Concerned About Investment Oversight in Your Nonprofit?

The boards for nonprofit organization are critical to the success. But what about the financial future and viability of the venture? Not everyone involved in a nonprofit will be skilled in determining the best financial plan, so it is important to rely on the right people to help. Investment committees are now playing a bigger role in the financial planning for these ventures. By evaluating the risk around the potential portfolios, you can improve the future financial health of your nonprofit.

Outsourcing is one possible solution. And nonprofits value these investment committees and want to give them better access to information. Or, they want to improve spending policies so risk analysis can be conducted more efficiently.

Businessman take a position to protect the piggy bank in hand. Concept of protection of business assets and finance investment.

Consider some of the following concerns that nonprofits have surrounding their investment oversight.

  • Increasing diversification. Working with an expert will help your organization create a more diverse investment portfolio. Often, the more diversity in these investments the lesser the risk, which is something most nonprofits want to mitigate.
  • Considering alternative investments. You have a variety of ideas to consider when it comes to what is called an “alternative investment.” Knowing how and why to utilize these particular options is helpful for creating a robust and healthy investment package.
  • Working with investment consultants. Many nonprofits want to work with outsourced investment experts. These consultants can, impartially, assist an organization in creating an investment plan that will help enhance their overall mission.
  • Addressing market changes. The officers tasked with running a nonprofit are often involved in a variety of aspects of the community and organization. This means that taking the time to research investments can actually pull them away from their duties. An expert can better address market changes as they happen and advise the organization to take action.
  • Analyzing risk. Similarly, the expert will also be able to analyze and mitigate risks involved in financial investments. The board or core of a nonprofit simply may not be equipped to deal with this analysis, which could negatively affect what they are able to provide for their community. All of this can be addressed by working with an investment expert.

It is critical to a nonprofit’s success to have the right money management strategy in place. To learn more, contact us for help creating a plan and being even more successful in the coming years.

To learn more about how our firm can serve your nonprofit organization, don’t hesitate to contact Kathy Corcoran at (302) 254-8240.


Share Button