[{"data":1,"prerenderedAt":508},["ShallowReactive",2],{"document-investment-policy-statement-D12883":3},{"document":4,"label":23,"preview":11,"thumb":24,"thumb600":25,"description":26,"descriptionCustom":6,"apiDescription":5,"pages":8,"extension":10,"parents":27,"breadcrumb":31,"related":39,"customDescModule":179,"customdescription":26,"mdFm":180,"mdProseHtml":507},{"description":5,"descriptionCustom":6,"label":7,"pages":8,"size":9,"extension":10,"preview":11,"thumb":12,"svgFrame":13,"seoMetadata":14,"parents":16,"keywords":15},"INVESTMENT POLICY STATEMENT INTRODUCTION The [COMPANY NAME] Fund (hereinafter referred to as the \"Fund\") was created to provide perpetual financial support to the [COMPANY NAME] (the \"Institution\" or \"Company\"). The purpose of this Investment Policy Statement is to establish guidelines for the Fund's investment portfolio (the \"Portfolio\"). The statement also incorporates accountability standards that will be used for monitoring the progress of the Portfolio's investment program and for evaluating the contributions of the manager(s) hired on behalf of the Fund and its beneficiaries. ROLE OF THE INVESTMENT COMMITTEE The Investment Committee (the \"Committee\") is acting in a fiduciary capacity with respect to the Portfolio and is accountable to the Board of the Company and to the Executive Committee, for overseeing the investment of all assets owned by, or held in trust for, the Portfolio. This Investment Policy Statement sets forth the investment objectives, distribution policies, and investment guidelines that govern the activities of the Committee and any other parties to whom the Committee has delegated investment management responsibility for Portfolio assets. The investment policies for the Fund contained herein have been formulated consistent with the Institution's anticipated financial needs and in consideration of the Institution's tolerance for assuming investment and financial risk, as reflected in the majority opinion of the Committee. Policies contained in this statement are intended to provide guidelines, where necessary, for ensuring that the Portfolio's investments are managed consistent with the short-term and long- term financial goals of the Fund. At the same time, they are intended to provide for sufficient investment flexibility in the face of changes in capital market conditions and in the financial circumstances of the Institution. The Committee will review this Investment Policy Statement at least once per year. Changes to this Investment Policy Statement can be made only by affirmation of a majority of the Committee, and written confirmation of the changes will be provided to all Committee members and to any other parties hired on behalf of the Portfolio as soon thereafter as is practical. INVESTMENT OBJECTIVE AND SPENDING POLICY The Fund is to be invested with the objective of preserving the long-term, real purchasing power of assets, while providing a relatively predictable and growing stream of annual distributions in support of the Institution. For making distributions, the Fund shall make use of a total-return-based spending policy, meaning that it will fund distributions from net investment income, net realized capital gains, and proceeds from the sale of investments. ASSET ALLOCATION POLICY The Committee recognizes that the strategic allocation of Portfolio assets across broadly defined financial asset and sub-asset categories with varying degrees of risk, return, and return correlation will be the most significant determinant of long-term investment returns and Portfolio asset value stability. The Committee expects that actual returns and return volatility may vary from expectations and return objectives across short periods of time. While the Committee wishes to retain flexibility with respect to making periodic changes to the Portfolio's asset allocation, it expects to do so only in the event of material changes to the Fund, to the assumptions underlying Fund spending policies, and/or to the capital markets and asset classes in which the Portfolio invests. Fund assets will be managed as a balanced portfolio composed of two major components: an equity portion and a fixed income portion. The expected role of equity investments will be to maximize the long-term real growth of Portfolio assets, while the role of fixed income investments will be to generate current income, provide for more stable periodic returns, and provide some protection against a prolonged decline in the market value of equity investments. Cash investments will, under normal circumstances, only be considered as temporary Portfolio holdings and will be used for Fund liquidity needs or to facilitate a planned program of dollar-cost averaging into investments in either or both equity and fixed income asset classes. Outlined below are the long-term strategic asset allocation guidelines determined by the Committee to be the most appropriate, given the Fund's long-term objectives and short-term constraints. Portfolio assets will, under normal circumstances, be allocated across broad asset and sub-asset classes in accordance with the following guidelines: Asset class Sub-asset class Target allocation Equity [#]% U.S. [#]% Non-U.S. [#]% Fixed income [#]% Investment grade [#]% Below-investment grade [#]% Cash [#]% ",null,"Investment Policy Statement","4",513,"doc","https://templates.business-in-a-box.com/imgs/1000px/investment-policy-statement-D12883.png","https://templates.business-in-a-box.com/imgs/250px/12883.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#12883.xml",{"title":15,"description":6},"investment policy statement",[17,20],{"label":18,"url":19},"Human Resources","/templates/human-resources/",{"label":21,"url":22},"Company Policies","/templates/company-policies/","Investment Policy Statement Template","https://templates.business-in-a-box.com/imgs/400px/12883.png","https://templates.business-in-a-box.com/imgs/600px/12883.png","\u003Ch4>Understanding an Investment Policy Statement\u003C/h4>\n\u003Cp>In the realm of financial management, crafting a clear strategy for investments is crucial for ensuring alignment with the financial goals and risk tolerance of an individual or organization. An Investment Policy Statement (IPS) serves as a fundamental document that outlines the guiding principles for the investment decisions of portfolios. It provides a strategic blueprint for financial advisors and clients, setting the parameters for making investment choices that are in sync with the long-term financial objectives and constraints.\u003C/p>\n\u003Ch5>What is an Investment Policy Statement?\u003C/h5>\n\u003Cp>An Investment Policy Statement is essential for anyone engaging in the management of investments, whether for individual portfolios, corporate funds, or institutional investors. It is designed to define clear objectives, establish a benchmark for performance, and specify the risk management protocols to be followed. The IPS ensures that investment decisions remain aligned with the overarching financial goals, despite changing market conditions or personal circumstances.\u003C/p>\n\u003Ch5>Key Components of an Investment Policy Statement\u003C/h5>\n\u003Cul>\n\u003Cli>\u003Cstrong>Statement of Purpose\u003C/strong> - Articulates the primary goals and objectives of the investment strategy.\u003C/li>\n\u003Cli>\u003Cstrong>Statement of Goals\u003C/strong> - Details specific financial goals, such as retirement funding, wealth accumulation, or funding educational expenses.\u003C/li>\n\u003Cli>\u003Cstrong>Risk Tolerance Level\u003C/strong> - Defines the acceptable levels of risk and the investor’s capacity to absorb financial losses.\u003C/li>\n\u003Cli>\u003Cstrong>Investment Guidelines\u003C/strong> - Specifies the types of investments to be included in the portfolio and any restrictions on asset classes or security types.\u003C/li>\n\u003Cli>\u003Cstrong>Performance Benchmarks\u003C/strong> - Establishes criteria for measuring the performance of the portfolio against recognized standards.