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
3 Things Nonprofits Need to Know About Markets
Nonprofit endowment investors depend on the stock market to be reasonably consistent so they can meet their philanthropic program spending. Unfortunately, the stock market has been extremely unpredictable or volatile, zigzagging like a rollercoaster, reacting emotionally to the latest news. So how do nonprofits with a true endowment navigate these volatile market conditions? Here are 3 things nonprofits should know Read More
3 Things Nonprofits Should Know About Cash
So far two regional banks have failed and others are struggling which is a very nasty way reminding us that importance of nonprofits having emergency cash on hand. In these chaotic economic times, here are three things nonprofits should know about emergency reserve cash. Have a Nonprofit Reserve? Use it! With a recession looming, emergency funds is lifeline toward strength. Document and monitor reserve spending with Read More
How to Manage Nonprofit Cash
Well, it’s happened. A regional bank failed and others are struggling. What does it mean for a bank to fail? It means the bank cannot fulfill its obligations to depositors or borrowers. While bank failures are rare, we are again reminded that they do happen. Since the year 2000, over 500 banks have failed, the majority during the great recession of 2008. Why should nonprofit leaders care about this? Many small to Read More
Why Target Date Funds in Your 403B?
Whether your nonprofit is starting a 403 B Plan or you are reviewing your retirement plan investments, having Target Date Funds in the line-up is a good thing. Why are Target Date Funds a good thing in a 403 B or Nonprofit Retirement Plan? At Fairlight, we often find nonprofit employees asking us questions like “Where should I put my money” and “How often do I need to look at my retirement plan”? We also hear Read More
Three Lessons For Nonprofits When Banks Fails
On Friday, March 10th, major headlines around the world announced the failure of Silicon Valley Bank (ticker SVB) and the largest bank failure since Washington Mutual in 2008. Understandably, this made investors nervous, including nonprofit leaders and board members even though many did not hold deposits with SVB directly. The question on their minds: “Our my bank deposit accounts at risk now? Were other, regional or Read More
A Fairlight Advisors Nonprofit Financial Planning Update: 9.30.22
Well, it's been a wild ride in the stock market this week for nonprofit investors, much like living at home with a teenager, I've still got one of my own here. But we've all been teenagers once upon a time, we've been cold, one minute, hot and bothered the next up, down. And that's a lot of what we've been experiencing in the market this week. But here at Fairlight advisors, we sit down with our nonprofit endowment Read More
