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
Recession or Not? A Conversation with Bill Kan, Candent Capital
We recently spoke to Bill Kan, the founder of Candent Capital, a firm based in the Bay Area providing financial planning, investment and wealth management services, 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. So Bill are we going to have a recession or not and what should nonprofit endowment investors be prepared Read More
Are You Ready for Your Nonprofit Endowment?
We’ve heard lately from several small nonprofits asking whether they’re too small to start an endowment. The quick answer is, no! The choice to start an endowment is not based on size but more on purpose. An endowment is a pool of funds set aside for a medium or long-term spending need, regardless of size or mission. When a nonprofit maintains an endowment, it indicates that it is committed to uninterrupted community Read More
Nonprofit Endowment Investing During a War in 9 Charts
Nonprofit endowments with funds to deploy toward their philanthropic mission have been trying to make sense of Russia’s invasion of Ukraine. The conflict has created another setback for a global economy struggling to recover from the ravages of the pandemic. The West’s economic sanctions have spurred investors to dump Russian assets, causing the ruble to lose over two-thirds of its value vs. the dollar almost 10 days Read More
Nonprofit Endowment Investing and Geopolitical Risk
It has been less than a week since Russian military forces invaded Ukraine and already pundits are predicting dire global economic and investment consequence. Still, the outlook is very uncertain as no one can predict how sanctions will affect President Putin’s actions, as well as those of other actors in this crisis. Uncertainty is never a time to change one’s long-term nonprofit endowment investment strategy. Read More
What Your Nonprofit Endowment Needs and Why
“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
Up-and-Down-and-Up-and-Down: Q2 2020 Fairlight Global Markets Snapshot
Short and sharp, Fairlight’s Global Markets Snapshot summarizes the economic backdrop to Q’2 2020’s volatile results asset class by asset class. Up one day, down the next. Since late February, it’s been difficult to track markets reacting to the relentless effects of the coronavirus pandemic. While we’ve seen a rebound recently as economies slowly open, more declines may be ahead of us. A portfolio globally Read More
Active vs. Passive Investment Management
Active Investment Management or Passive Investment Management? That is THE question. Among investment professionals, anyway. While these two investment approaches can spark heated debate, few investors can effectively describe the difference. But understanding the difference between Active and Passive investing is consequential to your investment portfolio. Active Investing Summarized Let’s start with active Read More
