Articles

Content adapted from an article originally published by, and used with permission from, Fiducient Advisors LLC.1 Nonprofit investment committees have a heavy fiduciary responsibility but can sometimes lack the structure to maximize their effectiveness. While establishing a formal approach to committee composition and practices may sound straightforward, committees often fail to develop a thoughtful approach to the makeup of who is on their “bench,” which can lead to ineffective meetings or focu

Content adapted from an article originally published by, and used with permission from, Fiducient Advisors LLC. Nonprofit organizations may experience several investment paradoxes throughout the portfolio creation process. Our team unpacks four of the most common. 1. A lower spending rate can lead to a greater spend allowance. A well-designed spending policy is essential for both advancing an organization’s mission and safeguarding the corpus of an endowment. Identifying the right spending mode

Content adapted from an article originally published by, and used with permission from, Fiducient Advisors LLC.* Measuring Portfolio Growth vs. Personal Growth The adage “You don’t need to be perfect; you just need to be better than you were yesterday” is good advice for personal growth but has less application when evaluating investment results. In today’s volatile up/down market, outperforming yesterday might not be enough, nor does it represent an appropriate timeframe for comparison. Managi

Content adapted from an article originally published by, and used with permission from, Fiducient Advisors LLC.1 Fiduciaries to nonprofit organizations play an instrumental role in managing an organization’s interests while furthering its important mission. However, the role of a fiduciary involves much more than attendance at meetings. Fiduciaries must exercise integrity, thoughtfulness, and prudence in decision-making, all while being proactively engaged and asking the right questions. It’s c

Content originally published by, and used with permission from, Fiducient Advisors LLC. Most experienced nonprofit board and committee members understand the importance of good governance practices. The Investment Policy Statement (IPS) is one of the most vital governance documents, serving as a guide for both current and future committee members. This document should reflect the specifics of each organization, including its mission, needs, goals, and guidelines for oversight. Every nonprofit s

Content originally published by, and used with permission from, Fiducient Advisors LLC. “The name of the investment game is not to get rich, but rather to not get poor.” – William J. Bernstein[i] The concept of a spending policy is to provide guidance and guardrails when it comes to thoughtfully using and protecting investment resources. It has application among all investor types – both institutional and individuals – though, in practice, a spending policy often takes on more formality and nua

Content adapted from an article originally published by, and used with permission from, Fiducient Advisors LLC. A robust governance framework may be one of the biggest drivers of long-term outcomes for a nonprofit organization. A defined governance process is a simple yet effective approach to ensure that Committees remain actively involved in fulfilling their fiduciary duties. While Committee members can sometimes fixate solely on investment performance, they need to be aware that analyzing sp

What is a Charitable Remainder Trust (CRT)? It is a trust where non-charitable beneficiaries (usually the grantor and grantor’s spouse) receive payments at least annually during their lives or for a number of years, and a charity receives the trust assets remaining at the end of the trust term. A charitable trust is also referred to as a “split interest trust”. This is because the beneficial interests in the trust are “split” between the initial non-charitable beneficiaries and the charitable