\u003C/li>\n\u003Cli>\u003Cstrong>Monitoring and Reviewing\u003C/strong> - Outlines the frequency and methods for reviewing the investment portfolio and its management.\u003C/li>\n\u003C/ul>\n\u003Ch5>Structuring an Investment Policy Statement\u003C/h5>\n\u003Cp>Creating an effective Investment Policy Statement requires meticulous consideration to ensure it is comprehensive and tailored to the investor’s needs. The statement should be:\u003C/p>\n\u003Cul>\n\u003Cli>\u003Cstrong>Client-Centric\u003C/strong> - Focuses on the client’s specific financial needs, goals, and circumstances.\u003C/li>\n\u003Cli>\u003Cstrong>Strategic\u003C/strong> - Provides a clear, actionable investment strategy that guides day-to-day decision-making.\u003C/li>\n\u003Cli>\u003Cstrong>Dynamic\u003C/strong> - Allows for adjustments in response to changes in the client’s financial situation or shifts in market conditions.\u003C/li>\n\u003C/ul>\n\u003Ch5>Supporting Documents for Implementing an Investment Policy Statement\u003C/h5>\n\u003Cp>To enhance the effectiveness of an Investment Policy Statement, consider integrating related financial planning documents:\u003C/p>\n\u003Cul>\n\u003Cli>\u003Cstrong>\u003Ca href=\"https://www.business-in-a-box.com/template/financial-report-D12767/\">Financial Report\u003C/a>\u003C/strong> - Provides a broader overview of the client’s financial situation, including income, debt, and other liabilities.\u003C/li>\n\u003Cli>\u003Cstrong>\u003Ca href=\"https://www.business-in-a-box.com/template/risk-management-plan-D13391/\">Risk Management Plan\u003C/a>\u003C/strong> - Details strategies for mitigating financial risks associated with investments.\u003C/li>\n\u003Cli>\u003Cstrong>\u003Ca href=\"https://www.business-in-a-box.com/template/investment-plan-D13228/\">Investment Plan\u003C/a>\u003C/strong> - Aligns investment strategies with estate planning goals to ensure a coherent approach to asset management and legacy planning.\u003C/li>\n\u003C/ul>\n\u003Ch5>Why Use Business in a Box to Create an Investment Policy Statement?\u003C/h5>\n\u003Cp>Employing Business in a Box to draft your Investment Policy Statement offers:\u003C/p>\n\u003Cul>\n\u003Cli>\u003Cstrong>Professionally Designed Templates\u003C/strong> - Ensures your statement is precise, current, and compliant with financial regulations.\u003C/li>\n\u003Cli>\u003Cstrong>Customizability\u003C/strong> - Enables modifications to reflect the unique financial situation and objectives of the client.\u003C/li>\n\u003Cli>\u003Cstrong>Efficiency\u003C/strong> - Accelerates the document preparation process, facilitating prompt finalization and implementation.\u003C/li>\n\u003Cli>\u003Cstrong>Comprehensive Toolkit\u003C/strong> - Provides additional resources supporting a wide range of financial management needs.\u003C/li>\n\u003C/ul>\n\u003Cp>Utilizing Business in a Box for your Investment Policy Statement lays out a professional and meticulous foundation for managing investments. It is an essential document that ensures strategic alignment with the client’s financial goals, providing a clear and consistent roadmap for investment decisions and enhancing financial security.\u003C/p>\n\u003Cp>Updated in April 2024\u003C/p>\n",[28,17,20],{"label":29,"url":30},"Templates","/templates/",[32,33,36],{"label":29,"url":30},{"label":34,"url":35},"Finance & Accounting","/templates/finance-accounting/",{"label":37,"url":38},"Equity & Investment","/templates/equity-and-investment/",[40,44,48,52,57,61,65,69,73,77,81,85,89,106,122,136,154,168],{"label":41,"url":42,"thumb":43,"extension":10},"Non-Profit Investment Policy","/template/non-profit-investment-policy-D14019","https://templates.business-in-a-box.com/imgs/250px/14019.png",{"label":45,"url":46,"thumb":47,"extension":10},"Training Investment and Reimbursement Policy","/template/training-investment-and-reimbursement-policy-D13794","https://templates.business-in-a-box.com/imgs/250px/13794.png",{"label":49,"url":50,"thumb":51,"extension":10},"Statement and Policy Prohibiting Illegal Discrimination","/template/statement-and-policy-prohibiting-illegal-discrimination-D734","https://templates.business-in-a-box.com/imgs/250px/734.png",{"label":53,"url":54,"thumb":55,"extension":56},"Investment Calculator","/template/investment-calculator-D374","https://templates.business-in-a-box.com/imgs/250px/374.png","xls",{"label":58,"url":59,"thumb":60,"extension":10},"Investment Agreement","/template/investment-agreement-D12831","https://templates.business-in-a-box.com/imgs/250px/12831.png",{"label":62,"url":63,"thumb":64,"extension":56},"Expense Statement","/template/expense-statement-D311","https://templates.business-in-a-box.com/imgs/250px/311.png",{"label":66,"url":67,"thumb":68,"extension":10},"Investment Plan","/template/investment-plan-D13228","https://templates.business-in-a-box.com/imgs/250px/13228.png",{"label":70,"url":71,"thumb":72,"extension":56},"Income Statement","/template/income-statement-D363","https://templates.business-in-a-box.com/imgs/250px/363.png",{"label":74,"url":75,"thumb":76,"extension":10},"LLC Investment Agreement","/template/llc-investment-agreement-D12832","https://templates.business-in-a-box.com/imgs/250px/12832.png",{"label":78,"url":79,"thumb":80,"extension":56},"Profit & Loss Statement","/template/profit-&-loss-statement-D11895","https://templates.business-in-a-box.com/imgs/250px/11895.png",{"label":82,"url":83,"thumb":84,"extension":10},"Investment Proposal","/template/investment-proposal-D13992","https://templates.business-in-a-box.com/imgs/250px/13992.png",{"label":86,"url":87,"thumb":88,"extension":10},"Mission Statement","/template/mission-statement-D12671","https://templates.business-in-a-box.com/imgs/250px/12671.png",{"description":90,"descriptionCustom":6,"label":91,"pages":92,"size":9,"extension":10,"preview":93,"thumb":94,"svgFrame":95,"seoMetadata":96,"parents":98,"keywords":97,"url":105},"[YOUR COMPANY NAME] SIMPLE STRATEGIC PLANNING TEMPLATE This template provides a structured framework for creating a Strategic Plan. However, remember that the specific content and level of detail should align with the complexity and needs of your organization. The strategic planning process is an ongoing one, and regular reviews and adjustments are essential for its success. EXECUTIVE SUMMARY Vision Statement: [Your organization's aspirational vision] Mission Statement: [Your organization's core purpose] Key Goals: [Briefly list the primary long-term goals] SITUATION ANALYSIS SWOT Analysis: Strengths: [Specify your organization's strengths] Weaknesses: [Specify your organization's weaknesses] Opportunities: [Specify your organization's opportunities] Threats: [Specify your organization's threats] CORE VALUES List the core values that guide decision-making and behavior within the organization. LONG-TERM GOALS Define specific, measurable, and time-bound goals for the organization. Goal 1: [Specify] Goal 2: [Specify] STRATEGIC OBJECTIVES Break down the long-term goals into strategic objectives. Objective 1:","Strategic Planning Template","3","https://templates.business-in-a-box.com/imgs/1000px/strategic-planning-template-D13857.png","https://templates.business-in-a-box.com/imgs/250px/13857.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#13857.xml",{"title":97,"description":6},"strategic planning template",[99,102],{"label":100,"url":101},"Business Plan Kit","business-plan-kit",{"label":103,"url":104},"Management","business-management","/template/strategic-planning-template-D13857",{"description":107,"descriptionCustom":6,"label":108,"pages":109,"size":9,"extension":56,"preview":110,"thumb":111,"svgFrame":112,"seoMetadata":113,"parents":115,"keywords":114,"url":121},"Indicates the future financial performance of a business for a period of twelve months.","Financial Projections_12 Months","1","https://templates.business-in-a-box.com/imgs/1000px/financial-projections_12-months-D360.png","https://templates.business-in-a-box.com/imgs/250px/360.