Compute PIF Market Value Calculations Explained
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Compute PIF Market Value Calculations Explained

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The Compute PIF Market Values function lets you update the Market Value and Market Value Date stored for each gift to a pooled income fund.

The calculation of a gift's market value is performed as follows:

  1. Determine the number of units held by the gift as of the date entered in the Valuation Date field of the Compute PIF Market Values window. The units purchased by gift additions made after this date are not included in this total.

  2. Multiply the number of units held by the gift on the Valuation Date by the dollar value of one unit. If you enter a value in the Dollar Value of One Unit field of the Compute PIF Market Values window, this value is used as the dollar value of one unit. If you enter a value in the Fund Market Value on Valuation Date of the Compute PIF Market Values window, the function computes the dollar value of one unit for you as described below.

Example calculation
A gift to the pooled income fund was funded on 12/1/1994 and purchased 1,000.0000 units. An addition on 12/10/1999 purchased 250.0000 units and an addition on 11/15/2004 purchased 100.0000 units. The valuation date for determining the new market value is 9/30/2004. The dollar value of one unit is $99.5000.

Units held on valuation date of 9/30/2004:  1,000.0000

  + 250.0000

  1,250.0000

Dollar value of one unit:                                      x 99.5000

Market value of gift on 9/30/2004:           $124,375.0000

 

Calculation of dollar value of one unit using Fund Market Value on Valuation Date
Compute PIF Market Values divides the Fund Market Value on Valuation Date by the total units held by all gifts to the fund as of the valuation date. The result equals the dollar value of one unit that will be used to compute the new market values for all gifts to the fund (see calculation description above).

It is simplest to determine fund market value at the end of a payment period after the assets and units associated with all terminated gifts have been removed and the assets and units associated with all new gifts have been added. Otherwise, you need to be sure that the total market value and total units assigned to gifts entered into GiftWrap reflect the exact same group of gifts to the fund.

For example, if the fair market value of the fund on 9/30/2004 is $995,345.54, enter 995,345.54.

 

 

 

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