Every nonprofit organization benefits from endowments. They can provide financial stability and serve as a nest egg of capital to generate income. It’s important to remember that not all endowments are built the same. Managing and spending these funds needs a responsible and strategic approach. A well-defined endowment spending policy dictates how the funds are utilized and should align with the organization’s Read More
Basic Investment Glossary Terms to Help Optimize Your Endowment
Endowments can provide a long-term source of financial stability and growth for a nonprofit organization. Nonprofit boards and endowment committees don’t have to be experts in investing to successfully manage an endowment. There are a few key terms and concepts that every stakeholder should know to make informed decisions and maximize the potential performance of your endowment. Inflation This is a hot topic all Read More
Fairlight’s Q2 2023 Market & Economic Snapshot
The stock market gained in the second quarter of 2023 driven by the performance of a mere 10 stocks. At the same time, the bond market was a mixed picture. While headline inflation was down, core inflation is still high. What does it all mean? Read about it in Fairlight’s Market and Economic Snapshot. Talk to the financial experts at Fairlight Advisors to learn more about managing your nonprofit’s Read More
Endowments Need Effective Investment Committees
Endowments need good investment committees. What happens when governance goes awry? Whether your nonprofit is launching an endowment, changing advisors for the endowment or growing your Finance or Investment Committee, it is important to have an effective investment committee or sub-committee. As we mentioned in our previous blog, your nonprofit should start with a strong foundation of financial policies. Much Read More
Quick Guide to Forming an Endowment Investment Committee
Nonprofit organizations that have existing or possible endowments have a lot of considerations to make. When it comes to assisting an endowment’s growth, investing can be a great addition to individual donations. Forming an investment committee is one of the most important steps toward effective financial planning and long-term sustainability. Not every nonprofit will have a large selection when it comes to finding Read More
Endowments Aren’t Just For The Big Organizations
Nonprofits have the power to do amazing things for the communities they serve, but like all endeavors, they require funding. Traditional fundraising is a necessary part of continuing day-to-day functions, but you’ve likely already experienced the challenges of maintaining a steady stream of donations. Endowments are not only critically important for the sustainability and growth of nonprofit organizations, but they Read More
Nonprofit Risk Management: Expect the Unexpected
A large institution that provides hundreds of millions of dollars in grants every year shared a secret with me. They would be reevaluating nearly 1,000 recurring grants to determine whether their nonprofit recipients were fiscally and operationally sound enough to carry out their intended impact. In other words, nonprofits that have been counting on a large grant year after year might get nothing very soon. True Read More
Endowment Management: Financial Roles on a Nonprofit Board
As a volunteer fundraiser and nonprofit board director, I have seen first-hand how the lack of understanding or definition of board members roles, specifically Finance Chair or Board Treasurer, can impact endowment management. Part of the challenge comes from lack of role clarity for board members. I recall how I was recruited to a nonprofit board many years ago and was very excited to get started since I was so Read More
Nonprofit Investing: Growing After a Major Gift
It`s a dream come true After years of planning and managing a well-crafted fundraising campaign, your nonprofit lands a game-changing, million-dollar, unrestricted gift. Or maybe it’s an accumulation of smaller donations that develops into a pool of cash many times greater than the nonprofit’s annual budget. While you’d think such an opportunity would launch a flurry of activity to deploy those funds, we’ve found Read More
Endowments and UPMIFA: Why It Matters
A nonprofit with a few years under its belt will eventually ask itself, "Should we have an endowment?” And while this is not a straightforward decision, on balance, the answer is yes. From a fundraising perspective, a nonprofit endowment demonstrates to prospective donors that this is an organization that has meaningful financial support to fulfill its philanthropic mission. However, managing an endowment requires Read More
