After years of planning and managing a well-crafted fundraising campaign, a nonprofit lands a game-changing, million-dollar gift. Or maybe the organization has accumulated funds over time that now has become a large cash balance many times greater than the nonprofit’s annual budget. When these nonprofits call us for assistance with their fund management, the cash often has been sitting at the nonprofit’s bank, Read More

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 boundaries lie and when and how to get involved. Oftentimes, Read More

When establishing an endowment, it is critical that the board, in its role as a fiduciary, executes an Investment Policy Statement (IPS) to establish clear objectives and management policies. In essence, the Investment Policy Statement sets out standards for the endowment that are maintained throughout the life of the endowment, keeping fiduciaries accountable for its supervision. Why does the organization need an Read More

Let’s say a community health clinic receives a $1 million donation to establish a permanent endowment fund specifically for providing free vaccinations to underserved populations. Ideally this gift would give the organization the ability to navigate financial uncertainties with confidence, ensuring it delivers on the mission to provide vaccines through economic highs and lows. For nonprofits managed over 20 years Read More

Once your organization has established the appropriate spending policy for your endowment, it is time to decide who will oversee it. Even if your organization hires an outside firm to manage the endowment investments, the nonprofit corporation and the board are the stewards of the endowment and must form a committee to enact those responsibilities.   Larger nonprofit boards may form an Investment Committee and Read More

Every nonprofit organization benefits from endowments. They can provide financial stability and serve as a nest egg of capital to generate income. It’s important to remember that not all endowments are built the same. Managing and spending these funds needs a responsible and strategic approach. A well-defined endowment spending policy dictates how the funds are utilized and should align with the organization’s Read More

Now that we know what a nonprofit endowment is, it’s important to recognize that establishing an endowment fund is a significant goal for any nonprofit organization. A successfully managed endowment often leads to long-term financial health and mission fulfillment. An endowment acts as a financial safety net, enabling nonprofits to weather economic fluctuations and invest in their future. However, that doesn’t mean Read More

Nonprofits have the power to do amazing things for the communities they serve, but like all endeavors, they require funding. Traditional fundraising is a necessary part of continuing day-to-day functions, but you’ve likely already experienced the challenges of maintaining a steady stream of donations.  While people often associate endowments with large universities and hospitals, nonprofits with smaller budgets, say Read More