Northern Trust has launched automated endowment accounting, a Web-based solution that allows not-for-profit clients to allocate investment performance, track donations and manage distributions across multiple accounts in a pooled endowment fund.
The addition of automated endowment accounting completes a full suite of accounting, custody and related services including performance and risk reporting, foreign exchange, global securities lending and planned giving services available to not-for-profit organisations.
Through an agreement with Fundriver Inc., a provider of endowment accounting software, Northern Trust has deployed FUNDRIVER Online PRO to automate endowment administration through unitisation, simplified reporting and information sharing among multiple subaccounts. FUNDRIVER is delivered through Northern Trust Passport, a client information system that integrates Northern Trust and third-party financial information through a single Web portal.
“Northern Trusts endowment accounting service provides an alternative to institutions that have relied on spreadsheets or legacy systems to manage the complex accounting requirements of endowment funds. As endowments experience growth in assets under management, more institutions are turning to automated solutions to meet increasing demands for transparency and accountability,” says Beth Douglass, senior vice president and division manager of the Not-for-Profit segment of Northern Trust Corporate & Institutional Services.
Utilising the FUNDRIVER system, Northern Trusts automated endowment accounting establishes a regular, repeatable process for allocating investment performance across individual endowment fund accounts, tracking donor restrictions on original value or income, and managing spending rules that drive the distribution of income.
“At Northern Trust, we have more than 100 years of experience in providing services to not-for-profit institutions. Automated endowment accounting is an example of Northern Trusts ability to combine our expertise and leading edge technology to create solutions that allow our not-for-profit clients to focus on meeting their goals,” adds Douglass.