The very recent risk of a federal funding freeze and the recent stock market selloff have shown us that financial stability for nonprofits is fragile. Even with good nonprofit financial planning, organizations survive on the thinnest of margins, focusing all resources on the philanthropic mission, often with very little wiggle room to maneuver out of an emergency. An untimely mistake or an unanticipated loss can Read More
Nonprofit Investing and Emerging Markets
At Fairlight Advisors, we have long advocated that a nonprofit endowment investment strategy include a well-diversified, global market portfolio which includes both equity and fixed income allocations to emerging markets. The last five years of returns have been lumpy for Emerging Markets to say the least. While there were some bright spots such as China’s faster recovery from the pandemic in Q’3 of 2020, there were Read More
What’s on the Fixed Income Menu: An Array of Solutions for Nonprofit Reserves
Imagine a toolbox with only one tool: a hammer. The hammer is versatile for projects big and small, but if you’re building a house, as we all know, a toolbox with a lonely hammer won’t get the job done. In the same way, building a financially resilient nonprofit needs a variety of financial planning tools to fund the philanthropic mission. Yet several small to midsized nonprofits park all their funds—whether for Read More
Three Things to Know NOW to Launch Your Nonprofit Endowment
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. But also recognize that managing an 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
Cracking Your Imposter Code: How to Find Your Authentic Voice as a Nonprofit Leader
At our monthly Social Impact Advisory Group meeting, we heard from Human Resources leadership expert and executive coach, Paul N Larsen, who showed our group actionable ideas Nonprofit Leaders can take to integrate and celebrate our “imposter” in our everyday lives. The following presentation was edited for length and clarity in printed format. Stephanie Shaterian In our Social Impact Advisory Group, we tend Read More
Thoughts on the Need for a Nonprofit Reserve and Risk Management
Mary Hiland of Inspired Nonprofit Leadership interviews Maya Tussing to discuss nonprofit risk management, why nonprofits need a reserve, how much is required and other insights. INTRODUCTION Welcome to Inspire Nonprofit Leadership, where you'll hear insights and useful strategies as well as lessons learned from other nonprofit leaders and valuable tips from a variety of experts. Here to help you Read More
4 Budget Rules for the 21st Century
For organizations managing to a calendar year, January told you how effective you were as a financial forecaster. Did it bring good news or bad? Is it what you expected? Does one month even matter? 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. Twelve Month Budgets Are Arbitrary An annual budget is a Read More
The Network Gap: Impact on Nonprofits and Their Financials
Having a powerful network can bolster a nonprofit’s donor base and open access to additional funding sources. But what happens when the Executive Director and Board Members do not have a powerful network? I attended a half-day summit at LinkedIn’s San Francisco headquarters in November on The Network Gap. As LinkedIn defined it, “The network gap is the advantage some have based on where they were born, where Read More
Citywire USA: Women in Wealth: Building Personal Bonds with Clients
