Understand the pros and cons of issuing a formal Request for Proposal in the search for your nonprofit’s next investment advisor.
An investment management Request for Proposal (RFP) is a formal document nonprofit organizations use to solicit proposals from investment consultants and advisors. While RFPs can be an effective way to make informed decisions, there are also some additional complexities to consider. Here are some pros and cons of using an RFP:
In summary, RFPs can be an effective tool when used appropriately. They promote competition, clarity, and accountability, but they also come with the drawbacks of being resource-intensive and potentially inflexible. Organizations should carefully consider their specific needs and available resources for the project when deciding whether to use an RFP or explore alternative procurement methods.
Issuing an RFP may not be the right solution for some organizations. If the cons outweigh the pros of doing an RFP, download our resource, “The Alternative to an RFP: A Simplified Approach to Selecting Your Investment Advisor” to consider an alternative approach to finding the right investment partner.
eCIO has been selected by nonprofits nationwide to manage their investment programs. Our engagement with these organizations has occurred through both formal RFP processes and direct hiring without RFPs. Click here to schedule a 15-minute complimentary consultation with one of our investment advisor experts to learn more or to have us participate in your RFP.
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