Nonprofits such as foundations, endowments and religious organizations come to us for our insightful financial advisory so they can continue to focus on their purposeful initiatives. We help them have a well-defined plan, beginning with an Investment Policy Statement designed to bring continuity to the decision-making even as committee members and fiduciaries change.
Our team collaborates with their directors, board members and other professional advisors such as trustees, attorneys and CPAs to monitor expenses and adhere to a fiduciary standard of care. We can also help you establish, manage and run a corporate retirement plan that is right for you and your organization.
We believe it’s important for nonprofit organizations to align their values with their investment policies. While this seems easy to do, many organizations have done so and found it difficult to manage. At WealthEngage, we have experience with Social Responsible Investing (SRI) and applying negative screens to exclude certain types of investments for our clients.
Of course, socially concerned clients pursue the same goals as all investors: generating income or preserving capital for future needs. It’s why we apply the same financial analysis to socially responsible investments as we do to others.
In doing so, we specialize in Environmental, Social, and Governance (ESG) analysis. We believe by applying ESG, you can better manage the risks in your portfolio and not detract from performance. We can recommend a variety of investment vehicles that can accommodate your organization’s philosophy as well as its investment objectives.
A Nonprofit Institution, Pillar Of The Community. A hospital foundation wanted to know how they could generate enough money for grants each year without incurring too much market risk. They had a requirement for return and, as a result, had to have exposure to equities.
We reviewed and helped the organization update its Investment Policy Statement to outline how their investment program is expected to operate, providing clear risk and return objectives, performance evaluation standards, and any portfolio constraints that must be considered.
They were also concerned with integrating their values and their investments. We created multiple screens to restrict certain investments like tobacco and alcohol, but further integrated environmental, social and governance screens, aligning with their values and potentially reducing risk in the portfolio.
We helped them develop a spending policy designed to avoid the erosion of their portfolio’s principal and introduced alternative investment strategies to mediate the risk profile, without downplaying the return expectation.
This investment profile is hypothetical and not indicative of any specific situations or clients. It is presented only as an example and not intended as investment advice. Asset allocation and diversification do not guarantee a profit nor protect against a loss. There is no assurance that any investment strategy will be successful. Investing involves risk including the possible loss of principal. While interest on municipal bonds is generally exempt from federal income tax, it may be subject to the federal alternative minimum tax, state or local taxes. In addition, certain municipal bonds (such as Build America Bonds) are issued without a federal tax exemption, which subjects the related interest income to federal income tax. Please note, changes in tax laws or regulations may occur at any time and could substantially impact your situation. Raymond James financial advisors do not render advice on tax or legal matters. You should discuss any tax or legal matters with the appropriate professional.