Interview Case Study

Jim Smith has a meeting with his client Jane Doe to discuss JD Foundation, a privately held foundation of

Which Jane is the President? Jim Smith has been asked by Jane to prepare an excel model showing the

Foundations grant obligations and cash flow needs over time. Jim has asked you to prepare an excel

Model using the information below, and create a brief agenda and list of items to discuss with Jane. Jim

Has scheduled a pre-call with you next week prior to the meeting with Jane, to review any questions you

May have to help you complete the meeting materials.

Known Information:

JD Foundation has $79 million of investment assets and $3 million in cash for the period ending Q3

2022. Jane has indicated that JD Foundation should have a $3 million cash reserve at all times.

Additional contributions and/or withdrawals of the invested assets are permitted on the first calendar

Day of each month, and cash can be used to make gifts from the Foundation at any time. All grant

Commitments are paid in cash.

Jane turns 50 years old in December 2022 and plans to spend down the Foundations assets over the

Next 10 years. Jane has expressed that she would like to give $5 million more to JD Foundation, timing to

Be determined. As shown in Exhibit A, JD Foundation has already made a number of commitments. JD

Foundation has also made a contingent commitment to organization ZYX stating that any funds

Remaining in JD Foundation at the end of 10 years, after all known grants are fulfilled, will be granted in

Full to organization ZYX. If there are no funds remaining, organization ZYX will not receive a grant.

Estimated Payment Start Date	Organization Name	Grant Duration	Total Commitment
1/1/2023	ABC Charity	5-year Commitment	25,000,000
1/1/2023	DEF Charity	5-year Commitment	25,000,000
6/1/2023	GHIF Charity	5-year Commitment	20,000,000
6/1/2023	JKL Charity	5-year Commitment	10,000,000
10/1/2023	MNO Charity	5-year Commitment	1,000,000
1/1/2023	PQR Charity	5-year Commitment	7,500,000
1/5/2023	STU Charity	10-year Commitment	5,000,000

Assignment:

1. Build an excel model showing foundation grant obligations and cash flow through the specified

Time period.

a. Consider: (1) Investment and/or withdrawal from investments,(2) Duration and cadence

Of grants, and (3) Remaining dollars after all grants are satisfied.

b. The instructions above may not contain all of the information that you feel is needed to

Build the model. Please make reasonable assumptions as needed about any missing

Information, and come prepared to explain your thinking.

2. Prepare a list of questions for Jim that you need answered in order to finalize the excel model

Analysis.

3. Prepare a short agenda and a list of questions for Jim to discuss with Jane.