[{"data":1,"prerenderedAt":498},["ShallowReactive",2],{"document-non-profit-investment-policy-D14019":3},{"document":4,"label":24,"preview":11,"thumb":25,"description":5,"descriptionCustom":6,"apiDescription":5,"pages":8,"extension":10,"parents":26,"breadcrumb":30,"related":38,"customDescModule":179,"customdescription":6,"mdFm":180,"mdProseHtml":497},{"description":5,"descriptionCustom":6,"label":7,"pages":8,"size":9,"extension":10,"preview":11,"thumb":12,"svgFrame":13,"seoMetadata":14,"parents":16,"keywords":23},"NON-PROFIT INVESTMENT POLICY PURPOSE The purpose of this Investment Policy at [YOUR NON-PROFIT ORGANIZATION NAME] is to provide a clear framework for managing and overseeing the organization's investment portfolio. The Policy aims to ensure that the organization's assets are invested in a manner that is consistent with its mission, risk tolerance, and long-term financial objectives. This Policy also ensures that investment activities are conducted in compliance with applicable laws and ethical standards. SCOPE This Policy applies to all investment assets of [YOUR NON-PROFIT ORGANIZATION NAME], including but not limited to endowment funds, reserve funds, and any other funds designated for investment. The Policy governs the investment of these assets, as well as the roles and responsibilities of those involved in the investment process. INVESTMENT OBJECTIVES Preservation of Capital: The primary objective is to preserve the principal value of the investment portfolio while managing risk appropriately. Growth of Capital: The organization seeks to achieve a reasonable return on investments that will allow for growth in capital over time, taking into consideration the need to balance risk and return. Income Generation: The portfolio should generate income to support the organization's mission and operational needs, as specified by the Board of Directors. Liquidity: A portion of the portfolio should be maintained in liquid assets to meet the organization's short-term cash flow needs. INVESTMENT GUIDELINES Asset Allocation: The portfolio will be diversified across a range of asset classes to reduce risk. The general asset allocation guidelines are as follows: Equities: [PERCENTAGE RANGE]% Fixed Income: [PERCENTAGE RANGE]% Cash and Cash Equivalents: [PERCENTAGE RANGE]% Alternative Investments (if applicable): [PERCENTAGE RANGE]% Permitted Investments: The following types of investments are generally permitted under this Policy: Equities: Common stocks, preferred stocks, ETFs, and mutual funds. Fixed Income: Government bonds, corporate bonds, municipal bonds, and bond funds. Cash and Cash Equivalents: Money market funds, Treasury bills, and short-term certificates of deposit. Alternative Investments: Real estate, private equity, hedge funds, and other alternative investments (subject to Board approval). Prohibited Investments: The following types of investments are prohibited unless specifically approved by the Board of Directors: Speculative Investments: Derivatives, options, futures, and other high-risk speculative investments. Non-Diversified Assets: Investments that do not provide adequate diversification. Investments in Conflict with Mission: Any investments in companies or sectors that are in direct conflict with the organization's mission and values. Risk Tolerance: The organization's risk tolerance is [SPECIFY LEVEL OF RISK, e.g., conservative, moderate, aggressive]. Investment decisions should reflect this risk tolerance, balancing potential returns with the need to protect capital. ROLES AND RESPONSIBILITIES Board of Directors: The Board has overall responsibility for the organization's Investment Policy and strategy. The Board will review and approve the Investment Policy and any significant changes to the portfolio's asset allocation or investment strategy. Finance Committee: The Finance Committee, appointed by the Board, is responsible for overseeing the implementation of the Investment Policy",null,"Non-Profit Investment Policy","4",513,"doc","https://templates.business-in-a-box.com/imgs/1000px/non-profit-investment-policy-D14019.png","https://templates.business-in-a-box.com/imgs/250px/14019.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#14019.xml",{"title":15,"description":6},"non-profit investment policy",[17,20],{"label":18,"url":19},"Legal Agreements","/templates/business-legal-agreements/",{"label":21,"url":22},"Purchase & Sale Agreements","/templates/purchase-sale-agreement/","non profit investment policy","Non-Profit Investment Policy Template","https://templates.business-in-a-box.com/imgs/400px/14019.png",[27,17,20],{"label":28,"url":29},"Templates","/templates/",[31,32,35],{"label":28,"url":29},{"label":33,"url":34},"Finance & Accounting","/templates/finance-accounting/",{"label":36,"url":37},"Equity & Investment","/templates/equity-and-investment/",[39,43,47,51,55,59,63,67,71,75,79,83,87,104,121,137,150,163],{"label":40,"url":41,"thumb":42,"extension":10},"Non-Profit Gift Acceptance Policy","/template/non-profit-gift-acceptance-policy-D13367","https://templates.business-in-a-box.com/imgs/250px/13367.png",{"label":44,"url":45,"thumb":46,"extension":10},"Non-Profit Whistleblower Policy","/template/non-profit-whistleblower-policy-D14022","https://templates.business-in-a-box.com/imgs/250px/14022.png",{"label":48,"url":49,"thumb":50,"extension":10},"Investment Policy Statement","/template/investment-policy-statement-D12883","https://templates.business-in-a-box.com/imgs/250px/12883.png",{"label":52,"url":53,"thumb":54,"extension":10},"Non-Profit