A link between funds needs to be established when the spending distribution from an endowed fund should be posted as revenue to a related expendable fund. Creating this link will allow this process to happen automatically and seamlessly within your database when using the automated distribution function.
1) Make sure that both funds have been established in Fundriver.
To create new endowed and expendable funds, see our Knowledge Base article on creating a new fund here.
Once both funds are established, you can create a link that will automatically transfer the calculated spending amount from the endowed to the expendable fund.
2) Add a Distribution Account entry in your Endowed Fund.
Go To ORGANIZE > FUNDS, and search for your endowed fund. Scroll down and expand the blue DISTRIBUTION ACCOUNT bar.
3) Add a Distribution Rule (or rules, depending on how you want the distribution allocated) by clicking the green ADD DIST
The EDIT DISTRIBUTION
pop-up box will appear.
4) Populate the EDIT DISTRIBUTION
box with distribution details.
Scenario 1: All of a fund’s distribution will flow to the linked expendable fund.
This information may vary, depending on how you want the expendable portion of the distribution to be calculated. Below are two common scenarios.
By populating the EXPENDABLE FUND box in your Distribution Rule, it will allow your spending distributions, when created in Fundriver, to seamlessly flow to the expendable fund as revenue. The revenue will appear as a transaction on the expendable fund's record.
Scenario 2: 75% of the distribution amount will go to the expendable fund.
**Note that you must account for 100% of your distribution. Multiple distribution rules will need to be set up in this example**
Distribution rule #1
Distribution rule #2
The remaining 25% of the distribution is being reinvested back to the endowed fund’s market value. Note: the EXPENDABLE FUND field is left blank. The DESTINATION ID field is populated with the endowed fund's GLID, which will direct it to reinvest in itself.