Unitization Methods Explained
GiftWrap allows you to value units held in a pooled income fund in one of several ways. GiftWrap then uses the net asset value per unit to determine the units to assign to new gifts.
The method you choose for a fund under Setup - Pooled Income Fund will dictate the method used by the Unitize New Gifts function whenever you run it.
Method 1: Average Unit Value on Preceding and Succeeding Valuations
Unitization method 1 determines a pooled income fund's net asset value per unit by averaging the fund values on the valuation dates that most immediately precede and succeed the date of gift and dividing by the number of units in the fund on the valuation date that immediately precedes the gift.
Example (inputs in bold):
|
Fund Value at Prior Determination Date |
$100,000.00 |
|
Number of Units at Prior Determination Date |
1,000.0000 |
|
Fund Value at Succeeding Determination Date |
$110,000.00 |
|
Net Asset Value Per Unit |
105.00 |
|
Amount of the Gift |
4,000.00 |
|
Number of Units for the Gift |
38.0952 |
Method 2: Valuation on Determination Date
Unitization method 2 determines a pooled income fund's net asset value per unit by dividing the fund value entered by the number of units entered. Method 2 is intended for organizations that either value their pooled funds each day a gift is made and assign units according to the fund value and existing units of participation on the date of the gift or only book gifts on scheduled valuation dates.
Example (inputs in bold):
|
Total Value of the Fund |
$100,000.00 |
|
Total Number of Units in Fund |
1,000.0000 |
|
Net Asset Value Per Unit |
100.00 |
|
Amount of the Gift |
4,000.00 |
|
Number of Units for the Gift |
40.0000 |
|
Total Value of the Fund |
$100,000.00 |
|
Total Number of Units in Fund |
1,000.0000 |
|
Net Asset Value Per Unit |
100.00 |
|
Amount of the Gift |
4,000.00 |
|
Number of Units for the Gift |
40.0000 |
Method 3: Specify Net Asset Value per Unit
Unitization method 3 allows the user to enter a pooled income fund's net asset value per unit directly. Method 3 is intended for organizations that use a method for determining net asset value per unit that is not covered by Methods 1 or 2. The user determines the fund's net asset value per unit using the approach that is appropriate for the fund, then enters the resulting net asset value per unit into GiftWrap.
Example (inputs in bold):
|
Net Asset Value Per Unit |
100.00 |
|
Amount of the Gift |
4,000.00 |
|
Number of Units for the Gift |
40.0000 |
Method 4: Interpolated Average
Unitization method 4 determines a pooled income fund's net asset value per unit for a specific gift by averaging the fund values on the valuation dates that most immediately precede and succeed the date of gift, dividing by the number of units in the fund on the valuation date that immediately precedes the gift, and then computing a straight-line interpolation of the fund's net asset value per unit on the date the gift was made.
Example (inputs in bold):
|
Prior Determination Date for Fund Value |
4/1/2003 |
|
Succeeding Determination Date for Fund Value |
6/30/2003 |
|
Date of Gift |
5/1/2003 |
|
Fund Value at Prior Determination Date |
$100,000.00 |
|
Number of Units at Prior Determination Date |
1,000.0000 |
|
Fund Value at Succeeding Determination Date |
$110,000.00 |
|
Change in Value/Unit During Period |
$10.00 |
|
Days in Period |
92 |
|
Days Gift Existed During Period |
61 |
|
Net Asset Value Per Unit on Date of Gift |
$106.6304 |
|
Amount of the Gift |
4,000.00 |
|
Number of Units for the Gift |
37.5128 |