Advice and Cash Flow Management for Non-Profit Organizations and Foundations
We can partner with your organization to assist in crafting Investment Policy Statements and provide advice about the ideal asset allocation that allows for appropriate flexibility for managing the organization’s cash flow, as well as needs that arise from distributions, grants, and scholarships.
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What Is an Investment Policy Statement?
An Investment Policy Statement (IPS) outlines the guidelines, objectives, and strategies for non-profit organizations and foundations—it’s like a blueprint for making investment decisions that provides a framework for achieving investment goals. While considering the risk tolerance and other constraints of the organization, the IPS considers the investor’s time horizon, risk tolerance, financial needs, appropriate asset allocation, and investment strategies that align with the investor’s risk profile.
How Does an Investment Policy Statement Help Non-Profit Organizations and Foundations?
An IPS specifies the target allocation of the portfolio across different asset classes (stocks, bonds, cash, real estate, and so on), provides specific guidelines and constraints for managing the investments, establishes the criteria for evaluating the performance of the investment portfolio, defines the benchmarks against which the portfolio’s performance will be measured, outlines the reporting requirements, clarifies the roles and responsibilities of the various parties involved in managing the investments, and articulates the process for regularly reviewing and monitoring the investment portfolio. In short, it’s a manual for how an organization’s assets and investments should be handled.
Why Should Non-Profit Organizations and Foundations Establish an Investment Policy Statement?
By having an investment policy statement in place, non-profit organizations and foundations can maintain discipline, make informed decisions, and align investment strategies with their financial goals. It serves as a reference point for investment professionals and helps ensure consistency and transparency in managing the portfolio.
Does Woodley Farra Manion Help Write Investment Policy Statements?
Preparing an Investment Policy Statement can be a daunting task for an organization, especially if you are drafting an official policy for the first time. We can share our expertise in writing an IPS that provides the guidance needed to invest the portfolio according to your Board’s wishes and aligns the long term goals of the organization with this strategy.
Why Should I Work with Woodley Farra Manion?
As a regulated firm, we adhere to industry standards. We encourage due diligence in selecting a firm and invite individuals to explore our services, track record, and client reviews—you’ll find that Woodley Farra Manion delivers exceptional service and financial advice.