Non-Profit Investment Policy Template

Business-in-a-Box's Non-Profit Investment Policy Template

Document content

This non-profit investment policy template has 4 pages and is a MS Word file type listed under our legal agreements documents.

Sample of our non-profit investment policy template:

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

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Document content

This non-profit investment policy template has 4 pages and is a MS Word file type listed under our legal agreements documents.

Sample of our non-profit investment policy template:

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

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