Non-Profit Investment Policy

{{company_name}}

{{company_address}}

Phone: {{phone}} | Email: {{email}} | Web: {{website}}

Non-Profit Investment Policy

Non-Profit Investment Policy

{{company_name}}

{{company_address}}

Phone: {{phone}}

Email: {{email}}

Website: {{website}}

1. Purpose

The purpose of this Investment Policy Statement (IPS) is to establish a clear and concise framework for the prudent management of the organization's investment assets. This policy is designed to assist the Board of Directors and the Investment Committee in fulfilling their fiduciary responsibilities and ensuring that investment decisions are made in a manner consistent with the organization's mission, risk tolerance, and financial objectives.

2. Investment Objectives

The primary investment objectives are:

a) Preservation of Capital: To protect the real (inflation-adjusted) value of the investment portfolio.

b) Generation of Income: To provide a consistent and reliable stream of income to support the organization's operational and programmatic needs.

c) Long-Term Growth: To achieve long-term capital appreciation that contributes to the sustainability and growth of the organization's endowment (if applicable) and other investment funds.

d) Liquidity: To maintain sufficient liquidity to meet immediate and anticipated cash flow requirements.

3. Asset Allocation

The investment portfolio shall be diversified across various asset classes to optimize risk-adjusted returns. The target asset allocation ranges are as follows:

a) Equities (Domestic and International): {{equity_allocation_range}}%

b) Fixed Income (Bonds, Money Market): {{fixed_income_allocation_range}}%

c) Alternative Investments (e.g., Real Estate, Private Equity, Hedge Funds): {{alternative_investment_allocation_range}}% (if applicable and approved by the Board)

Actual allocations may deviate from these ranges within a pre-defined tolerance level of {{tolerance_level}}%.

4. Investment Constraints

The following constraints shall guide investment decisions:

a) Liquidity Needs: Sufficient liquid assets will be maintained to cover a minimum of {{months_operating_expenses}} months of operating expenses.

b) Risk Tolerance: The organization has a moderate risk tolerance, seeking to achieve its objectives while avoiding undue exposure to principal loss.

c) Time Horizon: The investment horizon is long-term, generally considered to be {{investment_time_horizon}} years or more, consistent with the organization's enduring mission.

d) Socially Responsible Investing (SRI): The organization will consider ESG (Environmental, Social, Governance) factors in its investment decisions, aligning investments with its values and mission, where feasible and prudent.

e) Prohibited Investments: Investments in certain sectors or companies (e.g., {{prohibited_investment_types}}) may be prohibited by the Board of Directors.

5. Roles and Responsibilities

a) Board of Directors: Has ultimate fiduciary responsibility for the oversight of the investment portfolio, including approval of this IPS.

b) Investment Committee: Responsible for developing, implementing, and monitoring the investment strategy, recommending changes to the IPS, and selecting and overseeing investment managers.

c) Investment Manager(s): Responsible for managing the portfolio in accordance with this IPS and reporting regularly to the Investment Committee.

6. Performance Monitoring and Reporting

The Investment Committee shall regularly review the performance of the investment portfolio against established benchmarks (e.g., {{benchmark_index_equity}}, {{benchmark_index_fixed_income}}) and the stated investment objectives. Performance reports will be provided to the Board of Directors at least {{reporting_frequency}}.

Periodic reviews of this IPS will be conducted at least annually, or more frequently as economic conditions or organizational circumstances warrant.

7. Spending Policy

The spending policy for the endowment (if applicable) and other restricted funds is designed to provide a stable and predictable flow of funds to support the organization's operations while preserving the real value of the endowed assets. The annual spending rate shall be {{spending_rate_percentage}}% of the average market value of the endowment over the preceding {{number_of_years}} quarters/years.

8. Amendments

This Investment Policy Statement may be amended only by a majority vote of the Board of Directors.

Date of Adoption: {{adoption_date}}

Signature Block

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{{board_chair_name}}

Chair, Board of Directors

{{date}}

_________________________________________

{{executive_director_name}}

Executive Director

{{date}}