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.
Nonprofit boards have three key fiduciary responsibilities: 1) duty of care, 2) duty of loyalty, and 3) duty of mission/obedience. These are mandated by state and common law (including the Uniform Prudent Management of Institutional Funds Act - UPMIFA). Those responsible for an organization’s investment program should establish an annual checklist so that decision-makers may review key items and establish priorities. This proactive approach helps to maintain a disciplined structure to enable board members to successfully meet their fiduciary duties.
Download an easy-to-use fiduciary checklist that can be used to perform a self-assessment of your investment program in these 6 key areas:
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