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.
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:
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.
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.
Continue to the external link?
Click the link above to continue or CANCEL