Resources

Topic: “Investments”

Investment Terminology

Investing your foundation assets effectively can increase investment returns and thereby provide additional assets to help fulfill your charitable goals. Over the longer term, good investment decisions lead to the potential for more grants and greater impact. Poor investment decisions typically lead to fewer grants and lessen a foundation’s impact. In addition, state law requires... Read More

Investment Oversight: Getting Up to Speed

Consider a foundation with assets of $10 million. A foundation of that size would be required to disburse $500,000 annually to satisfy the 5% distribution requirement. Although you are (hopefully) carefully working to decide who gets what portion of this $500,000, the remaining $9.5 million also needs your attention. $9.5 million. If the sheer size... Read More

Investment Oversight: Getting the Work Done

It takes work and time to establish and oversee an effective investment process. Understand your fiduciary duty and seek out those who can assist you. A board’s key responsibilities Establish the foundation’s investment policy and develop the investment policy statement—The full board, an investment committee of the board, or an investment consultant working with the... Read More

Investment Fees Overview

Foundations face a number of possible investment expenses whose range is considerable. Be sure to ask questions of your investment managers or your consultant, and don’t accept fuzzy answers. Make reviewing these fees a regular leadership activity. A snapshot of typical fees Custodial fees—These fees are paid to an institution (e.g., bank) to hold your... Read More

Investment Committees

Even small foundation boards can benefit from developing an investment committee with just a few members so it is clear who is leading the charge. Board members who understand investing make natural choices for an investment committee; however, they should serve alongside less experienced board members. (Be sure more than one experienced person is on... Read More