Episode 38: Institutional Investing - Endowments and Foundations for Nonprofit Organizations..

Bite Sized Finance

How can nonprofit organizations ensure their missions are financially sustainable? Join me, Kelly Brothers, Mike Genovese, and Scott Thomas Principals of CAPTRUST Sacramento, as they unpack the complex world of institutional investing and fiduciary governance. Gain insights from Mike's valuable experiences on the boards of the Crocker Art Museum and the Mercy Foundation, where he shares the evolving challenges and unwavering missions of these cultural and social pillars. This episode emphasizes the significance of long-term financial management for endowments, foundations, and associations, and the personal fulfillment that comes from supporting local organizations. In our deep dive into nonprofit mission engagement and fiduciary strategies, we stress the importance of fiduciary responsibility and maintaining robust client relationships. Learn why regular performance benchmarking and issuing RFPs are essential for competitive fees and service quality. Discover how savvy fund management can attract and retain donors, ultimately benefiting the institution's mission. These insights are vital for finance committee members and those involved in institutional investment management, ensuring they can effectively support and enhance their organizations' missions. Finally, we explore the nuances of endowment distribution and investment policies, shedding light on common practices like the rolling average distribution rate and adjustments during economic downturns. Understand the differences between true and quasi-endowments, the importance of adhering to board policies, and the critical need for documenting investment and distribution policies for institutional memory. Through real-life case studies, we illustrate the financial benefits of proper cash management and the role of advisors in guiding nonprofit committees towards optimal financial sustainability. For more information on what we provide at CAPTRUST visit www.captrust.com. You can contact me, Kelly Brothers, through the show at: [e-mail] To reach me, Scott or Mike at CAPTRUST visit www.captrust.com/locations/sacramento-ca/ Episode Highlights (00:00) Institutional Investing and Fiduciary Governance (07:45) Nonprofit Mission Engagement and Fiduciary Strategies (27:04) Endowment Distribution and Investment Policies (36:59) Nonprofit Endowment & Foundation Strategies Chapter Summaries(00:00) Institutional Investing and Fiduciary Governance Endowment investing and fiduciary governance for nonprofits, with insights from board members and advisors. (07:45) Nonprofit Mission Engagement and Fiduciary Strategies Managing endowments and foundations requires fiduciary responsibility, client-driven services, benchmarking, RFPs, and mission engagement. (27:04) Endowment Distribution and Investment Policies Nature's endowment distribution policies, true vs. quasi-endowments, documenting policies, limited power of attorney, and investment policy statements. (36:59) Nonprofit Endowment & Foundation Strategies Efficient management of endowments and foundations includes cash management, fiduciary responsibilities, and regular policy review.