FundSvcs Community

I still do not think that is your job. That belongs solely with Finance who should report on those expenditures to you for stewardship of your donors. Certainly, if you do not like something you see in those reports you should question. But "oversight" is not your job (IMHO). John John H. Taylor Principal, John H. Taylor Consulting 2604 Sevier St. Durham, NC 27705 johntaylorconsulting@gmail.com 919.816.5903 (cell/text) Serving the Advancement Community Since 1987 On Thu, Aug 15, 2019 at 12:43 PM Gross, Debra <GrossD@email.chop.edu> wrote: > Thanks – I should have said the oversight would be shared with finance, > perhaps on a yearly basis, as part of stewarding the donors. > > > > *From:* Advancement Services Discussion List < > FUNDSVCS@LISTSERV.FUNDSVCS.ORG> *On Behalf Of *John Taylor > *Sent:* Thursday, August 15, 2019 1:29 PM > *To:* FUNDSVCS@LISTSERV.FUNDSVCS.ORG > *Subject:* [External] Re: [FUNDSVCS] Fund spending oversight question > > > > The concern I have with this notion is that such oversight should not be > required. Our job is to raise and deposit the funds into accounts that > have specific spending guidelines and parameters. From that point, the use > of the funds is subject to accounting regulations (FASB) and oversight by > the Business Office. Failure to use those funds as specified in the fund > establishment paperwork can be regarded as misappropriation. > > > > In other words, doing what you are being asked to do should be the > responsibility of the Business Office following the official institutional > policy. Your financial auditors are required to follow these protocols. > This is their job, not yours (or at least it shouldn't be yours). > > > > John > > > > John H. Taylor > > Principal, John H. Taylor Consulting > > 2604 Sevier St. > > Durham, NC 27705 > > johntaylorconsulting@gmail.com > > 919.816.5903 (cell/text) > > > > Serving the Advancement Community Since 1987 > > > > > > On Thu, Aug 15, 2019 at 12:05 PM Gross, Debra <GrossD@email.chop.edu> > wrote: > > Hi all > > > > We’ve been asked to come up with a policy regarding oversight by > Development, of contribution accounts; to ensure that the hospital > stakeholders are following donor intent and spending the money in a timely > manner. > > > > Checked the download site but didn’t really see anything there. If you’re > willing to share please send me what you have. > > > > Grateful in advance, Debbie > > > > Debra Gross > CHOP Foundation > 3401 Civic Center Blvd > Philadelphia, PA 19104 > 267-426-6488 ● f 267-426-6530 ● m 267-253-0994 > grossd@email.chop.edu ● chop.edu > > > > [image: cid:image001.jpg@01D39E5F.76F250F0] > > > > > > > > > ** This email originated from an *EXTERNAL sender* to CHOP. Proceed > with caution when replying, opening attachments, or clicking links. Do not > disclose your CHOP credentials, employee information, or protected health > information to a potential hacker**. >

