Get answers to popular questions about how endowments, foundations, religious organizations, and nonprofits should be managing their investments.
A board member of a nonprofit serves an important role in the oversight and responsibility of the organization. This guide includes 4 key areas board members should focus on regarding the oversight of an organization’s investment program.
Creating an investment committee of qualified individuals helps ensure the board fulfills its fiduciary responsibilities. This guide answers 4 key questions regarding establishing an investment committee including suggested member roles and types.
One of the responsibilities of a nonprofit board is to manage the organization’s assets prudently. Unless you have someone on staff with significant investment expertise, partnering with an investment advisor is a prudent decision.
While your board has a fiduciary responsibility for your nonprofit’s assets, investment oversight authority is often delegated to a finance or investment committee. This checklist will guide your committee through six topics that should be reviewed regularly: Committee Charter, Spending Policy, Investment Policy Statement, Investment Fees, Conflict of Interest, and Access to Records.
The Committee Charter is a key element of a successful oversight group and outlines the authority, roles, and responsibilities of the committee. Committee Charters help ensure you’re meeting your fiduciary duties.
An Investment Spending Policy helps ensure your nonprofit organization is on the same page when it comes to your endowment spending. It covers topics including who has discretion over distributions, what the spending rate of the endowment should be, and what is considered a qualified expenditure.
A well-written Conflict of Interest Policy provides security to your organization. It helps manage personal conflicts of interest among leaders of the organization protecting your organization from a loss in reputation, donor gifts, and potential legal action.
One of the key responsibilities of the board is to ensure that the funds are managed in a responsible and prudent manner. This typically involves selecting an advisor who can guide the board and help them fulfill their fiduciary duty - ideally an advisor who will act as a co-fiduciary.
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