Whether you’re a Nonprofit Leader, Board Member or merely interested in today’s social issues, these articles explore a wide range of topics critical to managing a thriving mission-focused enterprise. The subjects of this series range from risk management, financial resilience and cross-sector collaboration.
Whether you’re an individual investor or philanthropic leader with an endowment, these articles demystify the world of investing so you can be better informed. The subjects of this series range from Global Market Snapshots to the basics of investing and capital markets.
If your nonprofit is looking to grow after a major gift, investing is the next step. Learn how to get started with nonprofit investing in this article.
The stock market has been extremely unpredictable or volatile, zigzagging like a rollercoaster, reacting as it will to the latest news. Here are 3 things nonprofits should know about investing endowments in turbulent markets.
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.
So what does your nonprofit learn when banks fail? Three lessons come to mind:
The last five years of returns have been lumpy for emerging markets to say the least. However, at Fairlight Advisors, we’ve long advocated for a well-diversified, global market portfolio which includes both equity and fixed income allocations to emerging markets.
While the fixed income markets have taken a rare beating due to rate increases by the Fed, nonprofits now have more options to invest operational funds parked for a short time horizon. Nonprofit leaders should become familiar with the array of fixed income investments as they can provide returns at a lower level of risk, depending on an organization’s time horizon.
During market volatility, nonprofit leaders and board members can begin to get nervous about the endowments investments. While most nonprofits can refer to their investment policy for guidance, it also helps to remember three important concepts when reviewing your nonprofit’s long-term investment.
We spoke to Bill Kan, the founder of Candent Capital, to ask him what he thinks about all of the buzz around whether we are going to suffer another recession, after having experienced one two years ago.
Russia’s invasion of Ukraine has created another setback for a global economy struggling to recover from the ravages of the pandemic. But there are glimmers of hope for the US economy.
Since Russian military forces invaded Ukraine, pundits are predicting dire global economic and investment consequence. Still, the outlook is very uncertain, which means sticking to one’s long-term investment strategy is the best defense.
It is not uncommon for wealthy donors to offer alternative investments as gifts to their favorite nonprofits. Board members overseeing a small nonprofit endowment or foundation may also be seduced by social media influencers peddling the potential outsized rewards of alternatives and recommend the asset class for their endowment. What is a nonprofit to do?
Tactical moves to protect a nonprofit’s endowment or one’s personal investments could give peace of mind in the short-term but be disastrous in the long-term. Instead, employing a strategy based on the Global Market Portfolio and the fundamental principles of investing is a more effective approach.
Short and sharp, Fairlight’s Global Markets Snapshot summarizes the economic backdrop to Q’2 2020’s volatile results asset class by asset class.
Active Investment Management or Passive Investment Management? That is THE question. Among investment professionals, anyway. Understanding the difference between Active and Passive investing is consequential to your investment portfolio.
The financial industry has always employed economists and investment strategists in the role of market medium, advising investors on what market securities to buy and sell. With so varied opinions, what’s the average investor to do?
This time has laid bare how well advisors have understood their clients’ needs and risk profile. Yet there are things advisors can do to better appreciate their clients’ situation outside analytical assessments.
Learn how asset allocation aims to maximize returns with lower volatility compared to investing in a single asset class.
Learn what do you do when you find that your asset class percentages are not in line with your investment strategy due to changes in prices.
Learn how and when you should rebalance your portfolio.
Central banks jumped into action as Novel Coronavirus worries continued to batter markets, with the Fed cutting interest rates 0.50% and the ECB and Bank of England expected to follow. This action was meant to stimulate financial activity by making borrowing cheaper. Economists wonder how effective further rate cuts will be to boost the economy against a health epidemic.
Do you know your investment philosophy? Do you know your advisor’s investment philosophy? Do they align? Watch our video to learn more.
Learn about the tools the experts use to assess whether their charitable donations are having an impact on the communities they support.
Investors should take caution before taking the plunge with ESG investing by becoming aware of these three major hurdles.
Learn about how a donor advised fund or DAF can be an effective tool in your giving strategy.
With the US possibly running out of cash in a month, nonprofit leaders and board members should be seriously asking themselves how much cash on hand the organization has in the event of an emergency.
Recession fears leave nonprofits bracing for the double threat of increased demand from their communities struggling to make ends meet as well as donors holding back until the economy shows some strength. Yet this is THE time for nonprofits to show their own strength, particularly for organizations focused on communities in financial straits.
While any unplanned funding bounty provides enormous opportunity for a nonprofit striving to improve philanthropic impact, a sudden increase in financial support requires an equal level of preparation to effectively receive that funding.
In these chaotic economic times, it’s important that your nonprofit’s financial plan to address how easily the organization can access cash. Here are three things nonprofits should know about emergency reserve cash.
A nonprofit with a robust financial plan will ensure that the organization’s cash reserves are fully insured BEFORE an economic crisis.
A quick update from Fairlight Advisors on nonprofits with an investment, economic and financial lens.
Having a powerful network can bolster a nonprofit’s donor base, ensure financial resilience and open access to additional funding sources. But what happens when the Executive Director and Board Members do not have a powerful network? The result is a Network Gap.
How do nonprofits build up financial resilience? They practice these three financial strategies.
As a nonprofit board member, you may not know how to assess whether an organization is financially resilient, yet you can see from the outside that the nonprofit is well supported. You can start by taking the Fairlight Resilience Assessment and help give your nonprofit board x-ray vision. Read on for more information to support your nonprofit’s financial resilience.
Is your nonprofit financially resilient? Can it survive the onslaught of crises after crises and still fulfill its philanthropic mission? There are a few factors your organization can x-ray to get an initial indication of financial resilience in the face of uncertainty.
Nonprofit cash reserves to be dispersed to numerous programs and expenditures over multiple years can easily grow to large amounts, exposing the organization to various financial risks. To find the proper risk/reward balance needed for a strong cash optimization program, nonprofits should answer the following three questions.
Cash gifts to nonprofits that are formally structured as an Emergency Operating Reserve provide a true lifeline, allowing them to be financially resilient in the face of adversity.
How does a nonprofit leader inspire passion in major donors to give unrestricted funds? By communicating how internal challenges tie directly to the mission and the community served.
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.
While the internet and information economy has brought transparency about many things, we still harbor a shame and distaste for talking about money. We can break the “money taboo” together.
We asked Brit Summerill, Partner with NOW CFO what lessons CFOs learned from the last recession. Here are a few things organizations need to do to start protecting themselves.
How organizations develop and use budgets has changed over the past decade and it’s essential that leadership reflect the new thinking toward financial strength.
Many people have illnesses and health-related problems because of the debt and financial stress they are facing.
Is there such thing as a nonprofit having too much in operating reserves? It depends.
Prudent institutions and individuals factor in potential inflation and the time to purchase when putting funds aside for a future expense. Here’s why.
Nonprofit CFO Sally Petersen is interviewed on how nonprofit leaders can maintain robust financials to keep the organization on track.
Why nonprofits should demonstrate a suitable financial cushion to donors and grantors.