What you don’t know, can’t expect, or can’t control will hurt you. The recent pandemic has shown us that. Nonprofit organizations that investigate what could go wrong, how bad it could be, and how to prevent or correct problems BEFORE they happen are more resilient when crises hit. This process is called Risk Management. But let’s back up. What is “risk” actually? The textbook definition of Risk is an unintended, Read More
403 B Retirement Plan Rules
“I would like to take an early distribution from my nonprofit 403 b retirement plan so I can quit my job and travel. What are the 403 b distribution rules? What will be the tax consequences if I am unemployed or working free-lance at that point?” Um, what? This was one of the questions I was asked during a financial planning and investment educational session a couple of years ago. Ah, to be in those times once Read More
5-Point Emergency Reserve Check for Nonprofits
A question nonprofit leaders constantly ask us is: How much does our nonprofit need in emergency reserves? This question now has been brought into greater focus in light of the coronavirus pandemic. But the answer isn’t straightforward. How much a nonprofit needs on hand for emergencies is dependent on its risk profile. Risk profile is the organization’s ability and willingness to take chances that could lead to Read More
Redefining Electable: Nonprofits Building a Better Political Candidate Pipeline
With a bachelor’s degree from Stanford, a Juris Doctor from Harvard Law School and stints at the DOJ and private practice, Mondaire Jones has a platinum-plated resume that you’d think would make him a shoo-in for Congress. But Jones told the New York Times, “Growing up poor, Black, and gay, I never imagined someone like me could run for Congress, let alone win.” Jones won New York's 17th Congressional District, 2020 Read More
Up-and-Down-and-Up-and-Down: Q2 2020 Fairlight Global Markets Snapshot
Short and sharp, Fairlight’s Global Markets Snapshot summarizes the economic backdrop to Q’2 2020’s volatile results asset class by asset class. Up one day, down the next. Since late February, it’s been difficult to track markets reacting to the relentless effects of the coronavirus pandemic. While we’ve seen a rebound recently as economies slowly open, more declines may be ahead of us. A portfolio globally Read More
Pulling Back the Curtain: Mission-Driven Organizations Addressing the Weaknesses of the US Healthcare System
While the US boasts some of the most distinguished healthcare institutions and experts in the world, it is no match for the health and economic destruction of COVID-19. Worse, it has exposed weaknesses in a US health system that is large and complex. According to PolicyAdvice.net the US spends over $10,000 per capita on healthcare, twice the rate of other developed countries, yet it is struggling to provide care Read More
Words Matter: How the Lexicon of Financing Hinders Minority and Women Entrepreneurs
You’re “Too Early” Cat Berman was getting a good vibe. The CEO of CNote, a Bay Area startup fintech firm focused on socially responsible investing, explained, “We had an investor say, ‘This is phenomenal. Excellent team’.” Things were looking positive for this early stage company. Then the investor added, “We’re just not sure if you’re too early because of your traction.” Berman dug deeper to Read More
How to Invest Nonprofit Funds
Two questions nonprofit leaders constantly ask us are: What should we do with our nonprofit reserves? and Should we have an endowment? Neither question has a straightforward answer. There are so many variables that influence a reserves or endowment strategy. For that reason, we created this overview to help nonprofit board members, executives and major donors understand some general factors and considerations that Read More
Afraid to Talk About Money?
Sharing our financial challenges and insecurities can bring relief and ideas on how to take control of our financial futures. Many of us were taught as children and young adults not to talk about money. “It’s vulgar,” our parents would say, or “That’s rude to ask someone what they make or how much their house costs.” Instead we ruminate in private about these things, slyly looking up our friends’ houses on Zillow Read More
Active vs. Passive Investment Management
Active Investment Management or Passive Investment Management? That is THE question. Among investment professionals, anyway. While these two investment approaches can spark heated debate, few investors can effectively describe the difference. But understanding the difference between Active and Passive investing is consequential to your investment portfolio. Active Investing Summarized Let’s start with active Read More