Partnership Agreement","/template/non-profit-partnership-agreement-D14023","https://templates.business-in-a-box.com/imgs/250px/14023.png",{"label":56,"url":57,"thumb":58,"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":60,"url":61,"thumb":62,"extension":10},"Non-Profit Code Of Conduct","/template/non-profit-code-of-conduct-D14018","https://templates.business-in-a-box.com/imgs/250px/14018.png",{"label":64,"url":65,"thumb":66,"extension":10},"Non-Profit Memorandum Of Understanding","/template/non-profit-memorandum-of-understanding-D14020","https://templates.business-in-a-box.com/imgs/250px/14020.png",{"label":68,"url":69,"thumb":70,"extension":10},"Non-Profit Board Resolution","/template/non-profit-board-resolution-D14017","https://templates.business-in-a-box.com/imgs/250px/14017.png",{"label":72,"url":73,"thumb":74,"extension":10},"Non-Profit Operating Agreement","/template/non-profit-operating-agreement-D14021","https://templates.business-in-a-box.com/imgs/250px/14021.png",{"label":76,"url":77,"thumb":78,"extension":10},"Volunteer Agreement For Non Profit","/template/volunteer-agreement-for-non-profit-D14080","https://templates.business-in-a-box.com/imgs/250px/14080.png",{"label":80,"url":81,"thumb":82,"extension":10},"Non-profit Organization Business Plan","/template/non-profit-organization-business-plan-D12024","https://templates.business-in-a-box.com/imgs/250px/12024.png",{"label":84,"url":85,"thumb":86,"extension":10},"Non-Retaliation Policy","/template/non-retaliation-policy-D13472","https://templates.business-in-a-box.com/imgs/250px/13472.png",{"description":88,"descriptionCustom":6,"label":89,"pages":90,"size":9,"extension":10,"preview":91,"thumb":92,"svgFrame":93,"seoMetadata":94,"parents":96,"keywords":95,"url":103},"[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":95,"description":6},"strategic planning template",[97,100],{"label":98,"url":99},"Business Plan Kit","business-plan-kit",{"label":101,"url":102},"Management","business-management","/template/strategic-planning-template-D13857",{"description":105,"descriptionCustom":6,"label":106,"pages":107,"size":9,"extension":108,"preview":109,"thumb":110,"svgFrame":111,"seoMetadata":112,"parents":114,"keywords":113,"url":120},"Indicates the future financial performance of a business for a period of twelve months.","Financial Projections_12 Months","1","xls","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":113,"description":6},"financial projections_12 months",[115,117],{"label":33,"url":116},"finance-accounting",{"label":118,"url":119},"Financial Statements","financial-statements","/template/financial-projections_12-months-D360",{"description":122,"descriptionCustom":6,"label":123,"pages":90,"size":9,"extension":10,"preview":124,"thumb":125,"svgFrame":126,"seoMetadata":127,"parents":129,"keywords":128,"url":136},"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":128,"description":6},"budget proposal",[130,133],{"label":131,"url":132},"Human Resources","human-resources",{"label":134,"url":135},"Company Policies","company-policies","/template/budget-proposal-D13607",{"description":138,"descriptionCustom":6,"label":138,"pages":107,"size":9,"extension":108,"preview":139,"thumb":140,"svgFrame":141,"seoMetadata":142,"parents":144,"keywords":143,"url":149},"Small Business Expense Report","https://templates.business-in-a-box.com/imgs/1000px/small-business-expense-report-D13396.png","https://templates.business-in-a-box.com/imgs/250px/13396.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#13396.xml",{"title":143,"description":6},"small business expense report",[145,148],{"label":146,"url":147},"Credit & Collection","credit-collection",{"label":146,"url":147},"/template/small-business-expense-report-D13396",{"description":151,"descriptionCustom":6,"label":152,"pages":153,"size":9,"extension":10,"preview":154,"thumb":155,"svgFrame":156,"seoMetadata":157,"parents":159,"keywords":158,"url":162},"[Year] Annual Report Your business slogan here. Address City Postal Code Phone 555.555.5555 Email info@yourbusiness.com www.yourbusiness.com 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. Table of Content Statement of Confidentiality & Non-Disclosure 2 Table of Content 3 1. Message to Shareholders 4 1.1 Strategic Overview 4 1.2 Financial Overview 4 1.3 Functional Overview 4 1.4 Future Prospects 4 2. Financial Summary 5 3. Financial Statements 6 3.1 Statement of Financial Position 6 3.2 Statement of Income (Profit & Loss) 6 3.3 Statement of Changes in Equity 6 3.4 Statement of Cash Flow 6 4. Notes to the Financial Statements 7 4.1 Accounts 7 4.2 Debts 7 4.3 Viable Business 7 4.4 Contingent Liabilities 7 4.5 Important Points 7 5. Independent Auditors Report 8 5.1 Auditor's Report 8 1. Message to Shareholders 1","Annual Report","8","https://templates.business-in-a-box.com/imgs/1000px/annual-report-D12759.png","https://templates.business-in-a-box.com/imgs/250px/12759.