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#360.xml",{"title":114,"description":6},"financial projections_12 months",[116,118],{"label":34,"url":117},"finance-accounting",{"label":119,"url":120},"Financial Statements","financial-statements","/template/financial-projections_12-months-D360",{"description":123,"descriptionCustom":6,"label":124,"pages":92,"size":9,"extension":10,"preview":125,"thumb":126,"svgFrame":127,"seoMetadata":128,"parents":130,"keywords":129,"url":135},"Budget Proposal Your business slogan here. Prepared By: [YOUR NAME] [YOUR JOB TITLE] Phone 555.555.5555 Email info@yourbusiness.com www.yourbusiness.com Table of Contents Executive Summary 5 1. Introduction 6 1.1 Overview 6 1.2 Project Description 6 2. Project Details 7 2.1 Project 1: [Project Name] 7 2.1.1 Project Overview 7 2.1.2 Project Timeline 7 2.1.3 Resource Requirements 7 2.2 Project 2: [Project Name] 7 2.2.1 Project Overview 7 2.2.2 Project Timeline 7 2.2.3 Resource Requirements 8 2.3 Project 3: [Project Name] 8 2.3.1 Project Overview 8 2.3.2 Project Timeline 8 2.3.3 Resource Requirements 8 3. Budget Overview 9 3.1 Total Budget Allocation 9 3.1.1 Summary of Total Costs 9 3.1.2 Breakdown by Categories 9 3.2 Project Allocation 9 3.2.1 Detailed Project Budgets 9 4. Justification and Rationale 10 4.1 Alignment with Goals 10 4.1.1 Project-Goal Alignment 10 4.2 Cost Justification 10 4.2.1 Basis for Cost Estimation 10 4.3 Risk Assessment 10 4.3.1 Identified Risks 10 4.3.2 Mitigation Strategies 10 5. Implementation Plan 11 5.1 Budget Management 11 5.1.1 Oversight and Responsibility 11 5.1.2 Tracking Mechanisms 11 5.2 Contingency Plans 11 5.2.1 Deviation Strategies 11 5.2.2 Unforeseen Circumstances 11 6. Appendices 12 Statement of Confidentiality & Non-Disclosure This document contains proprietary and confidential information. All data submitted to [RECEIVING PARTY] is provided in reliance upon its consent not to use or disclose any information contained herein except in the context of its business dealings with [YOUR COMPANY NAME]. The recipient of this document agrees to inform its present and future employees and partners who view or have access to the document's content of its confidential nature. The recipient agrees to instruct each employee that they must not disclose any information concerning this document to others except to the extent that such matters are generally known to, and are available for use by, the public. The recipient also agrees not to duplicate or distribute or permit others to duplicate or distribute any material contained herein without [YOUR COMPANY NAME]'s express written consent. [YOUR COMPANY NAME] retains all title, ownership and intellectual property rights to the material and trademarks contained herein, including all supporting documentation, files, marketing material, and multimedia. BY ACCEPTANCE OF THIS DOCUMENT, THE RECIPIENT AGREES TO BE BOUND BY THE AFOREMENTIONED STATEMENT. Executive Summary The proposed budget outlines a strategic financial plan aimed at achieving the objectives and goals set forth by [COMPANY NAME]. This comprehensive budget reflects a meticulous analysis of the current financial landscape, taking into account revenue streams, operational expenses, and investment priorities. The overarching goal is to ensure fiscal responsibility and sustainability while aligning financial resources with organizational priorities. The Budget Proposal emphasizes accountability and transparency in financial management. It incorporates mechanisms for regular monitoring and reporting to provide stakeholders with a clear understanding of financial performance against established benchmarks. By fostering a culture of financial responsibility and accountability, the proposed budget sets the foundation for prudent fiscal management and strategic growth. It emphasizes the organization's commitment to sound fiscal practices, strategic investments, and the attainment of operational excellence. Through this budgetary framework, the organization aims to navigate the evolving economic landscape while pursuing its overarching mission and vision. 1. Introduction 1.1 Overview This Budget Proposal serves as a comprehensive financial plan for [COMPANY NAME], delineating its monetary strategy over [SPECIFIED PERIOD]. This crucial document functions as a roadmap, guiding [COMPANY NAME]'s financial decisions and actions in alignment with its overarching objectives.","Budget Proposal","https://templates.business-in-a-box.com/imgs/1000px/budget-proposal-D13607.png","https://templates.business-in-a-box.com/imgs/250px/13607.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#13607.xml",{"title":129,"description":6},"budget proposal",[131,133],{"label":18,"url":132},"human-resources",{"label":21,"url":134},"company-policies","/template/budget-proposal-D13607",{"description":137,"descriptionCustom":6,"label":138,"pages":109,"size":139,"extension":10,"preview":140,"thumb":141,"svgFrame":142,"seoMetadata":143,"parents":144,"keywords":152,"url":153},"BOARD RESOLUTION OF [YOUR COMPANY NAME] ADOPTED ON [DATE] The undersigned, being all the directors of [YOUR COMPANY NAME], hereby sign the following amended resolutions: RESOLVED THAT: The financial statements of the company for the fiscal year ended [Month and day], prepared by [Accountant's name], Chartered Accountants, under their comments dated [Date], are approved which approval shall be evidenced by signature of the balance sheet. OR The financial statements of the company for the fiscal year ended [Month and day], prepared by [Auditors' names], under their audit report dated [Date], are approved, which approval shall be evidenced by signature of the balance sheet. The approved financial statements be placed before the annual meeting of shareholders of the company. [Accountants] are appointed the accountants of the company for the current fiscal year. By-Law No. [Number] is passed as a by-law of the company to be placed before a meeting of shareholders of the company for confirmation. ","Board Resolution",34,"https://templates.business-in-a-box.com/imgs/1000px/board-resolution-D78.png","https://templates.business-in-a-box.com/imgs/250px/78.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#78.xml",{"title":6,"description":6},[145,146,149],{"label":100,"url":101},{"label":147,"url":148},"Board of Directors","board-of-directors",{"label":150,"url":151},"Board Resolutions","business-resolutions","board resolution","/template/board-resolution-D78",{"description":155,"descriptionCustom":6,"label":156,"pages":157,"size":158,"extension":10,"preview":159,"thumb":160,"svgFrame":161,"seoMetadata":162,"parents":163,"keywords":166,"url":167},"Confidentiality Agreement The undersigned reader acknowledges that the information provided by [YOUR COMPANY NAME] in this business plan is confidential; therefore, reader agrees not to disclose it without the express written permission of [YOUR COMPANY NAME] It is acknowledged by reader that information to be furnished in this business plan is in all respects confidential in nature, other than information which is in the public domain through other means and that any disclosure or use of same by reader may cause serious harm or damage to [YOUR COMPANY NAME] Upon request, this document is to be immediately returned to [COMPANY NAME] ___________________ Signature ___________________ Name (typed or printed) ___________________ Date This is a business plan. It does not imply an offering of securities. 