Maybe in a coordinating role? Ie you're ensuring Finance has the correct guidelines and rules for each of your restricted funds, etc. Exercising oversight in the sense of actively ensuring compliance through auditing, investigation, reviewing reports, etc. is something I'd think you want to steer clear of. But if your compliance role is simply to support Finance by providing them information about your work seems fine to me. I wouldn't call that oversight, but if those duties were in an oversight policy, I wouldn't be troubled, as they are your normal duties anyway. Thank you, Isaac Shalev CRM Expert Sage70, Inc. (917) 859-0151 isaac@sage70.com Schedule a *30-minute consultation *now: https://calendly.com/sage70/30min On Thu, Aug 15, 2019 at 1:46 PM John Taylor <johntaylorconsulting@gmail.com> wrote: > I still do not think that is your job. That belongs solely with Finance > who should report on those expenditures to you for stewardship of your > donors. Certainly, if you do not like something you see in those reports > you should question. But "oversight" is not your job (IMHO). > > John > > John H. Taylor > Principal, John H. Taylor Consulting > 2604 Sevier St. > Durham, NC 27705 > johntaylorconsulting@gmail.com > 919.816.5903 (cell/text) > > Serving the Advancement Community Since 1987 > > > On Thu, Aug 15, 2019 at 12:43 PM Gross, Debra <GrossD@email.chop.edu> > wrote: > >> Thanks – I should have said the oversight would be shared with finance, >> perhaps on a yearly basis, as part of stewarding the donors. >> >> >> >> *From:* Advancement Services Discussion List < >> FUNDSVCS@LISTSERV.FUNDSVCS.ORG> *On Behalf Of *John Taylor >> *Sent:* Thursday, August 15, 2019 1:29 PM >> *To:* FUNDSVCS@LISTSERV.FUNDSVCS.ORG >> *Subject:* [External] Re: [FUNDSVCS] Fund spending oversight question >> >> >> >> The concern I have with this notion is that such oversight should not be >> required. Our job is to raise and deposit the funds into accounts that >> have specific spending guidelines and parameters. From that point, the use >> of the funds is subject to accounting regulations (FASB) and oversight by >> the Business Office. Failure to use those funds as specified in the fund >> establishment paperwork can be regarded as misappropriation. >> >> >> >> In other words, doing what you are being asked to do should be the >> responsibility of the Business Office following the official institutional >> policy. Your financial auditors are required to follow these protocols. >> This is their job, not yours (or at least it shouldn't be yours). >> >> >> >> John >> >> >> >> John H. Taylor >> >> Principal, John H. Taylor Consulting >> >> 2604 Sevier St. >> >> Durham, NC 27705 >> >> johntaylorconsulting@gmail.com >> >> 919.816.5903 (cell/text) >> >> >> >> Serving the Advancement Community Since 1987 >> >> >> >> >> >> On Thu, Aug 15, 2019 at 12:05 PM Gross, Debra <GrossD@email.chop.edu> >> wrote: >> >> Hi all >> >> >> >> We’ve been asked to come up with a policy regarding oversight by >> Development, of contribution accounts; to ensure that the hospital >> stakeholders are following donor intent and spending the money in a timely >> manner. >> >> >> >> Checked the download site but didn’t really see anything there. If you’re >> willing to share please send me what you have. >> >> >> >> Grateful in advance, Debbie >> >> >> >> Debra Gross >> CHOP Foundation >> 3401 Civic Center Blvd >> Philadelphia, PA 19104 >> 267-426-6488 ● f 267-426-6530 ● m 267-253-0994 >> grossd@email.chop.edu ● chop.edu >> >> >> >> [image: cid:image001.jpg@01D39E5F.76F250F0] >> >> >> >> >> >> >> >> >> ** This email originated from an *EXTERNAL sender* to CHOP. Proceed >> with caution when replying, opening attachments, or clicking links. Do not >> disclose your CHOP credentials, employee information, or protected health >> information to a potential hacker**. >> >

Thanks – I should have said the oversight would be shared with finance, perhaps on a yearly basis, as part of stewarding the donors. From: Advancement Services Discussion List <FUNDSVCS@LISTSERV.FUNDSVCS.ORG> On Behalf Of John Taylor Sent: Thursday, August 15, 2019 1:29 PM To: FUNDSVCS@LISTSERV.FUNDSVCS.ORG Subject: [External] Re: [FUNDSVCS] Fund spending oversight question The concern I have with this notion is that such oversight should not be required. Our job is to raise and deposit the funds into accounts that have specific spending guidelines and parameters. From that point, the use of the funds is subject to accounting regulations (FASB) and oversight by the Business Office. Failure to use those funds as specified in the fund establishment paperwork can be regarded as misappropriation. In other words, doing what you are being asked to do should be the responsibility of the Business Office following the official institutional policy. Your financial auditors are required to follow these protocols. This is their job, not yours (or at least it shouldn't be yours). John John H. Taylor Principal, John H. Taylor Consulting 2604 Sevier St. Durham, NC 27705 johntaylorconsulting@gmail.com<mailto:johntaylorconsulting@gmail.com> 919.816.5903 (cell/text) Serving the Advancement Community Since 1987 On Thu, Aug 15, 2019 at 12:05 PM Gross, Debra <GrossD@email.chop.edu<mailto:GrossD@email.chop.edu>> wrote: Hi all We’ve been asked to come up with a policy regarding oversight by Development, of contribution accounts; to ensure that the hospital stakeholders are following donor intent and spending the money in a timely manner. Checked the download site but didn’t really see anything there. If you’re willing to share please send me what you have. Grateful in advance, Debbie Debra Gross CHOP Foundation 3401 Civic Center Blvd Philadelphia, PA 19104 267-426-6488 ● f 267-426-6530 ● m 267-253-0994 grossd@email.chop.edu<mailto:grossd@email.chop.edu> ● chop.edu<http://chop.edu> [cid:image001.jpg@01D39E5F.76F250F0] ** This email originated from an EXTERNAL sender to CHOP. Proceed with caution when replying, opening attachments, or clicking links. Do not disclose your CHOP credentials, employee information, or protected health information to a potential hacker**.

