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 a 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
How Much in Reserves Should a Nonprofit Have?
On May 1, 2023, Janet Yellen, the US Treasury Secretary, announced that the US might run out of cash in a month. This should have nonprofit leaders and board members seriously asking themselves how much cash on hand the organization has in the event of an emergency. Three years ago, the financial wreckage of the pandemic hit quickly so nonprofits without adequate reserves were able to rely on government and Read More
Recession-Proof Your Nonprofit in These Five Ways
Check your investment markets app and you’ll see a lot of red. President Trump’s on-again, off-again tariff policies suggest a protracted trade war, unnerving financial markets, especially in sectors sensitive to economic slowdowns. Other indicators, such as decreasing business and consumer confidence and the rising prices of treasuries and precious metals, imply an increased probability of a recession, commonly Read More
3 Ways Nonprofits Prepare for Increased Financial Support
The last three years have been challenging for a number of nonprofits, yet a lucky few received increased philanthropic support from, for example, pandemic government grants or private foundations, or some have received major gifts and bequests from wealthy donors. And yet while any unplanned funding bounty provides enormous opportunity for a nonprofit striving to improve philanthropic impact, a sudden increase in Read More
Endowment Advisor Search? Prepare With Three Actions
Is your nonprofit getting ready to do an endowment advisor search? Here are three actions your nonprofits should take before you speak to an external advisor. Is your nonprofit getting ready to do an endowment advisor search? Here are three actions your nonprofit should take before you speak to an external endowment investment advisor. Before we discuss preparation, I have a question. Have you ever been in a Read More
