Section 2: Resource 4
Finance and Investments
As a foundation board member, you will be making important financial decisions for a legal entity that is regulated by the Internal Revenue Service and state agencies. You will assume legal and ethical duties of obedience, loyalty, and care to the foundation.
In this section, you will review a sample family foundation investment process, a short questionnaire to establish a framework for your investment-related decisions, and other articles, tools, and webinars for monitoring and managing finances and investments at your foundation. For a wide variety of additional resources on this topic, current NCFP Friends are invited to login to NCFP's Family Philanthropy Online Knowledge Center.
Sample Investment Process for a Family Foundation
This short document describes the process one family foundation went through to establish its investment goals and priorities, select an investment manager, and develop, execute, and monitor its investment plan.
Asset Class Performance Grid
A visual presentation of the need to diversify your assets, this “Broad Asset Class Performance” quilt shows the variance in best and worst performing asset classes over a 13-year period.
Taking this short questionnaire will help you to establish a framework for all investment-related decisions. The answers to this questionnaire will aid in the development of the investment policy statement, as well as the asset allocation, manager selection, ongoing evaluation, and reporting requirements for your portfolio.
Rethinking the Management of Foundation Endowments
This essay by the long-time COO of The Commonwealth Fund offers lessons from the 2008-09 financial crisis and earlier ones that could help boards and investment committees responsible for foundation endowments avoid mistakes going forward.
Impact Investing: An Introduction
This guide from the Philanthropy Roadmap series introduces the concept of impact investing, which seeks to generate social and environmental benefits while delivering a financial return.
Mission investing: Overcoming resistance and getting started
How can you engage your board in a thoughtful conversation about the options and added benefits of mission investing? What are the best ways to get started with mission investing, and how do family foundations, especially those with limited staff capacity, manage these new strategies to better leverage their philanthropic assets and mission? [FRIENDS AND SUBSCRIBERS ONLY]
Impact investing and family philanthropy: a one-two punch
As a means for providing capital to for-profit ventures with a social mission, impact investing is increasingly viewed as an effective solution for combining the philanthropic aspirations of wealthy families with their financial objectives. This webinar focuses on how to successfully manage your wealth for impact and profit in a manner that aligns with your philanthropic goals. [FRIENDS AND SUBSCRIBERS ONLY]