Best Practices for an Effective Investment Committee
May 10, 2017
Most nonprofits rely on an investment committee to oversee their investment portfolios. This oversight group can have a big impact on real long-term wealth preservation and ensuring resources are available to realize organizational goals and aspirations.
These best practices are consistent with the fiduciary duties of care, loyalty and obedience, and include:
Above all, these best practices, which are fundamental regardless of the nature or size of the organization, can be boiled down to five C’s: commitment, coordination, communication, continuity and completion.
While an investment committee can operate successfully with a variety of structures and approaches, these best practices can make any investment committee more efficient and effective. This should lead to improved long-term portfolio operation—ultimately benefiting grantees, beneficiaries and stakeholders.
For more information, please contact a member of the Smith & Howard nonprofit team, at 404.874.6244 or simply fill out the form below.
This article was written by Lee Klumpp, CPA, CGMA, and originally appeared in BDO USA LLP’s Nonprofit Standard Newsletter – Spring2017. Copywrite 2017 BDO USA, LLP. All rights reserved. www.bdo.com.
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