What is Due To/Due From?

We're glad you asked! In an endowment sense, a Due To/Due From (DTDF) is defined as the cash that needs to be transferred between an organization’s operating account and its endowment investment pool. These funds/managers are set up with a unique net asset classification and do not participate in the investment earnings allocation process. 

There are often timing differences between activity recorded at the fund level (e.g. gifts or distributions) and activity at the pool level (deposits or withdrawals from investment accounts).  We recommend customers use DTDF to track these timing differences and provide transparency for the organization’s endowment cash flow.

The process for tracking DTDF within Fundriver Balance depends upon how a customer posts and reconciles their investment activity.

• Customers who do not have the Investment Portfolio Module will use a Due To/Due From fund and will post Due To/Due From Transfer transactions.  The DTDF fund is set up with a unique net asset classification; it does not have units and does not receive any investment earnings allocations.  *Coming soon* are instructions on how to set up a DTDF fund.

• Customers who have the Investment Portfolio Module will use a Due To/Due From manager and record either a positive or negative “other net cash flow” amount to represent cash not yet transferred between the operating account and the investment pool.  *Coming soon* are instructions on how to set up a DTDF manager.

Examples of how and when to use Due To/Due From

1. A donor makes a gift, but the money is not transferred to the investment pool in the same period.  The customer would record the gift in Fundriver Balance as of the date/period that the donor made the gift.  The customer would then post either a Due To/Due From Transfer transaction or record a positive other net cash flow amount to indicate that money is owed to the investment pool from operations. 

2. A customer creates distributions for the quarter but does not withdraw cash from the investment pool in the same period.  Since the posted distribution transactions have reduced the endowment funds’ market values in the current period, the customer would post either a Due To/Due From Transfer transaction or record a negative other net cash flow amount to indicate that money is due to operations from the investment pool. 

Fundamentally, DTDF is the difference between the activity posted to the endowment funds and the cash transferred in and out of your investment pool. To assist customers in tracking this, and thus calculating their Due To/Due From amounts, we have developed DTDF Reconciliation Templates. 

DTDF Reconciliation Template V4 Manager Level

DTDF Reconciliation Template V4 Fund Level

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For more information on how to manage Due To/Due From in Fundriver, see one of the below articles that correlates to your subscription level:

Using Due To/Due From (DTDF) with the Investment Portfolio Module

Using Due To/Due From (DTDF) without the Investment Portfolio Module