It all depends on your org structure and your relationship with you financial offices ; my role includes the responsibilities you mentioned,I’m out of the office today and will send you some information next next week when I return. Joan > On Aug 15, 2019, at 1:51 PM, Isaac Shalev <isaac@sage70.com> wrote: > > Maybe in a coordinating role? Ie you're ensuring Finance has the correct guidelines and rules for each of your restricted funds, etc. Exercising oversight in the sense of actively ensuring compliance through auditing, investigation, reviewing reports, etc. is something I'd think you want to steer clear of. But if your compliance role is simply to support Finance by providing them information about your work seems fine to me. I wouldn't call that oversight, but if those duties were in an oversight policy, I wouldn't be troubled, as they are your normal duties anyway. > > > Thank you, > Isaac Shalev > CRM Expert > Sage70, Inc. > (917) 859-0151 > isaac@sage70.com > > Schedule a 30-minute consultation now: > https://calendly.com/sage70/30min > > >> On Thu, Aug 15, 2019 at 1:46 PM John Taylor <johntaylorconsulting@gmail.com> wrote: >> I still do not think that is your job. That belongs solely with Finance who should report on those expenditures to you for stewardship of your donors. Certainly, if you do not like something you see in those reports you should question. But "oversight" is not your job (IMHO). >> >> John >> >> John H. Taylor >> Principal, John H. Taylor Consulting >> 2604 Sevier St. >> Durham, NC 27705 >> johntaylorconsulting@gmail.com >> 919.816.5903 (cell/text) >> >> Serving the Advancement Community Since 1987 >> >> >>> On Thu, Aug 15, 2019 at 12:43 PM Gross, Debra <GrossD@email.chop.edu> wrote: >>> Thanks – I should have said the oversight would be shared with finance, perhaps on a yearly basis, as part of stewarding the donors. >>> >>> >>> >>> From: Advancement Services Discussion List <FUNDSVCS@LISTSERV.FUNDSVCS.ORG> On Behalf Of John Taylor >>> Sent: Thursday, August 15, 2019 1:29 PM >>> To: FUNDSVCS@LISTSERV.FUNDSVCS.ORG >>> Subject: [External] Re: [FUNDSVCS] Fund spending oversight question >>> >>> >>> >>> The concern I have with this notion is that such oversight should not be required. Our job is to raise and deposit the funds into accounts that have specific spending guidelines and parameters. From that point, the use of the funds is subject to accounting regulations (FASB) and oversight by the Business Office. Failure to use those funds as specified in the fund establishment paperwork can be regarded as misappropriation. >>> >>> >>> >>> In other words, doing what you are being asked to do should be the responsibility of the Business Office following the official institutional policy. Your financial auditors are required to follow these protocols. This is their job, not yours (or at least it shouldn't be yours). >>> >>> >>> >>> John >>> >>> >>> >>> John H. Taylor >>> >>> Principal, John H. Taylor Consulting >>> >>> 2604 Sevier St. >>> >>> Durham, NC 27705 >>> >>> johntaylorconsulting@gmail.com >>> >>> 919.816.5903 (cell/text) >>> >>> >>> >>> Serving the Advancement Community Since 1987 >>> >>> >>> >>> >>> >>> On Thu, Aug 15, 2019 at 12:05 PM Gross, Debra <GrossD@email.chop.edu> wrote: >>> >>> Hi all >>> >>> >>> >>> We’ve been asked to come up with a policy regarding oversight by Development, of contribution accounts; to ensure that the hospital stakeholders are following donor intent and spending the money in a timely manner. >>> >>> >>> >>> Checked the download site but didn’t really see anything there. If you’re willing to share please send me what you have. >>> >>> >>> >>> Grateful in advance, Debbie >>> >>> >>> >>> Debra Gross >>> CHOP Foundation >>> 3401 Civic Center Blvd >>> Philadelphia, PA 19104 >>> 267-426-6488 ● f 267-426-6530 ● m 267-253-0994 >>> grossd@email.chop.edu ● chop.edu >>> >>> >>> >>> >>> >>> >>> >>> >>> >>> >>> >>> >>> ** This email originated from an EXTERNAL sender to CHOP. Proceed with caution when replying, opening attachments, or clicking links. Do not disclose your CHOP credentials, employee information, or protected health information to a potential hacker**.

