Fund Investment Tool (FIT): Your Questions Answered
Managing fund investments across multiple accounts, endowments, or donor-advised funds can be complex and time-consuming, especially when relying on spreadsheets and manual processes. That’s where NPact’s Fund Investment Tool (FIT) comes in. Designed to streamline and automate fund accounting, FIT empowers nonprofit finance teams to work smarter, not harder.
Fund Investment Tool: Frequently Asked Questions
Below, we’ve compiled answers to some of the most frequently asked questions about FIT to help you understand how it can support your organization.
1. What Is NPact’s Fund Investment Tool (FIT)?
NPact’s Fund Investment Tool is a cloud-based solution that automates complex fund accounting processes such as income allocation, administrative fee assessment, spending policy calculations, and asset rebalancing. It integrates seamlessly with leading accounting platforms to eliminate manual spreadsheets and streamline investment management.
2. Who is FIT Designed for?
FIT is built for nonprofit organizations, foundations, and institutions that manage multiple funds, endowments, or donor-advised funds. It’s ideal for finance teams looking to reduce manual work, improve accuracy, and increase transparency in fund investment accounting.
3. What accounting systems does FIT integrate with?
FIT integrates with the following accounting systems:
4. What types of calculations can FIT automate?
FIT automates:
- Investment income allocation using Ending Balance or Average Daily Balance
- Tiered administrative fees by fund or fee family
- Spending policy distributions using rolling averages
- Fund-level asset rebalancing based on percentage or dollar targets
5. Can FIT handle complex fund structures?
Yes. FIT supports multi-account balances, balance types, and flexible configuration for organizations with hundreds or thousands of funds. It’s built to scale with your organization’s needs.
6. How does FIT improve audit readiness?
FIT maintains an audit trail of all calculations, allocations, and changes. Every batch sent to your general ledger is traceable, and reports can be exported for internal review.
7. How does FIT reduce operational risk?
By automating recurring calculations and syncing directly with your accounting system, FIT eliminates the need for error-prone spreadsheets and manual data entry, significantly reducing the risk of mistakes.
8. What reporting capabilities does FIT offer?
FIT includes a selection of standard reports to support fund management, allocations, and audit preparation. However, because FIT integrates directly with your organization’s financial general ledger, most reporting needs can be fulfilled using your existing financial system’s reporting tools. This allows for greater flexibility, consistency, and centralized access to financial data.
9. Is FIT secure?
Yes. FIT is hosted in a secure cloud environment with encryption, role-based access controls, and regular security audits to protect your financial data.
10. How long does implementation take?
Implementation typically takes 60 to 90 days, depending on your organization’s availability and the complexity of your fund structure. NPact provides dedicated onboarding support to ensure a smooth and successful rollout.
11. How can I see a demo or get started?
We’d love to show you how FIT can support your fund investment accounting needs. Schedule a demo to explore the platform and see how it can work for your organization.
Ready to Simplify Your Fund Investment Accounting?
FIT is designed to help mission-driven organizations like yours focus more on impact and less on spreadsheets. Whether you're managing a handful of funds or thousands, FIT can help you streamline operations, reduce risk, and gain better visibility into your financial data.
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