Managing a Non-profit?

It would give me great pleasure to know that my firm was able to help your charitable endowment or foundation achieve its objectives. As an investment advisor, this represents and opportunity to be a part of helping others in a worthy cause.

Many foundations manage their operation and their investments by committee. Working with an advisor, the committee could still function and be in control of the portfolio.  This is done via an investment policy statement.  while the advisor handles the day to day operation and oversight. The advisor’s job is to make specific investment selections and adjustments and keep the committee updated and informed.

 In a lot of cases the board wants to know the responsibility is shifted to a professional but the sometimes overlook the fees they are paying and the limited amount of service they receive.

Fees on several million dollars can be a full 1% or more and can be layered from the visible to the invisible. In a lot of cases these accounts are just dropped into a box and handled almost automatically ..not much differently than it is done for an individual. 

We are happy to review and analyze the fee structure and the portfolio management of any non profit investment portfolio.  The service is free and we would be happy to deliver a report to the board in writing or in person as appropriate for both parties. 


How We Can Help


Help Establish an Investment Policy Statement

It is important for the organization to establish investment guidelines up front. The investment policy statement would give both the board and the advisor guidelines for a well managed portfolio. It also puts the entire organization on a clear course of action and a way to financially manage its goals and direction.

Some organizations have policy statements that outline in detail how money is raised and how disbursements are made but skip over an actual investment policy. It is important to outline in general terms the types of investments and the type of diversification that would make the board comfortable.

Aid in Raising Funds.

Smaller organizations work hard to get the word out that they are looking for funds.  Sometimes they overlook some important fundraising concepts.

Here are a few:

  • If an individual is over the age of 70.5 and needs to take a required minimum distribution from an IRA, they could authorize their investment firm to direct part of that RMD directly to the charity of their choice.  By doing this they eliminate this amount of dollars to their income.
  • If they have highly appreciated stock, they could transfer shares, tax free to the charity of their choice. This is better than giving cash and they avoid any tax or capital gains on those shares of stock.  Once the charity receives the stock, they could sell it without a tax liability and use the money for their own purposes.
  • For large dollars, an individual could set up a Charitable Remainder Trust (CRT).  By doing this the individual would transfer funds to the trust. The trust would invest the money appropriately and pay an income stream to a beneficiary (could be a disabled sibling in need) Upon the death of that beneficiary, the remaining amount of money would go to the charity of their choice.  The beneficiary would get a tax favorable income stream and the charity would ultimately get the remainder of the investment while the donor does not pay tax on the highly appreciated property. To enter into a transaction like this the donor would have to consult with a qualified tax adviser or tax attorney.

As the investment advisor for the organization we may be able to chair a meeting of potential donors and talk about these potential tax strategies.

Contact Us for a Free Consultation!

Meet with us for a free consultation to determine your needs, objectives and risk tolerance.


Asset Management Associates

P.O. Box 742

South Windsor, CT 06074