Administrative and Accounting Services for Private Charitable Foundations

People who have significant wealth and are interested in philanthropy often set up a private foundation as a vehicle for their charitable giving.  Depending on the size of the foundation’s endowment, the foundation may require a full office staff for program administration as well as accounting and investment administration.  However, in some situations, contracting with an outside firm for the financial administration of the foundation’s affairs can be more effective.

The principals of Lake Peak have eighteen combined years of experience in accounting and administrative services for private and community foundations.  They have administered up to $50 million in foundation assets.

Among the services Lake Peak can provide to its foundation clients in any combination are the following:

• Coordinate the establishment of a foundation office – set up administrative and accounting systems and procedures, train staff, develop filing systems, create financial reporting templates and provide ongoing supervision and consultation for the office.
• Serve as liaison to and coordinate among tax advisors, legal advisors, investment advisors, investment managers and investment custodians; also assist in the search for new advisors as needed.
• Prepare periodic financial statements that are customized for the foundation’s management needs as well as tailored to the requirements of the annual federal Form 990-PF.
• Monitor investment securities accounts, account for all transactions reported by the custodian, verify the custodian’s periodic statements and annual tax reporting; ensure that all discrepancies found in custodian reporting are resolved.
• Administer private investments such as private equity limited partnerships and hedge funds; ensure timely transfer of capital calls and monitor receipt of distributions; communicate as necessary with investment managers regarding administrative matters; consult with other advisors regarding partnership amendments and other matters;  keep records of tax cost basis; verify annual Schedules K-1 to capital account records and resolve any discrepancies.
• Provide estimates of income; coordinate estimated tax payments, filing of extensions and final tax returns; gather and organize all information required for the preparation of the foundation’s Form 990-PF; prepare the final Form 990 or coordinate with an existing tax accountant on the preparation.
• Prepare periodic projections of cash needs and consult with investment advisors regarding cash management and identifying appropriate sources of cash.
• Assist in the day to day tasks of the foundation’s financial affairs such as reconciliation of bank statements, payment of bills and payroll.