About this collection: This Content Collection includes resources describing how a foundation's spending policy and organizational objectives are linked to development of a cohesive and integrated investment strategy, as well as sample policies and other related advice.
A successful family foundation investment strategy depends on both a sound process and well thought-out, written policies. This Content Collection includes resources describing how a foundation’s spending policy and organizational objectives are linked to development of a cohesive and integrated investment strategy, as well as sample policies and other related advice.
Interested in aligning your investments with your values and mission? Please see the NCFP Content Collection on Impact Investing for additional information and resources.
Start Here: Developing an Investment and Spending Policy
Recommended Best Practices in Managing Foundation Endowments
Tool
While foundations differ in sophistication, resources, staff, and amount of financial resources, there are both specific responsibilities incumbent on foundation boards and generally accepted principles for investment management. These best practices are universal to effective management of investment portfolios as applied to fit the specific circumstances of each foundation.
Identifying and Working with Investment Advisors
Frequently Asked Questions
What is mission investing and is it different from impact investing?
Article
Mission investments are made by foundations and other mission-based organizations to further their philanthropic goals. Mission investments (like impact investments) are intended and designed to generate both a measurable social or environmental benefit and a financial return.
What Kinds of Financial Expenses Do Not Count Toward the 5% Payout?
Ask the Center
With the exception of expenses for the management and product of income, all charitable expenses – including the cost of preparing the foundation’s 990-PF – count towards the payout. So, whether it’s rent, utilities, travel-related expenses, grants, contracts with consultants, or other such expenses – everything that you spend, other than…
Sample Investment Policies
Sample Investment Committee Job Descriptions and Charters
Investment Committee Job Description (Lipscomb Family Foundation)
Sample
The Investment Committee is responsible for the oversight of the Foundation assets. The Committee is comprised of three members selected from the Board. The Committee is responsible for defining the investment objectives and policies for the Foundation’s assets, subject to the overall guidelines set forth in this Policy. It is…
