“We don’t need any policies.” That was an actual quote from a nonprofit board member in response to whether the organization should establish an Investment Policy Statement to govern the organization’s endowment. A policy and procedure nerd like me was horrified at the lax approach to nonprofit governance. Policies can be interpreted as unnecessary, bureaucratic rules that limit flexibility, yet a clear and concise Read More
What Is An Endowment and Tips Your Nonprofit Needs to Know
What is an endowment and should we have one? Nonprofit leaders frequently ask us these questions so we break down the details here. An endowment is the most recognized strategy an organization uses to invest a large donation typically restricted by a donor to support a specific program either over a set time frame or indefinitely. For example, a wealthy philanthropist could donate multi-year funds to their favorite Read More
Choosing Nonprofit Endowment Advisors in Six Steps
Simplifying Advisor Selection Process for Your Endowment When I first started doing nonprofit board work several years ago, I remember receiving advice along the lines of “Remember, your job as a Nonprofit Board Director is to advise. Knowing your boundaries is important for the success of the leadership team and the organization.” The challenge for many nonprofit board members, however, is knowing where those 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
