An accessible and thorough guide to nonprofit investment policy fornonfinancial managers --essential information for maintainingfiscal health and the public trust
The first book to discuss the development of investment policiesspecifically for nonprofit organizations, Nonprofit InvestmentPolicies helps directors, trustees, and development officers atnonprofits create sound, comprehensive policies for their financialadvisors. Covering every element of investment strategy fornonprofits, the book explains investing legal concerns, theinvestment environment, the internal organization of an efficientcharity, how to get started in investment, how to use investmentsuccesses as a fund-raising tool, and much more.
Written in language that both financial and nonfinancial managerscan understand, Nonprofit Investment Policies includes: * An exploration of the unique characteristics of nonprofitresources, including endowment management, planned gifts, andsocially responsible investing * A full examination of the legal issues involved in nonprofitinvestment -- the tools officers and directors of charities need toprotect themselves from investment liability in an increasinglylitigious world * Case studies from the real world of nonprofit investment showingsuccessful policies in action --and failures that display policypitfalls to avoid * Advice on finding and hiring outside advisors, plus anexplanation of the essentials of investment accounting andperformance reporting * Tables and checklists to guide nonprofit managers in fiscaldecisionmaking.
If a nonprofit organization has any money in the bank, theorganization already has an investment policy, however informal.For many nonprofits, managing extra money is such a novel conceptthat they don't take full advantage of their on-hand resources. Butas organizations grow and their financial conditions improve,decision-makers must consider how best to manage and invest theseadditional funds. The nonprofit organizations Robert P. Fry, Jr.works with understand investing and how to spot and avoid shadyinvestments, as well as how to safeguard assets. Written inlanguage that both financial and non-financial managers canunderstand, Nonprofit Investment Policies explains the basics ofinvesting, how investing for nonprofits is unique, and how to workwith an investment manager.
This is not another get-rich-quick book about picking stocks andbonds. Rather, it is a book on how nonprofits can make gooddecisions. In the world of investments, good decisions areultimately more important than the occasional wizardry of anoutstanding portfolio manager, for unlike such wizardry, gooddecisions can be replicated in good times and bad by anyorganization that is committed to doing so --now, months from now,and years from now.
Clearly written investment policies codify these good decisions,increasing returns on investments and protecting boards andexecutive directors from possible litigation over the handling ofthe nonprofit's assets. Fry's principal goal is to providesufficient information on the overall investment environment sothat any organization can comfortably implement investmentpolicies. Nonprofit Investment Policies includes sample investmentpolicies plus analysis and guidance on these policies to helporganizations develop the policies that most closely fit theirgoals and objectives, resources, time constraints, risk tolerance,and limitations.
About the Author
ROBERT P. FRY, Jr. is a senior philanthropic consultant with the philanthropic services group of an international financial firm in Los Angeles, California.