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#12759.xml",{"title":158,"description":6},"annual report",[160,161],{"label":98,"url":99},{"label":101,"url":102},"/template/annual-report-D12759",{"description":164,"descriptionCustom":6,"label":165,"pages":90,"size":9,"extension":10,"preview":166,"thumb":167,"svgFrame":168,"seoMetadata":169,"parents":171,"keywords":170,"url":178},"BOARD MEETING MINUTES [YOUR COMPANY NAME] Organization Name: Date: Location: Time: Board Members Present: [LIST NAMES] Board Members Absent: [LIST NAMES] Guests: List names and affiliations if any. Meeting Called to Order by: [NAME AND TIME] Approval of Previous Meeting Minutes: Motion by: [NAME] Seconded by: [NAME] Outcome: [APPROVED/AMENDED] [Agenda Item Title] Presenter: [NAME] Discussion Summary: Summarize the key points of discussion, including any differing views or debates. Action Items: Detail specific tasks decided upon, who is responsible, and any deadlines. Decisions Made: Summarize any decisions made, including vote outcomes if applicable. [Agenda Item Title] Presenter: [NAME] Discussion Summary: Summarize the key points of discussion, including any differing views or debates. Action Items: Detail specific tasks decided upon, who is responsible, and any deadlines. Decisions Made: Summarize any decisions made, including vote outcomes if applicable. Financial Report: Presented by: Summary: ","Board Meeting Minutes","https://templates.business-in-a-box.com/imgs/1000px/board-meeting-minutes-D13904.png","https://templates.business-in-a-box.com/imgs/250px/13904.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#13904.xml",{"title":170,"description":6},"board meeting minutes",[172,175],{"label":173,"url":174},"Sales & Marketing","sales-marketing",{"label":176,"url":177},"Market Analysis","market-analysis","/template/board-meeting-minutes-D13904",false,{"seo":181,"reviewer":191,"legal_disclaimer":179,"quick_facts":195,"at_a_glance":197,"personas":201,"variants":226,"glossary":253,"sections":287,"how_to_fill":333,"common_mistakes":374,"faqs":399,"industries":427,"comparisons":444,"diy_vs_pro":458,"related_template_ids_curated":471,"schema":483,"classification":485},{"meta_title":182,"meta_description":183,"primary_keyword":23,"secondary_keywords":184},"Non Profit Investment Policy Template | BIB","Free non profit investment policy template covering asset allocation, spending rules, risk tolerance, and fiduciary duties.",[185,186,187,188,189,190],"nonprofit investment policy statement","nonprofit investment policy template","investment policy template word","nonprofit investment policy free","investment policy statement nonprofit","endowment investment policy template",{"name":192,"credential":193,"reviewed_date":194},"Bruno Goulet","CEO, Business in a Box","2026-05-02",{"difficulty":196,"legal_review_recommended":179,"signature_required":179},"advanced",{"what_it_is":198,"when_you_need_it":199,"whats_inside":200},"A Non Profit Investment Policy is a governing document that establishes how a nonprofit organization manages, invests, and spends its financial assets. This free Word download gives boards, finance committees, and treasurers a structured, editable starting point covering investment objectives, asset allocation targets, spending rules, and fiduciary responsibilities — ready to export as PDF and present to your board for adoption.\n","Use it when your nonprofit holds an endowment, reserve fund, or any invested assets that require board-level oversight and written governance. It is also required or strongly expected by major donors, grantmakers, and auditors reviewing your financial controls.\n","Purpose and scope, investment objectives, risk tolerance, asset allocation targets, spending and distribution rules, prohibited investments, manager selection criteria, performance benchmarks, and policy review procedures.\n",[202,206,210,214,218,222],{"title":203,"use_case":204,"icon_asset_id":205},"Nonprofit board members","Fulfilling fiduciary duty to govern the organization's invested assets","persona-board-member",{"title":207,"use_case":208,"icon_asset_id":209},"Executive directors","Establishing written investment governance before a first major gift or endowment","persona-executive-director",{"title":211,"use_case":212,"icon_asset_id":213},"Nonprofit treasurers","Documenting asset allocation rules and spending limits for annual audit review","persona-treasurer",{"title":215,"use_case":216,"icon_asset_id":217},"Finance committee chairs","Formalizing investment oversight procedures for a growing reserve or endowment fund","persona-finance-committee",{"title":219,"use_case":220,"icon_asset_id":221},"Foundation administrators","Complying with donor-restricted fund requirements and grantmaker due diligence requests","persona-foundation-admin",{"title":223,"use_case":224,"icon_asset_id":225},"Development directors","Presenting a credible investment policy to major donors considering a planned gift","persona-development-director",[227,231,235,238,241,245,249],{"situation":228,"recommended_template":229,"slug":230},"Managing a permanent endowment with a perpetual spending distribution","Endowment Investment Policy Statement","investment-policy-statement-D12883",{"situation":232,"recommended_template":233,"slug":234},"Governing a short-term operating reserve held in liquid accounts","Operating Reserve Policy","equipment-operating-lease-D1145",{"situation":236,"recommended_template":237,"slug":230},"Overseeing a donor-restricted fund within a community foundation","Donor-Restricted Fund Investment Policy",{"situation":239,"recommended_template":240,"slug":230},"Setting investment rules for a nonprofit pension or retirement plan","Retirement Plan Investment Policy Statement",{"situation":242,"recommended_template":243,"slug":244},"Establishing general financial controls alongside investment rules","Nonprofit Financial Policy and Procedures Manual","financial-management-policy-D13692",{"situation":246,"recommended_template":247,"slug":248},"Documenting a board's full governance and oversight responsibilities","Nonprofit Board