1.0 Executive Summary 1 Chart: Highlights 2 1.1 Objectives 3 1.2 Mission 3 1.3 Keys to Success 3 2.0 Organization Summary 4 2.1 Legal Entity 4 2.2 Start-up Summary 5 Table: Start-up 5 Chart: Start-up 5 3.0 Products 6 4.0 Market Analysis Summary 7 4.1 Market Segmentation 7 Table: Market Analysis 8 Chart: Market Analysis (Pie) 8 4.2 Target Market Segment Strategy 9 4.3 Service Providers Analysis 9 4.3.1 Alternatives and Usage Patterns 10 5.0 Web Plan Summary 11 5.1 Website Marketing Strategy 11 5.2 Development Requirements 11 6.0 Strategy and Implementation Summary 12 6.1 SWOT Analysis 12 6.1.1 Strengths 13 6.1.2 Weaknesses 13 6.1.3 Opportunities 13 6.1.4 Threats 13 6.2 Competitive Edge 14 6.3 Marketing Strategy 14 6.4 Fundraising Strategy 14 6.4.1 Funding Forecast 15 Table: Funding Forecast 16 Chart: Funding Monthly 16 Chart: Funding by Year 17 6.5 Milestones 17 Table: Milestones 18 Chart: Milestones 18 7.0 Management Summary 19 7.1 Personnel Plan 19 Table: Personnel 19 8.0 Financial Plan 19 8.1 Start-up Funding 21 Table: Start-up Funding 21 8.2 Important Assumptions 22 8.3 Break-even Analysis 22 Table: Break-even Analysis 22 Chart: Break-even Analysis 22 8.4 Projected Surplus or Deficit 23 Table: Surplus and Deficit 23 Chart: Surplus Monthly 24 Chart: Surplus Yearly 24 Chart: Gross Surplus Monthly 25 Chart: Gross Surplus Yearly 25 8.5 Projected Cash Flow 26 Table: Cash Flow 26 Chart: Cash 27 8.6 Projected Balance Sheet 28 Table: Balance Sheet 28 8.7 Standard Ratios 29 Table: Ratios 29 Table: Funding Forecast 1 Table: Personnel 2 Table: Surplus and Deficit 3 Table: Cash Flow 4 Table: Balance Sheet 5 1.0 Executive Summary [YOUR COMPANY NAME] [YOUR NAME] [YOUR ADDRESS] [YOUR CITY], [YOUR STATE/PROVINCE], [YOUR ZIP/POSTAL CODE] Phone: [YOUR PHONE NUMBER] Fax: [YORU FAX NUMBER] Email: [YOUREMAIL@YOURCOMPANY.COM] Website: [YOUR WEBSITE ADDRESS] Introduction [YOUR COMPANY NAME] is a 501(c)(3) tax-exempt non-profit organization formed in 2010. [YOUR COMPANY NAME] was the vision of [NAME]. The Foundation was formed to purchase distressed homes that might otherwise have been destroyed and hiring unskilled workers to remodel the homes while teaching the workers a new skill. Location [YOUR COMPANY NAME] was formed on X/XX/XXXX in the State of Missouri and located at [YOUR ADDRESS] [YOUR CITY], [YOUR STATE/PROVINCE], [YOUR ZIP/POSTAL CODE]. The Company The Foundation will sell or rent renovated homes to people who are trying to re-establish their lives with assistance with down payment money or reduced rents. [YOUR COMPANY NAME] sees this as \"paying it forward\" by helping to beautify the community; giving people a new career to help them financially and helping those who can't afford to buy or rent a home. Our Services [YOUR COMPANY NAME] specializes in identifying, investigating and purchasing distressed and foreclosed residential homes in [YOUR CITY]. Such properties will be readied for resale and sold in a short period of time, usually within eight months. The Foundation will work with the local community organizations to identify families in need with the Foundation subsidizing up to 50% of the down payment needed to purchase a renovated home. Additionally, the Foundation will also rent to families in need at a subsidized rate. The Market [YOUR COMPANY NAME] is located in [YOUR CITY]. The Company will purchase distressed properties, renovate and resell or rent in [YOUR CITY]. Financial Considerations The current financial plan for [YOUR COMPANY NAME] is to obtain grant funding in the amount of $1,200,000. The grant will be used to purchase distressed homes, renovate homes, purchase office and construction equipment, purchase a work van and pickup, hire employees, subsidize down payments for families and working capital for the first year of operations. The major focus for grant funding is as follows: 1. Non-Profit organization 2. Purchase and renovate distressed homes to beautify and upgrade communities 3. Subsidize down payments and rents for families in need due to economic conditions 4. Renovate homes using \"green\" and pre-used materials 5. Renovate homes using energy savings applications 6. Employ and train unskilled workers during renovation Chart: Highlights 1.1 Objectives [YOUR COMPANY NAME] has the following objectives: 1. Revitalize neighborhoods and increase property values by performing renovations on distressed properties 2. Perform renovations with \"green\" and pre-used materials in an effort to minimize future utility costs and reduce the use of our natural resources 3. Assist local communities and needy individuals with proceeds obtained from grant funding and the resale of the distressed properties 4. Build an organization which is community oriented and is respected by our industry 5. Hire employees; the Foundation will look to hire veterans, minorities and the unemployed 1.2 Mission The mission of [YOUR COMPANY NAME] is to help people and families to re-establish their lives and give security of a home to their children. In carrying out our mission the Foundation will purchase distressed homes and renovate these homes using recycled materials. We strive to be environmentally friendly by doing our own Lead Based Paint Testing and Asbestos Testing. Additionally, all homes will be renovated with energy saving \"green materials\" and applications. The Foundation will provide jobs for ambitious people who because of the economy have found themselves without resources. [YOUR COMPANY NAME] creates jobs and housing that will help the economy recover and grow. 1.3 Keys to Success [YOUR COMPANY NAME] keys to success are: 1. Highly experienced and community passionate Director's of [COMPANY NAME] 2. Lack of competition in the renovation market for our area 3. Inordinate amount of distressed properties available for purchase 4. Hiring and training our construction crews 5. Energy savings and environmental issues in renovating homes 2.0 Organization Summary [YOUR COMPANY NAME] [YOUR NAME] [YOUR ADDRESS] [YOUR CITY], [YOUR STATE/PROVINCE], [YOUR ZIP/POSTAL CODE] Phone: [YOUR PHONE NUMBER] Fax: [YORU FAX NUMBER] Email: [YOUREMAIL@YOURCOMPANY.COM] Website: [YOUR WEBSITE ADDRESS] [YOUR COMPANY NAME] is a 501(c)(3) tax-exempt non-profit organization formed in 2010. [YOUR COMPANY NAME] was the vision of [NAME]. [NAME] has been in construction for over 40 years and wanted to help people in [YOUR CITY] who have been affected by the economic downturn. [YOUR COMPANY NAME] was formed to purchase distressed homes that might otherwise have been destroyed and hiring unskilled workers to remodel the homes while teaching the workers a new skill. The Foundation will then sell or rent these homes to families who are trying to re-establish their lives with assistance with down payment money or reduced rents. [YOUR COMPANY NAME] sees this as \"paying it forward\" by helping to beautify the community; giving people a new career to help them financially and helping those who can't afford to buy or rent a home. 2","Non-profit Organization Business Plan","39",993,"https://templates.business-in-a-box.com/imgs/1000px/non-profit-organization-business-plan-D12024.png","https://templates.business-in-a-box.com/imgs/250px/12024.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#12024.xml",{"title":6,"description":6},[164,165],{"label":100,"url":101},{"label":100,"url":101},"non profit organization business plan","/template/non-profit-organization-business-plan-D12024",{"description":169,"descriptionCustom":6,"label":169,"pages":109,"size":9,"extension":56,"preview":170,"thumb":171,"svgFrame":172,"seoMetadata":173,"parents":175,"keywords":174,"url":178},"SWOT Analysis","https://templates.business-in-a-box.com/imgs/1000px/swot-analysis-D12676.png","https://templates.business-in-a-box.com/imgs/250px/12676.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#12676.xml",{"title":174,"description":6},"swot analysis",[176,177],{"label":100,"url":101},{"label":103,"url":104},"/template/swot-analysis-D12676",true,{"seo":181,"reviewer":193,"quick_facts":197,"at_a_glance":200,"personas":204,"variants":229,"glossary":253,"sections":290,"how_to_fill":341,"common_mistakes":382,"faqs":407,"industries":435,"comparisons":452,"diy_vs_pro":468,"educational_modules":481,"related_template_ids_curated":484,"schema":494,"classification":495},{"meta_title":182,"meta_description":183,"primary_keyword":184,"secondary_keywords":185},"Investment Policy Statement Template (Free Word)","Free Investment Policy Statement template for organizations managing endowments, pension funds, or corporate portfolios. Used in 190+ countries. Free Word and PDF download.","investment policy statement template",[15,186,187,188,189,190,191,192],"ips template","investment policy statement example","investment policy statement nonprofit","endowment investment policy statement","portfolio investment policy template","investment policy statement word","investment guidelines template",{"name":194,"credential":195,"reviewed_date":196},"Bruno Goulet","CEO, Business in a Box","2026-05-02",{"difficulty":198,"legal_review_recommended":199,"signature_required":199},"advanced",false,{"what_it_is":201,"when_you_need_it":202,"whats_inside":203},"An Investment Policy Statement (IPS) is a governing document that defines how an organization's investment portfolio will be managed — covering objectives, risk tolerance, asset allocation targets, permitted asset classes, performance benchmarks, and oversight responsibilities. This free Word download gives boards, investment committees, and finance teams a structured starting point they can edit online and export as PDF.