Cherry Bekaert collaborated with a regional animal welfare organization (the Organization) to strengthen its financial infrastructure and bring greater clarity to fund stewardship, reporting and compliance. The Organization was expanding its programs, donor support and funding sources. However, its financial infrastructure had not evolved at the same pace, creating challenges in managing increasingly restricted gifts and an increasingly complex investment pool.
Over time, the Organization accumulated several large donor-restricted and endowed funds tied to donor gifts, memorial contributions, capital improvements, veterinary care, spay and neuter initiatives, and other mission-driven priorities. Historical records were incomplete, and legacy spreadsheets contained inconsistencies in gift amounts, restrictions and fund designations. Some funds were also linked to initiatives no longer aligned with current operations. As a result, leadership lacked clear visibility into fund balances, donor intent and appropriate fund usage.
At the same time, the Organization needed to strengthen reporting and governance practices to ensure compliance with donor restrictions while maintaining confidence among stakeholders and supporting future growth.
Resolving Data Fragmentation and Visibility Constraints
Prior to engaging Cherry Bekaert, the organization experienced several operational challenges, including:
- Fragmented historical records stored across legacy spreadsheets
- Evolving donor restrictions and unclear fund designations
- Limited visibility into fund availability and investment allocations
- Inability to consistently produce reliable reporting for leadership, the board and donors
- Complex management of restricted and endowed funds while preserving donor intent
Bringing Clarity to Fund Management and Governance
Cherry Bekaert’s CFO Advisory team helped the organization bring clarity to years of fragmented records and build a stronger foundation for fund stewardship, reporting and future growth through four steps:
1. Data Cleanup and Analysis
We began by reviewing legacy spreadsheets, gift documentation, board records and other supporting materials to reconcile fund activity and clarify donor restrictions. This process helped identify discrepancies in recorded contributions, gaps in historical support and inconsistencies in how funds had been categorized over time.
2. Allocation Modeling
Where historical investment records were incomplete, we developed an allocation model to help estimate beginning balances and roll them forward over time. This gave leadership a practical baseline for understanding fund positions, allocating earnings more consistently and supporting better decision-making.
3. Policy and Compliance Guidance
We also provided guidance to help the organization evaluate legacy fund designations, strengthen fund governance, enhance board oversight, and identify opportunities to formalize investment and spending practices. This work also helped leadership consider how donor-restricted funds tied to discontinued programs could continue to support the mission while honoring donor intent.
4. Additional Support
As the engagement progressed, the organization also turned to Cherry Bekaert for broader support, including nonprofit tax services and additional reporting guidance. Over time, the CFO Advisory team became a trusted extension of leadership, helping address strategic, operational, and compliance matters as the organization continued to grow.
Enabling Operational Excellence Forward
By the end of the engagement, the organization had a clearer understanding of its endowed and restricted funds, a more reliable basis for ongoing reporting and a stronger path forward for fund stewardship.
With clearer fund information and stronger reporting practices in place, leadership was better positioned to support future growth, strengthen governance and stay focused on advancing the organization’s mission.
Your Guide Forward
Cherry Bekaert’s Not-for-Profit industry team helps organizations strengthen financial clarity and support long-term mission success. Through services such as fund accounting advisory, financial reporting support and tax services, as presented in this specific case study, we can assist clients with improving fund visibility, enhancing reporting accuracy and addressing compliance requirements. Let us be your guide forward.
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