FAS 136

The Oklahoma City Community Foundation adheres to the Statement of Financial Accounting Standards (SFAS) No. 136 Transfers of Assets to a Not-for-Profit Organization or Charitable Trust that Raises or Holds Contributions for Others (FAS136). Under FAS136, if your organization makes a direct gift to its endowment fund then that gift is considered a reciprocal transfer because your organization is the beneficiary of the endowment. As a result, under FAS136 we are required to keep track of these types of gifts.

Since 1999, we have reported to you the FAS136 information related to your fund(s) each year following the close of our fiscal year. To more clearly comply with FAS136 and to make the information more accessible for you and your organization’s auditors throughout the year, we have recently split all charitable organization endowments that have received direct contributions from the benefiting organization into two separate funds:

one fund accounts for gifts received directly from the charitable organization for the benefit of the organization along with the accumulated earnings (net of fees and distributions) attributable to these gifts. This fund will have the words FAS136 in the fund name.
the second fund includes gifts received from donors other than the benefiting organization (referred to as third-party donors) and the accumulated earnings (net of fees and distributions) attributable to these gifts.

If DonorCentral shows that your organization now has a fund that states “FAS136 Fund” in the fund name, this is the fund that will now account for the gifts and activity associated with the dollars received directly from your organization for your organization’s benefit.

By adding the balance from both the third-party donor fund and the FAS136 fund, you will arrive at the same balance as was shown previously in the one organizational fund. Please contact either Diane Baker or Cathy Lippard at 405/235-5603 with any questions or discrepancies, as compared to your organization’s information, relating to your OCCF charitable organization fund(s).

Changes to Gift History Detail
You may notice negative gift amounts in one or more third-party donor funds. This is a result of having moved the gifts from the unrelated third-party donors fund to the new FAS136 fund. All negative gift amounts in the third-party donor fund will be offset by a related positive gift amount in the FAS 136 fund.

More about FAS136
Under FAS136, the portions of the funds contributed by your organization are considered reciprocal transfers because your organization is also the beneficiary of the distribution from the funds. The Oklahoma City Community Foundation still legally owns these funds and retains variance power. And, although the assets contributed by your organization are still reported as assets of the Oklahoma City Community Foundation we are required to report an offsetting liability representing the present value of future distributions to be made to your organization. The present value approximates the fair market value attributable to those contributions at the date shown in the fund that has “FAS136 Fund” in the fund name. The portion of the fund contributed by unrelated third-party donors (the fund listed WITHOUT “FAS136 Fund” in the fund name) is included in the net assets of the Oklahoma City Community Foundation.

We recommend you consult your auditors for guidance on compliance with FAS136.