The steps outlined below are for clients with standard database setup. If you have a customized database please contact email@example.com for assistance deactivating a fund.
To deactivate a fund, follow the steps below, and Fundriver will generate the entries to close out the fund's market value, historical gift, and units. Note: If you have pending transactions within the period that you are closing a fund, then Fundriver will not allow you to deactivate the fund. For clients that DO NOT want to deactivate a fund but need to accomplish the same as a deactivation by clearing out a fund's market value, historic gift and units, please refer to step 5.
A merge funds feature is available in Fundriver. To merge two funds in the same investment pool, see this article: How do I merge funds in Fundriver? Note: merging funds will occur as of the prior posting period. Deactivating a fund will occur in the current open period.
Note that closing an Endowed Fund will not close its linked Non-Pooled Fund. Follow these same steps to deactivate a Non-Pooled fund.
1. Go to ORGANIZE > FUNDS, select the fund you'd like to deactivate.
3. Click Continue to proceed with fund deactivation.
Below the CONTINUE button you will see the current historical gift and market values for the fund. These are the values for which transactions will be created to zero out the fund.
4. To view the transactions that were created, click on the TRANSACTION HISTORY tab.
Once a fund is deactivated Fundriver will automatically create transactions to sell units to zero out the market value and historical gift of the fund for the fund’s prior period values. The transactions created by Fundriver will include a note of "Closing Endowment." Deactivating a fund will create cash flow in the investment pool reconciliation.
Profile information for the deactivated fund will still be stored in your database for historical purposes.
If you are deactivating a Non Pooled Fund, Fundriver will automatically generate the necessary transactions to close the fund and these transactions will have no impact on your Endowed Pool reconciliation. The Non-Pooled Fund will close once your Investment Activity is entered, and your current posting period is closed.
5. To transfer the historic gift and market value to another fund: go to ACTIVITY > TRANSACTION ENTRY.
Choose the TRANSACTION TYPE of External Transfer In. This will transfer in the market value/appreciation from the closed fund. Choose the ENDOWMENT that will be receiving the dollars and enter the INTERNAL TRANSFER amount from the TRANSACTION HISTORY screen above (record with opposite sign). Save the transaction.
Next, transfer the historical gift using the Cash Historical Gift Transfer TRANSACTION TYPE. Plug in amount that was generated when the first fund was closed (CASH HISTORICAL GIFT TRANSFER on the TRANSACTION HISTORY screen above) but record it as a positive number. Save the transaction.
If your organization tracks BOOK VALUE, you will also want to record a BOOK VALUE TRANSFER IN transaction (which will mirror the BOOK VALUE TRANSFER OUT transaction that was generated when the first fund closed).
Prior to closing the period, you can view the transactions that are generated by Fundriver (referred to as system generated) and the manual entries you booked. To do so, go to ACTIVITY > EDIT TRANSACTIONS. From here, you can filter on your current open period and view both the system generated transactions and your manual transactions. The entries that effect Market Value should all net to zero.
6. If the distribution from the closed fund needs to move to another fund, you will need to set up a distribution rule on the closed fund to DISTRIBUTE ALL (as shown below--keep AMOUNT as 0.00). The INTERNAL DESTINATION should have the name of the fund into which the closing fund's distribution will move to.
If your organization utilizes a GL Export for distributions, the Destination ID, Fund, Program, and Project should mimic what is set up on the internal destination fund.
NOTE: It may be helpful to take a screen shot of the destination fund for your reference during this process.
In cases where the Destination, Fund, Project, etc. are already the same (due to how the DISTRIBUTION RULE was previously set up), then only the INTERNAL DESTINATION needs to be modified.
Once the transfers have been made and the period posted, run a MARKET VALUES AND HISTORICAL GIFT report to make sure the fund values are reflected accordingly.