Serving on a nonprofit Board of Directors is a rewarding and meaningful way to give back to the community. It’s a labor of love for Board members, though some may not fully understand their fiduciary responsibilities in that role. The Investment Committee in particular is tasked with overseeing organizational assets; this is no small feat.

2018’s State of the Nonprofit Sector Survey found that even then, most nonprofit leaders saw financial stability and full-cost funding as top challenges. Post-pandemic, many organizations saw their funding drop while demand for services soared. Large nonprofits with expenses of at least $1 million were spared from the worst of the funding decreases during COVID-19, with some even experiencing increased donations.

Some organizations also benefited from increased government funding and now have extra cash resources; they may be looking at creating an endowment with that money and are exploring other investment opportunities besides the traditional fixed-rate certificate of deposit (CD).

What’s the Investment Policy Statement, and Why Is It Important?

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About the Authors:

Brad Wilks PBMares Wealth ManagementBradley C. Wilks, LACP
Senior Wealth Advisor

Bradley Wilks provides wealth management advice, risk management, and comprehensive financial planning to his clients. He holds a Life and Annuity Certified Professional (LACP) license from the National Association of Insurance and Financial Advisors (NAIFA) Commission.

Jonny Rosch PBMares LLPJon-Michael “Jonny” Rosch, CPA

As a partner with our parent firm, PBMares, LLP, Jonny manages audit and assurance engagements for not-for-profit organizations, including public charities, social welfare organizations, trade associations, business leagues, non-profit childcare centers, private schools, independent research organizations and 527 political action committees.