Overcoming the challenges of running foundations through asset servicing

Running foundations in today’s climate can be a great challenge. On top of bringing to light its advocacies in what may sometimes appear to be a cynical world, foundations have to cope with tedious daily operational demands. Moreover, it must face the realities of engaging in cause-oriented work: The need to raise funds.

These challenges are often compounded by the limitations on the resources of these organizations. As a matter of principle, as well as a matter of commitment to their donors and supporters, foundations should put their cause above their other concerns. This means that they can only devote so much funds towards the functions happening behind the scenes: Human resource recruitment and development, procurement of the necessary equipment, rentals of facilities, deployment of marketing strategies, financial accounting, donor reporting, fund raising, among many others.

But the completion of all these tasks is just as critical to a foundation’s success. After all, the organization would be unable to carry through its advocacy work without funds, without people, without tools and technologies, without the support of partners, donors, the general public, and even the government.

This is where help from asset servicing firms comes into play. These firms provide middle and back office solutions that make accounting, documentation of activities and transactions, data management, tax reporting, and fund management so much easier to manage. They have the latest tools, as well as a pool of professionals who specialize in these domains, so that foundations need not invest so much resources into learning the skills,acquiring tools and manpower, and tedious paperwork.

Asset servicing firms provide various forms of assistance to foundations as they keep up with all these demands. They can take care of bookkeeping and accounting, financial report preparation, researching on possible sources of funding especially by monitoring grants, and determining avenues for growing the assets that may be invested. Because they handle this role for many other organizations, they can absorb the costs of middle and back office work, while their clients can drastically reduce the budget for staffing, and the use and maintenance of office space and equipment.

Furthermore, the foundation’s management need not be tied up to their desks crunching the numbers. Instead, they can devote their full attention to relating with potential institutional partners donors, or crafting strategies for organizational growth, and perhaps most importantly, engaging with their beneficiaries – the very reason for the foundation’s existence.