Family foundations get edge by “back-office” outsourcing
Article referenced by Reuters author Manuela Badawy
According to an article by Reuters, the rapid growth of small, private foundations, such as family charities, has led to increased outsourcing of the crucial but often-overlooked “back-office” business, benefiting financial services and other companies.
In the past decade, the number of new private foundations has doubled to nearly 80,000, with thousands of new ones forming each year. Many of these family foundations are launched by wealthy individuals who want to use their business acumen that created their wealth and get hands-on involvement in the causes they care about. For the entrepreneurs behind their family philanthropy and private foundations, the last thing many of them anticipated was how much of their time would be taken up by paperwork.
At Plumb Family CFO, we work with many of our high-net-worth clients that have family foundations and help with their accounting needs. The financial statements of family foundations are growing to be as important as the cause when it comes to fundraising and grants. There are accounting implications that family foundations need to follow, such as tracking separate portfolios for marketable securities and reporting on accounts both related and unrelated to the exempt functions of the foundation.
Nonprofits and family foundations are burdened with some of the most complex accounting and reporting needs while having budgets that can’t always justify a robust internal staff. Plumb mitigates that problem with services including:
- Outsourced Bookkeeping, Controllership and CFO Services
- Full, partial and outsourced accounting projects
- Restricted donations and endowments
- Grant compliance
- Board dashboards
- Fund accounting
- Internal controls
- Audit and tax assistance
- Research on TAX and GAAP issues
- Software consulting
To learn how Plumb Family CFO can help with your family foundation accounting needs, contact us today!