I would venture to say this is a deep and widespread problem among US charities that is being grossly overlooked. You can find many articles out there about fine-tuning your endowment spending rule, or how charities should be boosting their spending rule to put more money into their missions, but almost nothing from the non-profit Finance circles on running a strong gift and fund compliance program that fulfills the obligations of the organization and the expectations of its donors (please send me articles if they exist). Are the Finance Dept's really taking ownership on this? Do internal and external auditors pay enough attention to underutilized or unused gift/endowed fund income? If the auditors aren't spending a lot of time on it, can we expect our Finance departments to?

Tom, I do not think you are entirely accurate in your “deep and widespread” statement. I find very strong oversight and fund management protocol in place most everywhere I travel. Where it is lacking usually can be attributed to staffing issues both in finance and development. I am sure there are some bad actors out there. But my observations suggest that the weakest link lies in unspent scholarship funds resulting from too restrictive selection criteria. And that can be fixed! John John Taylor 919.816.5903 johntaylorconsulting@gmail.com Big ideas; small keyboard > On Aug 19, 2019, at 11:31 AM, Tom Yates <tyates@temple.edu> wrote: > > I would venture to say this is a deep and widespread problem among US charities that is being grossly overlooked. You can find many articles out there about fine-tuning your endowment spending rule, or how charities should be boosting their spending rule to put more money into their missions, but almost nothing from the non-profit Finance circles on running a strong gift and fund compliance program that fulfills the obligations of the organization and the expectations of its donors (please send me articles if they exist). Are the Finance Dept's really taking ownership on this? Do internal and external auditors pay enough attention to underutilized or unused gift/endowed fund income? If the auditors aren't spending a lot of time on it, can we expect our Finance departments to?

Maybe I am guilty of overstatement. It happens from time to time. : ) I still think it's a topic that lacks adequate resource and reference info for Development people.

I NEVER make overstatements 😜. Guilty as charged. But I do think nonprofits try to cover this area. Often with too many controls which slow down getting funds where they need to go. I address this over-control in the following paper. But more to the point, implementation of the suggested accountability report may address the problems you have seen: https://www.johnhtaylorconsulting.com/wp-content/uploads/2019/02/How-to-Avoid-Unnecessary-Fund-Creation-2018.pdf John Taylor 919.816.5903 johntaylorconsulting@gmail.com Big ideas; small keyboard > On Aug 19, 2019, at 1:10 PM, Tom Yates <tyates@temple.edu> wrote: > > Maybe I am guilty of overstatement. It happens from time to time. : ) I still think it's a topic that lacks adequate resource and reference info for Development people.