Governance Policy","corporate-governance-policy-D13943",{"situation":250,"recommended_template":251,"slug":252},"Creating a standalone spending policy for an endowment distribution rate","Nonprofit Spending Policy","non-profit-investment-policy-D14019",[254,257,260,263,266,269,272,275,278,281,284],{"term":255,"definition":256},"Investment Policy Statement (IPS)","A written document that defines an organization's investment objectives, risk tolerance, asset allocation, and governance procedures for managing invested funds.",{"term":258,"definition":259},"Endowment","A fund in which the principal is preserved in perpetuity and only a defined portion of investment returns is spent annually to support operations or programs.",{"term":261,"definition":262},"Asset Allocation","The distribution of invested assets across categories — equities, fixed income, cash, and alternatives — to balance return objectives with risk tolerance.",{"term":264,"definition":265},"Spending Rate","The annual percentage of an endowment's average market value that the organization may distribute for operating or programmatic purposes.",{"term":267,"definition":268},"Fiduciary Duty","The legal obligation of board members and investment committee members to act solely in the best interests of the organization when making financial decisions.",{"term":270,"definition":271},"Benchmark","A market index or blended index used to measure whether the investment portfolio is generating returns consistent with its asset allocation and risk profile.",{"term":273,"definition":274},"Rebalancing","Periodically buying or selling asset classes to restore the portfolio to its target allocation after market movements have shifted the actual weights.",{"term":276,"definition":277},"Socially Responsible Investing (SRI)","An investment approach that screens out or prioritizes holdings based on environmental, social, or governance criteria aligned with the organization's mission.",{"term":279,"definition":280},"Underwater Endowment","An endowment fund whose current market value has fallen below the original gift principal, restricting distributions under most state uniform prudent management laws.",{"term":282,"definition":283},"UPMIFA","The Uniform Prudent Management of Institutional Funds Act, adopted in most US states, which sets the legal standard of care for nonprofit investment management and endowment spending.",{"term":285,"definition":286},"Operating Reserve","Liquid funds set aside to cover 3–6 months of operating expenses, held separately from the endowment and governed by a distinct liquidity and risk standard.",[288,293,298,303,308,313,318,323,328],{"name":289,"plain_english":290,"sample_language":291,"common_mistake":292},"Purpose and scope","Defines why the policy exists, which funds and accounts it covers, and which organizational bodies are responsible for its oversight.","This Investment Policy Statement governs all invested assets of [ORGANIZATION NAME], including the [ENDOWMENT FUND NAME] and operating reserves held as of [DATE]. The Board of Directors, acting through the Finance Committee, is responsible for overseeing compliance with this policy.","Scoping the policy too narrowly to cover only the endowment — leaving operating reserves and short-term investments ungoverned, which creates audit findings and donor concerns.",{"name":294,"plain_english":295,"sample_language":296,"common_mistake":297},"Investment objectives","States the primary goals for the portfolio — typically preserving purchasing power, generating income, or growing assets over a defined time horizon.","The primary objective is to preserve the real (inflation-adjusted) value of the [FUND NAME] in perpetuity while generating an annual distribution of [X]% to support [PROGRAM / OPERATIONS]. A secondary objective is to grow the fund's market value at a rate exceeding [BENCHMARK] over rolling [5]-year periods.","Listing objectives that conflict with each other — for example, requiring both maximum capital preservation and a 7% annual spending rate — without acknowledging the tension or setting a priority order.",{"name":299,"plain_english":300,"sample_language":301,"common_mistake":302},"Risk tolerance","Describes how much volatility, drawdown, or short-term loss the organization can accept in pursuit of its return objectives, given its liquidity needs and time horizon.","The organization has a [MODERATE / LONG-TERM GROWTH] risk tolerance. The portfolio should be positioned to limit peak-to-trough drawdown to no more than [X]% over any rolling 12-month period, consistent with the asset allocation targets in Section [X].","Setting a risk tolerance based solely on return aspirations rather than the organization's actual liquidity needs — resulting in a portfolio too illiquid to fund distributions during a market downturn.",{"name":304,"plain_english":305,"sample_language":306,"common_mistake":307},"Asset allocation policy","Sets target percentage allocations across major asset classes, along with acceptable ranges that allow drift before rebalancing is triggered.","Target allocation: Domestic equities [X]% (range [X–X]%), International equities [X]% (range [X–X]%), Fixed income [X]% (range [X–X]%), Cash and equivalents [X]% (range [X–X]%), Alternatives [X]% (range [X–X]%).","Setting allocation ranges so wide (e.g., equities 20–80%) that the policy provides no meaningful constraint and fails to demonstrate prudent oversight to auditors or grantmakers.",{"name":309,"plain_english":310,"sample_language":311,"common_mistake":312},"Spending