For nonprofit leaders, CFOs, and finance committees, balancing liquidity with donor intent can be a constant challenge. Restricted funds and endowments often represent some of an organization’s most important and most sensitive assets.

Responsibly managing restricted funds and endowments secures donor trust and helps you avoid regulatory scrutiny. Errors in tracking, commingling, or investing these dollars inappropriately, on the other hand, can trigger compliance issues under ASC 958 or the Uniform Prudent Management of Institutional Funds Act (UPMIFA), as well as reputational damage that can take years to repair.

Proper stewardship requires clear policies, rigorous tracking, and financial infrastructure designed for restricted fund management. Below, you’ll find some of the essential dos and don’ts of managing restricted funds and endowments effectively.

Endowment spending decisions are rarely about the number alone. Board members and nonprofit leaders are responsible for supporting today’s programs while safeguarding resources for the future, which means multiple factors must be considered when setting a withdrawal rate. 

For many nonprofits, the question isn’t if professional investment guidance will be helpful; it’s when. 

Early on, managing reserves and small investment accounts internally may feel manageable. But as assets grow, donor generosity increases, and boards ask more thoughtful questions, the responsibility around stewardship naturally becomes more complex. 

So how do you know when it’s time to partner with an investment advisor? 

This post walks through the common signs nonprofits experience as they grow, along with what an advisor can help with and how to choose the right one.  

If your nonprofit has an endowment or board-designated reserve, you’ve likely asked (or been asked) a version of this question: “How much of this can we actually spend?” 

It’s a reasonable question. But without a clear, written policy in place, the answers often vary depending on who’s in the room, how the market is doing, or what the budget looks like that year. 

That uncertainty can lead to confusion, tension, and decisions that feel reactive rather than strategic. 

A spending policy changes that. 

It gives your board and leadership team a shared understanding of how much you can draw from your invested funds each year, and helps ensure those decisions are grounded in purpose, not pressure. 

In this post, we’ll walk through what a spending policy is, how it works, and why it’s one of the most important financial tools your nonprofit may not be using yet.

Are you struggling to find the right investment advisor for your nonprofit? 

You’re not alone. As a former Development Director, I know the overwhelming feeling of navigating the complex world of investments. When your mission’s success is at stake, you may be unsure of where to start and whom to trust with our nonprofit’s financial future.

Are you a nonprofit looking to increase your funds and generate additional revenue? Investing or creating an endowment may be something you’ve considered, but you may not know where to start. If you’re asking “what is investment management for nonprofits?” it’s smart to learn more about maximizing your returns while maintaining your charitable mission. In this article, we dive into if nonprofits can invest, why effective nonprofit investment management is important and we offer four tips to help you manage your organization’s funds.