New year, new aspirations! Now is a great time to set goals, get on track, and manifest a successful year ahead. To give context to what to expect in financial markets and the economy this year, we will be sharing our Outlook on February 9, sign up today to reserve your spot. Until then, read on for three easy ways your organization can hit the ground running today, and throughout 2023.

Revisit your organization’s Investment Policy Statement

Investment Policy Statements are critical for non-profits because they serve as a guide for the organization’s investment program – by clearly spelling out the goals the organization is trying to achieve and the risks they are willing to take in order to do so. At the start of each year, it’s a best practice for board members to introduce the habit of revisiting your organization’s investment policy to make sure the organization’s guidelines and constraints are still aligned.

Ask yourself the following:

• How should we prioritize growth and preservation?
• What guidelines and constraints do we want to stay within?
• What monitoring and evaluation procedures should we adhere to?

If any of these have changed over the past year, it’s important to consider if your investment advisor is capable of delivering the results your organization needs. If your board and finance committee is considering an RFP this year, check out this 30-minute on-demand webinar, Helping Non-Profits Navigate the RFP Process, where we break down the basics and help streamline the process. You can also get a complimentary copy of our sample RFP and RFP scorecard when you register.

Review fiduciary responsibilities with new board members

Does your organization have new board members starting this year? Since board members are responsible and accountable for the actions of your organization, they must be fiduciaries, acting in the best interest of your organization. Make sure your new board members are versed in three primary fiduciary duties:

• Duty of Care: Officers, directors, and fund managers must manage and invest portfolios ‘in good faith and with the care an ordinarily prudent person in a like position would exercise in similar circumstances.’
• Duty of Loyalty: Act in the best interest of your organization.
• Duty of Obedience: Know and obey applicable laws and regulations, donor intent and the organization’s mission.

For additional information on fiduciary best practices, as well as tips on fundraising, spending policies, and more, download your free copy of our Board and Staff Education Guidebook.

Stay informed on the current market environment

The market environment is constantly changing. This past year alone, inflation soared to a multi-decade high. This posed a problem to everyone, but especially to perpetual endowments that have a goal of maintaining their purchasing power over time.

As your organization budgets and plans for the year ahead, it’s important to be flexible with your portfolio and build in realistic inflation assumptions. Knowing the potential impact of inflation, as well as where the market is, and the direction it is heading can help you prepare.