\n","Use it when establishing or formalizing oversight of any investment portfolio — endowment, pension reserve, operating reserve, or corporate treasury. It is also required by many grant-making foundations, auditors, and fiduciaries as evidence of prudent investment governance.\n","Purpose and scope, organizational roles and responsibilities, investment objectives, risk tolerance, asset allocation policy with target ranges, permitted and prohibited investments, manager selection criteria, performance measurement benchmarks, and rebalancing and review procedures.\n",[205,209,213,217,221,225],{"title":206,"use_case":207,"icon_asset_id":208},"Nonprofit board members","Documenting fiduciary governance over an endowment or operating reserve","persona-nonprofit-exec",{"title":210,"use_case":211,"icon_asset_id":212},"Foundation investment committees","Setting formal asset allocation policy and manager selection criteria","persona-cfo",{"title":214,"use_case":215,"icon_asset_id":216},"Corporate treasurers","Governing corporate cash and short-term investment portfolios","persona-corporate-treasurer",{"title":218,"use_case":219,"icon_asset_id":220},"Pension plan administrators","Meeting fiduciary duty requirements for defined-benefit or defined-contribution plans","persona-operations-director",{"title":222,"use_case":223,"icon_asset_id":224},"Family office managers","Formalizing multi-generational wealth management guidelines across asset classes","persona-small-business-owner",{"title":226,"use_case":227,"icon_asset_id":228},"University finance officers","Governing endowment spending policy and long-term asset allocation targets","persona-student-entrepreneur",[230,234,238,241,244,247,250],{"situation":231,"recommended_template":232,"slug":233},"Governing a nonprofit endowment with a long-term spending policy","Nonprofit Endowment Investment Policy Statement","investment-policy-statement-D12883",{"situation":235,"recommended_template":236,"slug":237},"Managing a corporate operating cash reserve with capital preservation goals","Corporate Treasury Investment Policy","corporate-governance-policy-D13943",{"situation":239,"recommended_template":240,"slug":233},"Overseeing a defined-benefit pension fund with actuarial liability matching","Pension Fund Investment Policy Statement",{"situation":242,"recommended_template":243,"slug":233},"Setting guidelines for a donor-advised fund or community foundation","Foundation Investment Policy Statement",{"situation":245,"recommended_template":246,"slug":233},"Formalizing investment oversight for a family office or private trust","Family Office Investment Policy Statement",{"situation":248,"recommended_template":249,"slug":233},"Establishing guidelines for an individual retirement account or personal portfolio","Personal Investment Policy Statement",{"situation":251,"recommended_template":252,"slug":233},"Documenting ESG or responsible investing criteria alongside standard guidelines","ESG Investment Policy Statement",[254,257,260,263,266,269,272,275,278,281,284,287],{"term":255,"definition":256},"Asset Allocation","The distribution of a portfolio across major asset classes — such as equities, fixed income, real assets, and cash — expressed as target percentages with acceptable ranges.",{"term":258,"definition":259},"Investment Policy Statement (IPS)","A formal governing document that records an organization's investment objectives, constraints, permitted strategies, and oversight procedures.",{"term":261,"definition":262},"Rebalancing","The process of buying or selling assets to bring portfolio weights back within the target ranges defined in the IPS after market movements cause drift.",{"term":264,"definition":265},"Spending Policy","A rule — often expressed as a fixed percentage of a trailing multi-year average portfolio value — that determines how much of an endowment or fund can be distributed each year.",{"term":267,"definition":268},"Benchmark","A market index or blended index used to measure the investment manager's performance relative to a comparable passive alternative.",{"term":270,"definition":271},"Fiduciary Duty","The legal and ethical obligation to act in the best financial interests of the beneficiaries of a fund, prioritizing their interests above all others.",{"term":273,"definition":274},"Investment Horizon","The time period over which investment returns are expected to be generated, which directly shapes risk tolerance and appropriate asset class exposure.",{"term":276,"definition":277},"Liquidity Requirement","The minimum portion of a portfolio that must be held in cash or near-cash instruments to meet expected near-term spending, operational, or withdrawal needs.",{"term":279,"definition":280},"Manager Due Diligence","The process of evaluating an investment manager's track record, fee structure, investment process, operational controls, and team stability before appointment.",{"term":282,"definition":283},"Policy Portfolio","The long-term target asset mix defined in an IPS that the committee believes will best achieve the fund's objectives over the full investment horizon.",{"term":285,"definition":286},"Risk Tolerance","The maximum level of portfolio volatility or drawdown an organization is willing to accept, given its spending needs, time horizon, and governance constraints.",{"term":288,"definition":289},"Prohibited Investments","Asset classes, instruments, or strategies explicitly excluded from the portfolio — such as leveraged derivatives, speculative commodities, or tobacco equities — based on risk, ethical, or mission-alignment grounds.",[291,296,301,306,311,316,321,326,331,336],{"name":292,"plain_english":293,"sample_language":294,"common_mistake":295},"Purpose and scope","States why the IPS exists, which portfolio or fund it governs, and who is bound by its terms.","This Investment Policy Statement governs the investment of [ORGANIZATION NAME]'s [FUND NAME], with assets of approximately $[AMOUNT] as of [DATE]. It applies to the Investment Committee, staff, and any external investment managers engaged by the organization.","Scoping the IPS too broadly to cover funds with very different objectives — a pension reserve and an operating cash account should have separate policy statements because their liquidity needs and risk tolerances differ fundamentally.",{"name":297,"plain_english":298,"sample_language":299,"common_mistake":300},"Roles and responsibilities","Defines who has authority over investment decisions — the board, investment committee, staff, and external advisors — and what each party is empowered to do.","The Board of Directors retains ultimate fiduciary responsibility. The Investment Committee is delegated authority to implement this policy and select managers within approved asset class ranges. The [TITLE] is responsible for day-to-day cash management and reporting.","Leaving delegation boundaries vague, so staff and committee members are unsure who can authorize a manager change or a tactical allocation shift without a full board vote.",{"name":302,"plain_english":303,"sample_language":304,"common_mistake":305},"Investment objectives","Articulates the fund's primary financial goals — typically expressed as a real or nominal return target, preservation of capital, or support of a defined annual spending rate.","The primary objective of the [FUND NAME] is to earn a net annualized total