and distribution policy","Defines the annual distribution rate, the calculation method (typically a rolling 3-year average market value), and restrictions on spending from an underwater endowment.","The annual distribution shall not exceed [X]% of the 12-quarter average market value of the fund, calculated as of [DATE]. No distribution shall be made from a fund whose market value is below its historic dollar value unless authorized by a two-thirds vote of the Board.","Omitting the underwater endowment provision — leaving the board without a written rule when the fund falls below historic dollar value, which is the exact moment a policy is most urgently needed.",{"name":314,"plain_english":315,"sample_language":316,"common_mistake":317},"Prohibited investments and restrictions","Lists investment types the organization will not hold, whether for risk, regulatory, or mission-alignment reasons.","The following are prohibited: direct investments in commodities futures, leveraged or inverse ETFs, single-stock concentrations exceeding [X]% of portfolio value, and any security issued by an entity on the [OFAC / PROHIBITED LIST]. [OPTIONAL: The organization applies the following SRI screens: [SCREENS].] ","Omitting a concentration limit — allowing the portfolio to drift into a large single-stock position (often a donor gift) without a written policy requiring diversification within a defined period.",{"name":319,"plain_english":320,"sample_language":321,"common_mistake":322},"Investment manager selection and oversight","Describes how the organization selects, monitors, and replaces investment managers or advisors, including the criteria and review frequency.","Investment managers shall be evaluated at least annually against the following criteria: (a) adherence to the stated investment mandate, (b) performance relative to the assigned benchmark over rolling 3- and 5-year periods, (c) fees relative to comparable managers, and (d) material changes in ownership, personnel, or investment process.","Naming a specific investment manager in the policy body — requiring a formal policy amendment every time the organization changes advisors, which discourages timely manager replacement.",{"name":324,"plain_english":325,"sample_language":326,"common_mistake":327},"Performance measurement and benchmarking","Identifies the benchmarks against which portfolio performance is measured and the review cadence for reporting to the board or finance committee.","Portfolio performance shall be evaluated quarterly against a blended benchmark of [X]% [INDEX A] / [X]% [INDEX B] / [X]% [INDEX C], rebalanced annually. The Finance Committee shall receive a written performance report at each quarterly meeting.","Using a single equity index (e.g., S&P 500) as the benchmark for a diversified multi-asset portfolio — overstating underperformance in equity bull markets and masking it in downturns.",{"name":329,"plain_english":330,"sample_language":331,"common_mistake":332},"Policy review and amendment procedures","States how often the policy is reviewed, who has authority to amend it, and what vote threshold is required for material changes.","This policy shall be reviewed by the Finance Committee no less than annually, with a full Board review every [3] years or following any material change in the organization's financial position or investment strategy. Amendments require approval by a [majority / two-thirds] vote of the Board of Directors.","Adopting the policy and never scheduling a review — a policy that remains unchanged for 5–10 years while the organization's endowment, spending needs, and risk capacity evolve significantly becomes a liability rather than a governance tool.",[334,339,344,349,354,359,364,369],{"step":335,"title":336,"description":337,"tip":338},1,"Identify which funds and accounts are in scope","List every fund the policy will govern — endowment, operating reserve, board-designated funds, and any donor-restricted accounts. Confirm legal account names match those in your audited financial statements.","If donor-restricted funds are subject to separate gift agreements, reference those agreements by name in the scope section rather than restating their terms.",{"step":340,"title":341,"description":342,"tip":343},2,"Define investment objectives and time horizon","State whether the primary goal is capital preservation, income generation, or real growth — and over what time horizon. Endowments typically have a perpetual horizon; operating reserves are short-term.","Use separate objective statements for each fund type if their goals differ — a single blended objective for an endowment and an operating reserve will create confusion during implementation.",{"step":345,"title":346,"description":347,"tip":348},3,"Set risk tolerance based on liquidity needs","Assess how much annual spending the fund must support and whether the organization could absorb a 20–30% portfolio decline without cutting programs. Set your risk category (conservative, moderate, growth) accordingly.","Survey board members individually on risk tolerance before drafting this section — the results often reveal meaningful differences that need to be resolved before the policy is adopted.",{"step":350,"title":351,"description":352,"tip":353},4,"Build the asset allocation table with ranges","Set target percentages for each asset class and define a rebalancing range (typically ±5 percentage points from target). Confirm the targets are consistent with the stated risk tolerance