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 and 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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