Here are examples of how Fairlight works with clients.
Case 1: Strategizing for a Restricted Gift
A nonprofit received a large, seven-figure restricted gift that would allow the organization to deliver more impact than ever before. However, the organization did not have the appropriate knowledge to develop the necessary strategy, policies, and procedures to meet the donor’s intent and provide the proper level of oversight. Additionally, they wanted the services of an investment professional experienced with the specific requirements needed to manage a nonprofit endowment.
Fairlight met with the nonprofit’s leadership team to develop solid spending and investment strategies to fit the donor’s philanthropic intent. In collaboration with the board of directors, Fairlight drafted policies to ensure ongoing compliance with the endowment strategies allowing the organization to move forward effectively and confidently.
Case 2: Growing Liquid Assets Through Endowment Management
A growing nonprofit was sitting on a large cash bank balance that accumulated over years of successful fundraising. However, keeping the funds in a bank account was earning nothing in potential investment income. Nonprofit leadership’s objective was to be more proactive with its finances by ensuring that the organization:
- had appropriate cash flow in the face of an emergency and
- could fund specific long-term projects specified by the nonprofit’s board of directors.
After evaluating the organization’s financial condition, Fairlight provided the board and staff with nonprofit endowment governance principles.
The team then developed a cash management and investment strategy that reflected the organization’s funding needs to support the program and operational strategy. Once Fairlight implemented the agreed-upon investment approach, it facilitated ongoing investment reporting to ensure funds meet the philanthropic needs of the organization.
Fairlight also provides investment governance education to move the organization toward better financial oversight. Today Fairlight provides regular investment reporting and economic snapshots for effective board oversight of the endowment fund and will recalibrate the endowment if necessary to ensure optimum performance to meet objectives.
Case 3: Creating a Cost-Effective Retirement Program with Ongoing Support
A nonprofit’s head of HR was looking to replace the organization’s high-cost retirement program. The nonprofit’s relationship manager at the existing investment firm was difficult to reach when HR had critical questions and the platform that technology platform that was used to administer the plan was complex and glitchy.
Fairlight evaluated the organization’s existing plan and was able to recommend lower-cost investment options, as well as an administrator that used a more streamlined technology platform. Because many of the nonprofit’s employees were inexperienced investors, Fairlight provided one-on-one retirement education meetings to ensure full staff participation in the plan. Fairlight regularly engages with the nonprofit’s leadership to address plan adjustments.