While some organizations issue an RFP for investment services, that process can be time-consuming and complex. This guide lays out a more efficient alternative that involves interviewing a select group of advisor firms to make your decision.
Hiring an investment advisor for a nonprofit organization is a critical decision that involves specific considerations due to the organization’s unique financial goals and responsibilities.
While some organizations issue an RFP for investment services, that process can be time-consuming and complex. An efficient alternative is to schedule interviews with a select group of two or three qualified advisory firms. Opting for this method streamlines the selection process, reduces the time investment significantly, and provides a dynamic process for interactive questioning, thereby facilitating the evaluation of each firm’s compatibility as a collaborative partner. It’s a good idea to include your organization’s key stakeholders in the interviews to ensure a comprehensive perspective in the decision-making process.
Some of the key items you will want to consider when meeting with potential advisory firms include:
In summary, opting for targeted interviews with pre-selected advisory firms may offer a streamlined and effective alternative to the RFP process. Engage your key stakeholders and focus on crucial criteria including nonprofit experience, fiduciary integrity, and strategic alignment. The ideal advisor will instill confidence that they understand how to partner with your staff, committee members, and board to provide strong financial stewardship.
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