Endowment committees face unique issues and bear a considerable burden; sometimes larger than they realize. And, simply by virtue of working as a committee or within the non-profit framework, they may grapple with challenges not faced by other fiduciaries:
- Sometimes members are paid, others are volunteers, creating unique needs.
- The role of group dynamics and effective communications must be considered.
- Committees often strive to adopt “best practices.”
To untangle this rare convergence of group actions and financial discipline, we offer services specific to the needs of foundations and non-profit fiduciaries:
- A fiduciary review, in which the effectiveness of the investment committee is evaluated.
- Promotion of stewardship that showcases the fiduciary process to potential donors.
- Goal definition that integrates the relationship between endowment policy and the IPS.
- Adoption of an appropriate spending rule and smoothing rule.
- Proper asset allocation, including:
- Ascertaining risk tolerance,
- Defining a time horizon,
- Generating a modeled return,
- Appropriate asset classes, and
- Rebalancing guidelines.
- Assistance in defining the duties of all involved parties.
- Development of mission-driven or SRI options.
