Frequently Asked Questions
How can a review of organizational policies benefit my nonprofit?
How can a review of organizational policies benefit my nonprofit?
Our experience has shown that successful organizations employ policies that work in concert with financial objectives and other organizational financial policies. During the initial process we encourage clients to draft/amend a spending policy to align appropriately with investment policies (i.e. investment policy is appropriate given spending policy or vice versa in some cases). We have found that this helps to create consistency, protect the corpus, and provide guidance to both current and future board members. At a minimum, we review policies annually to ensure relevancy, document any changes to the organization and incorporate any changes to capital market expectations.
How does WealthSouth develop the appropriate investment mix for our portfolio?
How does WealthSouth develop the appropriate investment mix for our portfolio?
Our approach is consultative, and we recognize different organizations (and changing boards) will have different concerns that will influence policy. The first step of our process is to understand the organizational intent for the assets and how the portfolio will fit into the overall planning/budget process. Items reviewed before we make policy recommendations include:
- Required rate of return (if needed)
- Drawdown sensitivity
- Organizational funding variability
- Board / Organizational investment experience and philosophy
- Risk appetite
Can WealthSouth provide administrative support for our Planned Giving program?
Can WealthSouth provide administrative support for our Planned Giving program?
We understand the importance of serving the donors of nonprofit organizations. We provide tools and resources to our nonprofit clients to enhance the level of communication between you and your donor base. We can provide gift scenarios, liability calculations, fund accounting, and tax reporting.
Is my organization required to meet the standards set forth in UPMIFA?
Is my organization required to meet the standards set forth in UPMIFA?
A strong fiduciary investment manager provides clients with a prudent, “best practices” approach to the investment engagement. While UPMIFA (Uniform Prudent Management of Institutional Funds Act) is required for restricted funds or endowments, we feel that its application makes sense for any long-term investment funds. For nonprofit boards and committees, eliminating fiduciary concerns comes down to three key areas. It must be established that an organization is carrying out Duty of Care, Duty of Loyalty, and Duty of Obedience.
What advantages are created by having WealthSouth tenured resources located in Central Kentucky?
What are the advantages of having WealthSouth’s resources located in Kentucky?
WealthSouth’s endowment and foundation team averages 18 years of experience working in the nonprofit field. We have worked with organizations across geographies and missions which has helped us gain a good understanding of the challenges facing the industry. Our experience has been that leveraging this experience to implement investment and administrative designs that help grow client portfolios and ultimately help our clients enhance their ability to execute on their missions is best delivered face-to-face with in-market resources.