A well-governed nonprofit investment program should have more than good returns and a solid IPS. It has independent checks built into the structure, so no single firm has unchecked control over both the management and the holding of your assets. Understanding how third-party custody works is one of the cleaner ways a board can strengthen its oversight without adding complexity.

Your nonprofit needs secure funding to power your programs, and it might be time to consider your financial future beyond the traditional annual giving cycle. An endowment is an excellent option for nonprofits of all sizes to establish long-term financial stability.

An endowment is a pool of assets established by charitable contributions and invested by nonprofits to provide long-term, sustainable financial support for its mission or specific programs, often as defined by the donor(s).

For example, a donor might establish a scholarship endowment at a university. Rather than spending the principal, the university would distribute a portion of the endowment’s accumulated investment earnings each year to pay for students’ education.

However, while endowments can offer perpetual funding, they also come with certain limitations and requirements, meaning nonprofits should carefully consider whether their organization is prepared to properly steward and operate one. This article will review the top four considerations your organization should assess before deciding whether to start an endowment.

A good investment policy statement(IPS) should make investment decisions easier, not harder. It should give your board clarity, protect your organization, and hold up under scrutiny.

Most nonprofits have an IPS. Not all of them have one that's actually doing its job. In our work with nonprofit organizations, we see the same problems come up again and again: documents that are outdated, too vague to be useful, or simply disconnected from how the organization actually operates.

None of these are catastrophic on their own, but they add up. And when a difficult market or a board transition arrives, a weak IPS is the wrong time to find out.

Here are the most common mistakes we see, and what to do about them.

As a nonprofit leader, you have probably heard of the Uniform Prudent Management of Institutional Funds Act (UPMIFA). But are you familiar with what it includes and who needs to follow it? Don’t let your organization pay the penalty of being noncompliant with this important act. This post covers the key components of the law and its goals, who it applies to, an overview of steps organizations should take to ensure compliance with the act, and potential penalties for noncompliance.

Major campaigns, like capital or comprehensive campaigns, are no small feat. Before you can successfully engage your community and guide your organization to new fundraising heights, you must ensure your stakeholders are ready for such a monumental undertaking. 

That’s where feasibility studies, also known as campaign planning studies, come into play. In this guide, we’ll walk through five fundamental steps your nonprofit must take to plan and carry out a successful feasibility study.