Dwolla: Funds tracking

[michaelblinn]

We track the movement of funds across the giv2giv platform using relationships in neo4j

Included:

• Record funds transfer
• Report balances by each entity type (donor, charity, endowment, fund)

This issue requires tight coupling with Dwolla payment processing.

[michaelblinn]

funds_tracking.rb created with first framework for tracking the movement of funds

[michaelblinn]

Still to do: Begin fleshing out reporting requirements and write the cypher query functions Hook this code into Dwolla webhooks when funds are processed Testing testing - ensure incoming has variable 'data' translates correctly to neo4j node/relationship properties

[michaelblinn]

Endowment share price, shares outstanding nodes & indexes created. These are made endowment-by-endowment, so we'll have a lot of indexes

[michaelblinn]

These are written but untested:

In Donor class:

• donor donates to endowment

In Endowment class:

• endowment buys fund
• endowment sells fund
• endowment grants to charity
• endowment pays investment fee (e.g. $4.95 share purchase fee)
• endowment pays transaction fee (e.g. $0.25 to Dwolla)
• endowment pays sponsor fee (e.g. 4% of grant to charity)

[michaelblinn]

Diagram of funds movement Processor, investment and sponsor fees not shown

[michaelblinn]

The general idea is that endowments (and funds) will have shares and share prices. A donor making a donation into an endowment will be given shares of the endowment, which will track value. The endowment in turn buys shares of a fund (upon transfer to investment platform) to track endowment value. These share prices are computed representations of value generated by giv2giv and updated nightly via cron.

The basic fund value function is: (Assets - Liabilities) / Shares_Outstanding (where shares_outstanding are (shares purchased - shares sold))

fund_share_price = (cash_in_fund + investment_holdings) / fund_shares_outstanding

endowment_share_price = (cash_in_endowment + (fund_share_price * fund_shares_held)) / endowment_shares_outstanding

[michaelblinn]

This work is coming along. I have created models/donation.rb and models/grant.rb

The plan is:

donation.rb deals with the scheduling and completion of incoming donations (donor->endowment via dwolla->giv2giv). It's fairly complete.

There should be a nightly batch that goes through all the completed donations, sorts out how many endowment shares were purchased by each donation, and credits the donor. This is also fairly complete. However, there isn't a quick-and-easy way to find out how many shares of each endowment a donor holds advisory privileges. My thought is to have a relationship from donor->endowment with a shares_advised property that is updated upon a successful donation or grant.

I'm not worrying so much about the right-hand side of the graph that deals with investment funds (models/funds_unused.rb). Once the money is in the endowment we can push it over to eTrade for funds purchasing; the endowment share_price should encompass the underlying funds price. This is functional for only one fund, but will need expansion when we introduce other funds. The only caveat is that the endowment share price will be computing using (endowment_donations_in_dwolla + fund_value)/shares_outstanding

Next task is relationship indexes to easily look up a donor-[DONOR_ADVISED]->endowment relationship to set shares_advised. Neography shows how to do this with phase 1 but not phase 2 which we're trying to stick to.

[michaelblinn]

Just saw this: https://github.com/maxdemarzi/neography/issues/95 "Is there a way to check if there is a relationship between two nodes in Phase 2?"