and return objective.","Model the historical volatility of your target allocation using a 60/40 or 70/30 benchmark before presenting it to the board — showing a worst-year scenario builds realistic expectations.",{"step":355,"title":356,"description":357,"tip":358},5,"Calculate the sustainable spending rate","For endowments, a spending rate of 4–5% of a 12-quarter rolling average is widely considered sustainable over the long term. Calculate what your current fund size implies in annual dollars and confirm it meets program needs.","Run a 10-year Monte Carlo simulation (many investment advisors provide this free) to show the board the probability of the endowment surviving at the proposed spending rate across market scenarios.",{"step":360,"title":361,"description":362,"tip":363},6,"List prohibited investments and any mission screens","Include at minimum a single-security concentration limit and a prohibition on highly speculative instruments. If the board has adopted socially responsible investing criteria, list the specific screens applied.","Tackle the SRI question as a separate agenda item before drafting the policy — it is a values and strategy decision that benefits from a dedicated board discussion rather than a footnote in a policy template.",{"step":365,"title":366,"description":367,"tip":368},7,"Define manager selection criteria and review schedule","Describe the criteria for evaluating your investment advisor or managers and how often formal reviews occur. Set a calendar date for the annual performance report to the finance committee.","Keep manager identity out of the policy body — reference your selection criteria only, so changing advisors does not require a policy amendment.",{"step":370,"title":371,"description":372,"tip":373},8,"Adopt the policy with a recorded board vote","Present the completed policy to the full board, record the adoption vote in board minutes, and store the signed, dated policy in your governance document archive alongside your bylaws and audited financials.","Schedule the first annual policy review on the same calendar as the annual audit — pairing them ensures financial oversight is integrated and not overlooked.",[375,379,383,387,391,395],{"mistake":376,"why_it_matters":377,"fix":378},"Adopting the policy without a formal board vote","An investment policy signed only by staff or a committee member does not carry board authority, which is what auditors, grantmakers, and major donors expect to see.","Present the policy for adoption at a full board meeting, record the vote in the meeting minutes, and retain both the signed policy and the minutes in your governance file.",{"mistake":380,"why_it_matters":381,"fix":382},"Setting asset allocation ranges too wide to be meaningful","A range of equities 20–80% provides no real guidance to investment managers and signals to auditors that the board has not exercised genuine oversight.","Set ranges of ±5 to ±10 percentage points around each target allocation — wide enough to avoid constant rebalancing, narrow enough to reflect a defined risk posture.",{"mistake":384,"why_it_matters":385,"fix":386},"Omitting the underwater endowment provision","When a fund falls below its historic dollar value, the board faces a legal and ethical dilemma with no written guidance, often resulting in imprudent distributions or prolonged inaction.","Include explicit language suspending distributions from any fund whose market value falls below its historic dollar value, with a defined process for board review and authorization of any exception.",{"mistake":388,"why_it_matters":389,"fix":390},"Treating the policy as a one-time document rather than a living governance tool","An investment policy that is never reviewed can bind the organization to asset allocations and spending rules that no longer match its size, risk capacity, or program needs — creating compliance and fiduciary risk.","Schedule an annual finance committee review and a full board review every three years, and log each review in board minutes even when no changes are made.",{"mistake":392,"why_it_matters":393,"fix":394},"Naming specific investment products or funds in the policy","Referencing specific funds by name (e.g., 'Vanguard Total Market Index') requires a formal policy amendment every time the organization rebalances or changes managers.","Describe asset classes and characteristics (e.g., 'low-cost broad market equity index funds') rather than named products, and keep specific manager and fund selections in a separate internal investment schedule.",{"mistake":396,"why_it_matters":397,"fix":398},"Applying a single policy to both the endowment and the operating reserve","An endowment has a perpetual horizon and tolerates equity-heavy allocations; an operating reserve needs to be liquid within 90 days. A single policy either over-restricts the endowment or under-protects the reserve.","Write separate objective, risk, and allocation sections for each fund type, or adopt separate policies — a one-page operating reserve policy and a full investment policy statement for the endowment.",[400,403,406,409,412,415,418,421,424],{"question":401,"answer":402},"What is a nonprofit investment policy?","A nonprofit investment policy is a written governance document adopted by the board of directors that defines how the organization manages its invested assets — including the endowment, operating reserves, and board-designated funds. It establishes investment objectives, risk tolerance, asset allocation targets, spending rules, and procedures for selecting and monitoring investment managers. It is both a fiduciary compliance tool and an operational guide for the finance committee.