return of at least [X]% over rolling 5-year periods, net of fees and inflation, sufficient to support an annual spending distribution of [X]% while preserving the real purchasing power of the corpus.","Setting a return objective without linking it to a spending rate and inflation assumption, making it impossible to determine whether the target is achievable within the stated risk tolerance.",{"name":307,"plain_english":308,"sample_language":309,"common_mistake":310},"Risk tolerance","Defines the level of portfolio volatility and maximum drawdown the organization is willing to accept, and any constraints that limit risk-taking — such as minimum liquidity ratios or credit quality floors.","The Committee accepts that long-term return objectives require exposure to market volatility. The portfolio shall be managed to limit the probability of a calendar-year loss exceeding [X]% to no more than [X]% under normal market conditions, as estimated by [METHODOLOGY].","Stating risk tolerance only in qualitative terms ('moderate risk') without any quantitative constraint — leaving managers and committee members unable to test whether the portfolio is within policy.",{"name":312,"plain_english":313,"sample_language":314,"common_mistake":315},"Asset allocation policy","Specifies target percentages and acceptable ranges for each asset class, which together constitute the policy portfolio.","Target allocation: Domestic Equities [X]% (range [X–X]%), International Equities [X]% (range [X–X]%), Fixed Income [X]% (range [X–X]%), Real Assets [X]% (range [X–X]%), Cash and Equivalents [X]% (range [X–X]%). Total: 100%.","Setting ranges so wide — e.g., equities 20–80% — that the policy provides no real constraint on the portfolio manager, defeating the governance purpose of the IPS.",{"name":317,"plain_english":318,"sample_language":319,"common_mistake":320},"Permitted and prohibited investments","Lists the asset classes, instruments, and strategies that are allowed, and explicitly prohibits those that are not — removing ambiguity about what managers may and may not do.","Permitted: publicly traded equities, investment-grade and high-yield bonds, listed REITs, exchange-traded funds. Prohibited: unlisted derivatives for speculative purposes, direct commodity futures, leveraged exchange-traded products, investments in companies deriving more than [X]% of revenue from [EXCLUDED SECTOR].","Omitting a prohibited list and relying only on a permitted list — leaving managers free to interpret silence as permission for instruments that the committee never considered.",{"name":322,"plain_english":323,"sample_language":324,"common_mistake":325},"Manager selection and monitoring","Defines the criteria used to select external investment managers and the ongoing monitoring standards by which they are evaluated and retained or terminated.","Managers must demonstrate: a minimum [X]-year track record in the assigned asset class, AUM of at least $[X]M in the relevant strategy, total annual fees not exceeding [X]% of assets under management, and no material compliance findings in the prior [X] years. Performance is reviewed quarterly against the designated benchmark.","Defining selection criteria but no termination triggers — the committee then has no documented basis for replacing an underperforming manager without a contentious board debate.",{"name":327,"plain_english":328,"sample_language":329,"common_mistake":330},"Performance measurement and benchmarks","Identifies the benchmark index or blended benchmark for each asset class and the total portfolio, and specifies the evaluation period and minimum performance expectations.","The total portfolio benchmark is [X]% [EQUITY INDEX] / [X]% [FIXED INCOME INDEX], rebalanced annually. Individual manager performance is evaluated over rolling 3- and 5-year periods. Managers are expected to meet or exceed their designated benchmark net of fees over a full market cycle.","Assigning a benchmark that does not match the manager's actual investment universe — e.g., measuring a small-cap manager against the S&P 500 — producing meaningless relative performance data.",{"name":332,"plain_english":333,"sample_language":334,"common_mistake":335},"Rebalancing policy","Specifies when and how the portfolio will be brought back within policy ranges when market movements cause drift — either on a calendar schedule, when a threshold is breached, or both.","The portfolio shall be reviewed for rebalancing quarterly. Rebalancing is triggered when any asset class weight drifts more than [X] percentage points from its target. Rebalancing shall be executed within [X] business days of the trigger, subject to transaction cost considerations.","Setting a rebalancing trigger but no execution timeframe — during volatile markets, delayed rebalancing can expose the organization to significantly more risk than the policy intends.",{"name":337,"plain_english":338,"sample_language":339,"common_mistake":340},"Review and amendment procedures","States how often the IPS will be formally reviewed, who has authority to amend it, and what process governs changes.","The Investment Committee shall review this IPS at least annually, or following any material change in the organization's financial condition, spending needs, or investment objectives. Amendments require approval by a majority of the full Board of Directors and shall be documented in the board minutes.","Allowing the IPS to go unreviewed for multiple years — regulatory environments, market conditions, and organizational circumstances change in ways that can render original policy targets inappropriate or unachievable.",[342,347,352,357,362,367,372,377],{"step":343,"title":344,"description":345,"tip":346},1,"Identify the fund and confirm its governing structure","Enter the legal name of the organization, the specific fund or account the IPS governs, and the current approximate asset value. Confirm whether oversight sits with a full board, a delegated investment committee, or both.","If the organization has multiple pools of capital with different purposes — endowment, operating reserve, pension — draft a separate IPS for each. Combining them blurs objectives and creates conflicting constraints.",{"step":348,"title":349,"description":350,"tip":351},2,"Define investment objectives with a quantitative return target","Express the primary goal as a specific net return target linked to the spending rate and inflation assumption. For example: 'earn CPI plus 4.5% net of fees over rolling 5-year periods to support a 4% annual distribution.'","Work backward from the spending policy — calculate what gross return the portfolio must achieve to fund distributions and maintain real purchasing power, then test whether that target is consistent with the chosen asset allocation.",{"step":353,"title":354,"description":355,"tip":356},3,"Set quantitative risk constraints","Translate risk tolerance from a qualitative statement into at least one measurable constraint — maximum acceptable calendar-year drawdown, minimum credit quality for fixed income, or maximum portfolio standard deviation.","Run a simple historical stress test: would the proposed asset allocation have met the drawdown constraint during 2008–2009 and March 2020? If not, either tighten the allocation or revise the constraint.",{"step":358,"title":359,"description":360,"tip":361},4,"Complete the asset allocation table","Enter target percentages and acceptable minimum/maximum ranges for each asset class. Ensure all targets sum to 100% and that the ranges are narrow enough to provide real governance — a 10-percentage-point band is typically the maximum useful range for major asset classes.","Validate the proposed allocation against a mean-variance or historical return analysis to confirm it is internally consistent with the return objective and risk constraints already documented.",{"step":363,"title":364,"description":365,"tip":366},5,"List permitted and prohibited investments explicitly","Enumerate every asset class and instrument type the portfolio may hold, then separately list anything explicitly prohibited. Include