For nonprofit organizations, managing an endowment is a critical responsibility that comes with a unique set of challenges and ethical considerations. A key decision in this area is whether to manage the endowment in-house or to outsource this task to professionals. This choice involves weighing the capabilities of internal staff against the potential benefits of external insights. The Risks of In-House Read More
Grasping The Responsibilities of UPMIFA
The Uniform Prudent Management of Institutional Funds Act (UPMIFA) is a crucial model law for nonprofit and charitable organizations. It offers guidance on investment decisions and endowment expenditures, aiming to ensure responsible and prudent fund management to support long-term goals and missions. For nonprofit leadership and board members, understanding and implementing UPMIFA is essential for the financial Read More
Unrestricted Gifts Still Need Structure
In the nonprofit sector, unrestricted gifts present a unique set of opportunities and challenges. These funds come with no strings attached, providing organizations with a rare flexibility in how they allocate their resources. However, the freedom associated with unrestricted gifts also brings a responsibility to make wise financial decisions that uphold the integrity of the nonprofit and fulfill its mission. Read More
Market & Economic Snapshot Q3 2023
Gift Acceptance Policies & Endowments
Nonprofit organizations most often rely on endowments and charitable donations to fuel their mission-driven work. While these financial resources are essential, they also come with complexities that demand careful management and consideration. Concepts such as donor agreements, standardized policies, and gift acceptance guidelines are significant means of ensuring that the donation furthers the organization’s mission Read More
Financial and Investment Challenges Faced by Nonprofits with Large Philanthropic Gifts
MacKenzie Scott has already donated an estimated total of $146 million to 24 nonprofits this year, according to The Chronicle of Philanthropy. This amount is based on organizations that have publicly stated they received a donation from Scott in 2023. The number of nonprofits is probably much higher. Scott's donations range from $1 million to $15 million, and she has given to community-led and -focused organizations Read More
Endowment Spending Policies: Read The Fine Print
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 like Read More
