Elements of an Effective Investment Policy Statement

Discover free nonprofit investing resources, including policies, guides, and templates, to keep your investment or endowment program running strong.

Elements of an Effective Investment Policy Statement

Have you reviewed your Investment Policy Statement lately? A clearly articulated Investment Policy Statement (IPS) helps meet your fiduciary obligations and acts as a roadmap for oversight of your organization’s assets.

Here are 3 topics you'll want to cover in your Investment Policy Statement for your nonprofit organization

  • A Clear Definition of Duties and Responsibilities
    Identify the different parties and their responsibilities in regard to the oversight of your organization’s assets.

  • A structure to identify risk and allocate among asset classes
    Insure your IPS can respond to changing marketing environments and changes can be made without a lengthy approval process.

  • A clearly defined Spending Policy
    Define items like a sustainable spending rate, calculation methodology, and how your spending policy will the implemented.

Download an Investment Policy Statement checklist.

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