An endowment is a hallmark of financial longevity and an important component of any nonprofit’s long-term strategy. It allows nonprofit board members, administrators and donors to build a reserve fund to further their organization’s mission and complement sometimes irregular annual gifts and donations.
Cash is the lifeblood of every organization, but for a nonprofit, this vital resource goes beyond the bottom-line. A lack of cash can interfere with an organization’s ability to achieve a social mission or deliver services to those in need. The weight of this responsibility falls to nonprofit leaders and boards and is challenging for many.
For nonprofit leaders, managing an investment portfolio to support a charitable organization’s mission is a significant challenge. Proper investment stewardship requires the right blend of heart, dedication and expertise. Assessing whether an organization has the right elements in place for success is critical to ensuring its well-being. Here are three guideposts that are essential to building financial wherewithal within a nonprofit organization: