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Mastering Nonprofit Finances: Essential Tips for Managing and Maintaining Operating Reserves
A Development Officer called us with a strange request. Could I please help a nonprofit Executive Director decide what to do with a six-figure donation? It’s not often nonprofit leaders don’t know what to do with a large gift. But this gift had a unique restriction. The money must be allocated to an account reserved for emergencies or unplanned incidents, whatever they may be; an unrestricted, restricted gift you Read More
How do we measure our non-profit’s fundraising resilience?
In the previous chapter, we introduced you to the overall concept of building resilience for your nonprofit. Next, we will focus on some aspects of fundraising resilience, which is key to most nonprofits since many rely on either government grants or donors to consistently deliver on programs. Some nonprofits can rely on earned income, especially those in the education or medical service provider sectors. According Read More
Building Resilience: A Guide to Strengthening Your Nonprofit for the Future
You have just learned how endowments can create a legacy and stable financial future for your nonprofit. But an endowment or board-designated fund does not guarantee a nonprofit’s perpetual financial resilience. Strategic planning, diversified funding streams, robust financial management practices and effective operations are critical for nonprofits to weather economic downturns, respond to emergencies, and invest Read More
An Introduction to Financial Resilience X-Ray: Strengthening Your Nonprofit for the Future
Congratulations! You’ve decided to pursue a journey of nonprofit resilience. Whether it’s fluctuating funding sources, unexpected expenses, staffing problems or a serious economic downturn, financial resilience ensures that an organization can continue to fulfill its mission no matter the challenges it faces. Moreover, demonstrating resilience builds trust with donors, stakeholders, and the communities served, Read More
Investing Nonprofit Funds: Essential Tips for Financial Growth
After years of planning and managing a well-crafted fundraising campaign, a nonprofit lands a game-changing, million-dollar gift. Or maybe the organization has accumulated funds over time that now has become a large cash balance many times greater than the nonprofit’s annual budget. When these nonprofits call us for assistance with their fund management, the cash often has been sitting at the nonprofit’s bank, Read More
Hiring an Advisor to Manage Your Endowment
When I first started doing nonprofit board work several years ago, I remember receiving advice along the lines of “Remember, your job as a Nonprofit Board Director is to advise. Knowing your boundaries is important for the success of the leadership team and the organization.” The challenge for many nonprofit board members, however, is knowing where those boundaries lie and when and how to get involved. Oftentimes, Read More
What is an Investment Policy Statement (IPS)?
When establishing an endowment, it is critical that the board, in its role as a fiduciary, executes an Investment Policy Statement (IPS) to establish clear objectives and management policies. In essence, the Investment Policy Statement sets out standards for the endowment that are maintained throughout the life of the endowment, keeping fiduciaries accountable for its supervision. Why does the organization need an Read More
Navigating UPMIFA: Tips for Effective Endowment Management
Let’s say a community health clinic receives a $1 million donation to establish a permanent endowment fund specifically for providing free vaccinations to underserved populations. Ideally this gift would give the organization the ability to navigate financial uncertainties with confidence, ensuring it delivers on the mission to provide vaccines through economic highs and lows. For nonprofits managed over 20 years Read More
Who Oversees the Endowment?
Once your organization has established the appropriate spending policy for your endowment, it is time to decide who will oversee it. Even if your organization hires an outside firm to manage the endowment investments, the nonprofit corporation and the board are the stewards of the endowment and must form a committee to enact those responsibilities. Larger nonprofit boards may form an Investment Committee and Read More
