How to move a Fund to another 501(c)3 organization and protect the fund balance from the up and down market

We need to move a Fund to another 501(c)3 organization. The Fund has current liabilities and thus will need to retain money to pay those out. This fund is active in an investment pool. What is the best way to handle this situation and protect the fund balance from the up and down market?

Additionally, we have some gifts that need to be made to this fund. Will this change how gift deposits are handled for this fund to keep new money out of the Investment Pool? 

Answer:

Move all of the money out of the investment pool and make sure to use the first day of the next cycle that will be reconciled in FACTS.  As long as the fund has a zero balance in the pool as of the first day it should not allocate earnings/losses.  Then grant out the remaining money, with the exception of the liabilities that have to be paid.  The fund will stay open until all liabilities are paid. It would be best to move the money from the pool (using journal entries) into a checking account and make sure to do the same thing in real life.

For adding gifts to the fund, you will need to debit a different asset account when recording these new gifts.  Instead of debiting the pooled asset account you will need to debit maybe a checking or money market account instead; something outside the pool.