund Investment Tool is a powerful and flexible financial processing tool designed specifically to integrate with leading fund accounting solutions. FIT enables foundations and non-profits to automate complex recurring calculations for endowment fees, spending policies, income allocation, and rebalancing, eliminating the need for spreadsheets and manual compilation of information from disparate systems. It connects your existing non-profit fund accounting software by strengthening financial reporting, improving cash flow visibility, and reducing manual reconciliation work.
We are incredibly excited to offer FIT to organizations currently using Blackbaud’s Financial Edge NXT or Oracle NetSuite, with an integration with Sage Intacct coming soon. It’s time for non-profit finance professionals to get FIT! Book your FIT demo today!
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