any ESG or mission-alignment exclusions that apply to the organization.","Review the list with legal counsel if the organization has charitable status or ERISA obligations — certain instruments may be restricted by law regardless of what the IPS permits.",{"step":368,"title":369,"description":370,"tip":371},6,"Define manager selection criteria and termination triggers","Specify the minimum track record, AUM, fee ceiling, and compliance record required of any external manager. Add clear termination triggers — e.g., underperformance versus benchmark for four consecutive quarters, or a material compliance finding.","Including termination triggers makes future manager changes procedurally straightforward and protects the committee from accusations of arbitrary or politically motivated decisions.",{"step":373,"title":374,"description":375,"tip":376},7,"Assign benchmarks to each asset class","Select a specific, publicly available index for each asset class in the portfolio and a blended total-portfolio benchmark. Document the benchmark weights in the same section as the asset allocation targets.","Use the same index that passive alternatives in that asset class would track — this gives the committee a meaningful test of whether active management is adding value net of fees.",{"step":378,"title":379,"description":380,"tip":381},8,"Set the rebalancing trigger and review schedule","Specify both a calendar review date (quarterly is standard) and a drift threshold that triggers off-cycle rebalancing. Add the annual full IPS review date and the approval process for any amendments.","Automate the quarterly review reminder in the investment committee's calendar — an unreviewed IPS is a governance liability, not just an administrative oversight.",[383,387,391,395,399,403],{"mistake":384,"why_it_matters":385,"fix":386},"Qualitative risk tolerance with no measurable constraint","Labels like 'moderate' or 'balanced' mean different things to different managers and committee members, providing no basis for evaluating whether the portfolio is within policy.","Express risk tolerance as at least one hard number — maximum calendar-year loss, minimum credit rating, or maximum equity allocation — that can be tested against actual portfolio data.",{"mistake":388,"why_it_matters":389,"fix":390},"Return objective disconnected from the spending rate","A 7% gross return target sounds reasonable in isolation, but if the spending rate is 5% and inflation is 3%, the fund will erode in real terms — a fact that only becomes visible when the two numbers are modeled together.","Calculate the required net return as: spending rate + inflation + investment expenses, then confirm the policy portfolio has historically generated that return over full market cycles.",{"mistake":392,"why_it_matters":393,"fix":394},"Overly wide asset allocation ranges","Ranges of 20–80% for equities give managers unconstrained discretion and make the IPS a cosmetic document rather than a governance one — the committee cannot hold anyone accountable to a range that wide.","Limit ranges to 10–15 percentage points around the target for major asset classes and 5–8 percentage points for alternatives or less-liquid categories.",{"mistake":396,"why_it_matters":397,"fix":398},"No explicit termination criteria for investment managers","Without documented triggers, replacing an underperforming manager requires a subjective committee decision that can become contentious, legally exposed, or subject to personal relationships overriding fiduciary duty.","Add at least two objective termination criteria — e.g., three-year performance below benchmark by more than 150 basis points, or any material regulatory finding — so the decision process is procedurally defensible.",{"mistake":400,"why_it_matters":401,"fix":402},"IPS not reviewed after material organizational changes","A spending rate set when the endowment was $5M may be inappropriate at $25M; a risk tolerance established before a major program expansion may no longer match actual liquidity needs.","Require in the document itself that the IPS is reviewed following any change in spending rate, investment horizon, organizational size, or governing structure — not just on the annual calendar cycle.",{"mistake":404,"why_it_matters":405,"fix":406},"Combining multiple funds with different purposes in a single IPS","An operating reserve needs high liquidity and capital preservation; a long-term endowment can tolerate illiquidity and volatility. Governing both under one policy produces either unnecessary risk in the operating reserve or unnecessary conservatism in the endowment.","Draft a separate IPS for each distinct pool of capital, even if managed by the same committee, so that each fund's objectives, risk constraints, and permitted instruments reflect its actual purpose.",[408,411,414,417,420,423,426,429,432],{"question":409,"answer":410},"What is an Investment Policy Statement?","An Investment Policy Statement is a formal governing document that defines how an organization's investment portfolio will be managed. It records the fund's objectives, risk tolerance, permitted asset classes, target asset allocation, manager selection criteria, performance benchmarks, and review procedures. It serves as the primary accountability tool between the organization's governing body and any internal or external investment managers it employs.\n",{"question":412,"answer":413},"Who needs an Investment Policy Statement?","Any organization that holds and manages investment assets on behalf of others should have one — including nonprofits with endowments, pension fund trustees, community foundations, corporate treasuries, university finance offices, and family offices. Auditors, grant-making foundations, and regulatory bodies frequently request an IPS as evidence of prudent investment governance. Individual investors also benefit from a personal IPS to maintain discipline during market volatility.\n",{"question":415,"answer":416},"Is an Investment Policy Statement legally required?","For ERISA-governed retirement plans in the United States, an IPS is considered a best practice strongly implied by fiduciary duty, though not explicitly mandated by the statute. For nonprofit endowments governed by the Uniform Prudent Management of Institutional Funds Act (UPMIFA), a written investment policy is effectively required to demonstrate the prudence standard. Many grant-making foundations require grantees to produce an IPS as a condition of multi-year grants.\n",{"question":418,"answer":419},"What is the difference between an Investment Policy Statement and an investment strategy?","An investment strategy is a tactical approach to selecting securities or allocating capital — it describes what to buy and when. An IPS is the governing policy framework within which any strategy must operate — it defines the objectives, constraints, and oversight process regardless of which specific strategy is employed. The IPS does not change frequently; strategies within it may be adjusted by managers on an ongoing basis.\n",{"question":421,"answer":422},"How often should an Investment Policy Statement be reviewed?","At minimum, once per year as part of the investment committee's annual cycle. It should also be reviewed immediately following any material change in the organization's financial condition, spending rate, investment horizon, or governance structure. An IPS that has not been updated in more than two years is likely out of alignment with current circumstances and represents a fiduciary governance gap.\n",{"question":424,"answer":425},"What is a spending policy and how does it relate to an IPS?","A spending policy defines how much of an endowment or fund's value can be distributed each year — commonly set at 4–5% of a 12-quarter rolling average market value. The spending policy directly drives the return objective in the IPS: the portfolio must earn enough to fund distributions, cover investment expenses, and preserve the real value of the principal over time. The two policies should always be modeled together to confirm their combined assumptions are internally consistent.