We're glad you asked! In order to reconcile and post periods, or because of limitations on how often cash can be transferred, many of our clients set up a Due To/Due From fund or manager to provide better tracking and transparency for their investment activity. In an endowment sense, a Due To/Due From is defined as the cash that needs to be transferred between an organization’s operating account and its endowment investment pool. These funds/managers are set up with a unique net asset classification and do not participate in the investment earnings allocation process. This can be a great tool to use within the Fundriver system to help keep things organized and easy to reconcile!
Below are two common examples of how and when to use Due To/Due From.
1. A common example of a due to/due from transaction is when a gift is recorded but money is not transferred to the investment pool in the same period. You would record the gift in Fundriver the date the donor gave. A due to/due from is then recorded to show that money is owed to the investment pool from operations.
2. Distributions may be recorded to each endowment, but the funds are not pulled out of the investment pool the same period it's recorded. We would record the distribution in Fundriver, reducing each fund's value and then record a due to/due from to show that money is due to operations from the pool.
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For more information on how to manager Due To/Due From in Fundriver, see one of the below articles that correlates to your subscription package!
Using Due To/Due From (DTDF) without the Investment Portfolio Module