\n",{"question":404,"answer":405},"Does every nonprofit need an investment policy?","Any nonprofit that holds an endowment, a significant operating reserve, or any long-term invested assets should have a written investment policy. Many state attorneys general and nonprofit regulators expect one as part of basic financial governance. Major donors, grantmakers, and community foundations routinely request a copy during due diligence, and auditors may note its absence as a governance deficiency.\n",{"question":407,"answer":408},"What is a reasonable spending rate for a nonprofit endowment?","A spending rate of 4–5% of a rolling 12-quarter average market value is widely considered sustainable for a diversified endowment over the long term, assuming a blended portfolio return of 6–7% and inflation of roughly 2–3%. Rates above 5.5% risk eroding principal over time. The specific rate should be set in light of the fund's size, the organization's financial needs, and an analysis of historical market scenarios.\n",{"question":410,"answer":411},"What asset allocation is appropriate for a nonprofit endowment?","A common starting point for a growth-oriented endowment is 60–70% equities and 30–40% fixed income and cash, with alternatives (real assets, hedge funds) reserved for larger funds with the governance capacity to oversee them. Conservative organizations or those with near-term spending pressure often hold 50% or less in equities. The right allocation depends on the organization's time horizon, spending rate, and tolerance for short-term volatility.\n",{"question":413,"answer":414},"What is UPMIFA and does it apply to my nonprofit?","UPMIFA — the Uniform Prudent Management of Institutional Funds Act — is the governing legal standard for nonprofit endowment management adopted in 49 US states and the District of Columbia (Pennsylvania follows a different standard). It requires nonprofits to consider factors including general economic conditions, the organization's charitable purposes, and the long-term sustainability of the fund when making investment and spending decisions. Your investment policy should reference UPMIFA compliance if your state has adopted it.\n",{"question":416,"answer":417},"How often should a nonprofit investment policy be reviewed?","A formal annual review by the finance committee is standard practice, with a full board review every three years. The policy should also be reviewed immediately following any major change — a significant new gift, a change in investment advisor, a market event that triggers an underwater endowment, or a material shift in the organization's financial position or program spending needs.\n",{"question":419,"answer":420},"Should our nonprofit use a socially responsible investing (SRI) approach?","Whether to apply SRI screens is a values and strategy decision for the full board, not a technical one. Many nonprofits working in environmental, social justice, or health-related fields align their endowment investments with their mission using negative screens (excluding tobacco, firearms, or fossil fuels) or positive screens (prioritizing ESG-rated funds). The investment policy should state any adopted screens explicitly so managers can implement them consistently.\n",{"question":422,"answer":423},"What is the difference between an investment policy and a spending policy?","An investment policy covers the full governance framework — objectives, risk, asset allocation, manager selection, and oversight procedures. A spending policy is a narrower document focused solely on the annual distribution rate and the method for calculating it. Many nonprofits embed their spending policy as a section within the investment policy; others adopt a standalone spending policy that is referenced by the investment policy.\n",{"question":425,"answer":426},"Can we write our own investment policy without a financial advisor?","A quality template handles the structure and standard governance language for most small to mid-sized nonprofits. For organizations with endowments under $5 million and a straightforward 60/40 portfolio, completing the template with board input is typically sufficient. Engaging an independent investment advisor becomes worthwhile when the endowment exceeds $5 million, when complex asset classes or alternative investments are involved, or when the organization's financial position requires a customized spending analysis.\n",[428,432,436,440],{"industry":429,"icon_asset_id":430,"specifics":431},"Foundations and philanthropy","industry-nonprofit","Perpetual endowment management, donor-restricted fund compliance, and UPMIFA spending rules are central to the investment policy framework.",{"industry":433,"icon_asset_id":434,"specifics":435},"Higher education and research","industry-education","University and college endowments often include alternative investments, multi-manager structures, and a long-term total-return objective tied to tuition support.",{"industry":437,"icon_asset_id":438,"specifics":439},"Healthcare and hospitals","industry-healthtech","Nonprofit hospitals balance short-term capital reserve needs with long-term endowment growth, requiring separate policy sections for each fund type.",{"industry":441,"icon_asset_id":442,"specifics":443},"Religious and faith-based organizations","industry-faith-organization","Faith-based organizations