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Foundations & Endowments: Hospitals

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Nottingham was asked to develop, in essence, private unitized accounts for several Catholic hospital organizations (the same process has since been used for Catholic and Episcopal Dioceses, a national church organization, community foundations, utility cooperative, university system collective endowment pools, and several government investment pools including one of the largest state treasuries on the east coast).

Each legacy entity became a “shareholder” in the consolidated merged investment account. Multiple investment accounts were formed to reflect the nature of the assets (retirement plan, debt retirement/bond reserve, endowment, general operating cash fund, etc.). In many cases the entities had multiple layers of shareholder recordkeeping. For example:

  • Sisters of Mercy Hospital
    • Endowment Funds
      • Johnson Cancer Center
        • Cecilia M Edwards Memorial Fund

By tracking each investment at the account, sub-account, sub-account of sub-account levels etc., the CFO of Sisters of Mercy can review her entire investment account, the Endowment Fund as a separate report, the portion of the Endowment attributable to the Cancer Center and the individual gifts constituting the Cancer Center Endowments.

This degree of detail and accuracy can be especially helpful (and necessary) if a charitable organization accepts Charitable Remainder Trusts and is required to distribute certain percentages of income and/or corpus within time certain periods in order to maintain compliance of the individual CRT and the Endowment overall.

 

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About Nottingham

Nottingham has been serving the fund accounting, administration, organization, and management needs of clients nationwide for nearly three decades. Based in Eastern North Carolina, Nottingham delivers a full range of turnkey services, handling clients’ behind-the-scenes financial and administrative operations so they can focus on managing their portfolios.

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  • 116 South Franklin Street
    Rocky Mount, NC 27804
  • Phone: 252. 972.9922
  • Fax: 252.442.4226