\n",{"question":427,"answer":428},"Can a nonprofit use a template Investment Policy Statement?","Yes. A well-structured template covers the core governance requirements applicable to most nonprofits — objectives, asset allocation, manager criteria, benchmarks, and review procedures. Engage a financial advisor or investment consultant to validate the asset allocation targets and benchmark selections against the organization's specific spending rate and liability profile. For endowments over $10M or those subject to specific regulatory requirements, a consultant review is worth the cost.\n",{"question":430,"answer":431},"What asset classes are typically permitted in an endowment IPS?","Most endowment IPS documents permit domestic and international equities, investment-grade and high-yield fixed income, real estate investment trusts, inflation-linked bonds, and cash equivalents. Larger endowments may also include alternative asset classes such as private equity, hedge funds, and infrastructure. Speculative instruments — leveraged derivatives, single-commodity futures, and cryptocurrencies — are typically prohibited unless the governing board explicitly approves them as part of a formal alternatives program.\n",{"question":433,"answer":434},"How detailed should the asset allocation section be?","Detailed enough to provide real governance constraints, but not so granular that routine tactical decisions require a full committee vote. Best practice is to specify a target percentage and an acceptable range for each major asset class — typically six to ten categories. Ranges of 8–12 percentage points around the target allow managers normal operational flexibility while giving the committee a clear trigger for review when the portfolio drifts materially.\n",[436,440,444,448],{"industry":437,"icon_asset_id":438,"specifics":439},"Nonprofit and philanthropy","industry-nonprofit","Endowment spending policies, UPMIFA prudence standard compliance, and mission-alignment exclusions are central governance concerns unique to charitable organizations.",{"industry":441,"icon_asset_id":442,"specifics":443},"Higher education","industry-education","University endowments balance long investment horizons and diversified alternative allocations with annual payout obligations to fund scholarships, research, and operations.",{"industry":445,"icon_asset_id":446,"specifics":447},"Financial services","industry-fintech","Registered investment advisers are required to document client investment policy in writing; pension fund trustees operate under ERISA fiduciary standards that make a formal IPS effectively mandatory.",{"industry":449,"icon_asset_id":450,"specifics":451},"Healthcare","industry-healthtech","Hospital and health system foundations maintain investment reserves to fund capital projects and operational contingencies, requiring IPS governance that balances capital preservation with long-term growth.",[453,457,461,465],{"vs":454,"vs_template_id":455,"summary":456},"Financial Plan","financial-projections_12-months-D360","A financial plan projects revenues, expenses, and cash flow for a business over a defined operating period. An Investment Policy Statement governs how a pool of investment assets is managed — it does not project business operations. Organizations need both: a financial plan to manage the business, and an IPS to govern the investment of any surplus, reserve, or endowment capital.",{"vs":458,"vs_template_id":459,"summary":460},"Strategic Plan","strategic-planning-template-D13857","A strategic plan defines an organization's goals, initiatives, and resource allocation over a 3–5 year horizon. An IPS is a narrower governance document focused exclusively on investment portfolio management. The two documents connect when the strategic plan identifies capital needs that the investment policy must fund through a spending policy.",{"vs":462,"vs_template_id":463,"summary":464},"Budget Template","annual-budget-D13228","A budget allocates expected revenues and expenses for an operating period — typically one fiscal year. An IPS governs the long-term management of a separate pool of invested capital and a multi-year return objective. The spending distribution from an endowment governed by an IPS may appear as a revenue line in the annual budget, linking the two documents.",{"vs":138,"vs_template_id":466,"summary":467},"board-resolution-D12832","A board resolution is a formal record of a specific decision taken by a governing board — such as approving an IPS or appointing an investment manager. An IPS is the substantive policy document itself. Best practice is to adopt the IPS by board resolution and store the two documents together so the chain of governance authority is clear.",{"use_template":469,"template_plus_review":473,"custom_drafted":477},{"best_for":470,"cost":471,"time":472},"Nonprofits and small organizations with investment portfolios under $5M needing a formal governance document","Free","3–6 hours to complete",{"best_for":474,"cost":475,"time":476},"Organizations with $5M–$50M in assets, pension trustees, or those subject to UPMIFA or ERISA requirements","$500–$2,500 for an investment consultant or fiduciary advisor review","1–2 weeks",{"best_for":478,"cost":479,"time":480},"Large endowments over $50M, multi-asset-class alternatives programs, or organizations with complex regulatory obligations","$3,000–$10,000 for a full investment policy advisory engagement","4–8 weeks",[482,483],"fiduciary-duty-explained","asset-allocation-101",[459,455,485,486,487,488,489,237,490,491,492,493],"budget-proposal-D13607","board-resolution-D78","non-profit-organization-business-plan-D12024","swot-analysis-D12676","risk-management-plan-D13391","financial-report-D12767","charter-agreement-D13440","city-treasurer-job-description-D11633","how-to-manage-cash-flow-D12585",{"emit_how_to":179,"emit_defined_term":179},{"primary_folder":117,"secondary_folder":496,"document_type":497,"industry":498,"business_stage":499,"tags":500,"confidence":506},"equity-and-investment","policy","general","all-stages",[501,502,503,504,505],"governance","risk-management","compliance","investment-policy","portfolio-management",0.92,"\u003Ch2>What is an Investment Policy Statement?\u003C/h2>\n\u003Cp>An \u003Cstrong>Investment Policy Statement (IPS)\u003C/strong> is a formal governing document that defines how an organization's investment portfolio will be managed — recording its objectives, risk tolerance, target asset allocation, permitted and prohibited instruments, manager selection criteria, performance benchmarks, and review procedures. It functions as the primary accountability framework between a governing board or investment committee and any internal staff or external managers responsible for day-to-day portfolio decisions. Unlike a financial plan or budget, which project operating results, an IPS governs a distinct pool of invested capital — an endowment, pension reserve, operating reserve, or corporate treasury — over a multi-year investment horizon.\u003C/p>\n\u003Ch2>Why You Need This Document\u003C/h2>\n\u003Cp>Without a written IPS, investment decisions default to informal judgment calls that are difficult to defend to auditors, grant-making foundations, or beneficiaries. Boards that lack a documented policy expose themselves to fiduciary liability when markets decline and stakeholders question whether the portfolio was managed prudently. Auditors of nonprofit endowments routinely cite the absence of an IPS as a material governance deficiency. Beyond compliance, an IPS enforces the discipline that protects long-term portfolios from short-term panic: when the committee has agreed in writing that a 30% equity drawdown is within acceptable bounds, it is far harder for individual members to force a poorly timed exit at the bottom of a market cycle. This template gives boards, investment committees, and finance teams a structured, ready-to-adapt foundation — cutting the drafting time from weeks to hours and ensuring no critical governance element is overlooked.\u003C/p>\n",1781185951184]