frequently apply mission-aligned or values-based investment screens that must be explicitly documented in the policy to guide manager selection.",[445,448,451,454],{"vs":243,"vs_template_id":446,"summary":447},"D{NONPROFIT_FINANCIAL_POLICY_ID}","A financial policy and procedures manual covers the full range of financial controls — expense approval, check signing, bank reconciliation, and internal audit. An investment policy is narrower, focused exclusively on managing invested assets. Most nonprofits need both: the financial manual governs day-to-day transactions; the investment policy governs long-term invested funds.",{"vs":233,"vs_template_id":449,"summary":450},"D{OPERATING_RESERVE_POLICY_ID}","An operating reserve policy addresses only the liquid funds held to cover 3–6 months of operating expenses, with a short-term, capital-preservation focus. An investment policy typically covers endowment and longer-horizon funds with a growth-oriented objective. The two documents should be adopted together and cross-referenced, but they serve different funds and risk profiles.",{"vs":247,"vs_template_id":452,"summary":453},"D{NONPROFIT_GOVERNANCE_POLICY_ID}","A board governance policy defines roles, responsibilities, conflict-of-interest rules, and board procedures across all areas of organizational oversight. An investment policy is a specialized subset focused on financial asset management. The governance policy typically establishes the finance committee's authority; the investment policy defines what that committee is authorized to do with invested assets.",{"vs":455,"vs_template_id":456,"summary":457},"Strategic Plan","strategic-planning-template-D13857","A strategic plan maps the organization's programmatic goals, priorities, and resource allocation over a 3–5 year horizon. An investment policy is a financial governance document that supports the strategic plan by ensuring invested assets are managed to fund those goals sustainably. The two documents should be reviewed in tandem — a significant strategic expansion may require a revision to the spending rate or asset allocation.",{"use_template":459,"template_plus_review":463,"custom_drafted":467},{"best_for":460,"cost":461,"time":462},"Nonprofits with endowments under $2 million and a straightforward 60/40 portfolio managed by a single advisor","Free","3–5 hours to complete with board input",{"best_for":464,"cost":465,"time":466},"Organizations with endowments of $2–$10 million, donor-restricted funds, or SRI screens requiring tailored language","$500–$2,000 for an investment advisor or nonprofit CPA review","1–2 weeks including board presentation",{"best_for":468,"cost":469,"time":470},"Large endowments over $10 million, multi-manager structures, alternative investments, or complex UPMIFA compliance requirements","$2,000–$8,000 for a specialized nonprofit investment consultant","4–8 weeks",[472,456,473,474,475,476,477,478,479,480,481,482],"non-profit-organization-business-plan-D12024","financial-projections_12-months-D360","budget-proposal-D13607","small-business-expense-report-D13396","annual-report-D12759","board-meeting-minutes-D13904","conflict-of-interest-policy-for-board-members-D13933","grant-proposal-D12615","receipt-D395","bylaws-not-for-profit-corporation-D1004","seo-audit-report-D14052",{"emit_how_to":484,"emit_defined_term":484},true,{"primary_folder":116,"secondary_folder":486,"document_type":487,"industry":488,"business_stage":489,"tags":490,"confidence":496},"equity-and-investment","policy","non-profit-organizations","all-stages",[491,492,493,494,495],"governance","non-profit","investment-policy","fiduciary","asset-management",0.92,"\u003Ch2>What is a Non Profit Investment Policy?\u003C/h2>\n\u003Cp>A \u003Cstrong>Non Profit Investment Policy\u003C/strong> — formally called an Investment Policy Statement (IPS) — is a governing document adopted by a nonprofit's board of directors that defines how the organization manages, invests, and distributes its financial assets. It establishes the investment objectives for each fund, sets the acceptable level of portfolio risk, defines target asset allocations and rebalancing rules, and specifies the annual spending rate that governs endowment distributions. Beyond the portfolio mechanics, it assigns clear fiduciary responsibilities to the board, finance committee, and any outside investment advisors, creating an accountability structure that satisfies auditors, grantmakers, and major donors.\u003C/p>\n\u003Ch2>Why You Need This Document\u003C/h2>\n\u003Cp>Without a written investment policy, your board has no documented standard of care to point to when investment decisions are challenged — and under UPMIFA, which governs nonprofit endowments in 49 states, the absence of a formal policy is itself a governance deficiency. Grantmakers and community foundations routinely request a copy of your investment policy before approving major gifts or endowment transfers; the lack of one signals organizational immaturity and can stall a significant donation. Internally, the policy prevents ad hoc asset allocation changes, unauthorized manager switches, and spending decisions made without board authority — the exact scenarios that generate audit findings and board liability. A properly adopted investment policy, reviewed annually and stored alongside your audited financials, demonstrates that your organization is managing public trust responsibly — and gives every future board member a clear framework from the day they join.\u003C/p>\n",1778773547774]