One of the responsibilities of a nonprofit board is to manage the organization’s assets prudently. Unless you have someone on staff with significant investment expertise, partnering with an investment advisor is a prudent decision.

While your board has a fiduciary responsibility for your nonprofit’s assets, investment oversight authority is often delegated to a finance or investment committee. This checklist will guide your committee through six topics that should be reviewed regularly: Committee Charter, Spending Policy, Investment Policy Statement, Investment Fees, Conflict of Interest, and Access to Records.

The Committee Charter is a key element of a successful oversight group and outlines the authority, roles, and responsibilities of the committee.

Committee Charters help ensure you’re meeting your fiduciary duties.

Have you reviewed your Investment Policy Statement lately?

A clearly articulated Investment Policy Statement (IPS) helps meet your fiduciary obligations and acts as a roadmap for oversight of your organization’s assets.

An Investment Spending Policy helps ensure your nonprofit organization is on the same page when it comes to your endowment spending. It covers topics including who has discretion over distributions, what the spending rate of the endowment should be, and what is considered a qualified expenditure.

A well written Conflict of Interest Policy provides security to your organization. It helps manage personal conflicts of interest among leaders of the organization protecting your organization from a loss in reputation, donor gifts, and potential legal action.

Updated: 10/18/21

When it comes to finding a partner to manage your nonprofit's investments, your search process will likely include issuing a Request for Proposal (RFP). This template covers 8 of the most important items you should consider asking about in your next RFP.