SELECTING THE RIGHT INVESTMENT ADVISOR FOR YOUR NONPROFITServing people. Meeting needs. Moving communities forward.
While individual missions may vary, the River Region is home to many wonderful nonprofits that serve an important role in the success of our community.
Many nonprofit leaders have strong support from current and prospective donors, and they are fortunate to have grown a pool of funds to invest for the long-term support of the nonprofit’s mission. Now the real work begins.
How do you select an investment advisor who will carry out the fiduciary duty of administering the funds and developing an investment strategy that will further the nonprofit’s long-term goals? There’s a wide range of choices, and it is important to find an investment advisor who is the best fit for your organization. Here are some considerations to help guide your decision.
Ask Advisors Well-Informed Questions:
- Does the investment advisor have a depth of experience working with nonprofit organizations, or, better yet, specialize in nonprofits?
- Is the investment advisor conversant in IRS rules governing nonprofits?
- Is the investment advisor an expert in industry best practices?
- Does the investment advisor have adequate staff resources to serve clients?
Another consideration in choosing an advisor is whether the institution will be a resource to help communicate with current and prospective donors. For instance, some financial institutions may conduct seminars or small meetings with donors to explore topics such as planned giving or complex gifts.
Quarterly presentations are standard for touching base and ensuring an investment strategy is on track. Make sure the prospective investment advisor is doing more than delivering a quarterly performance statement. An advisor should help the organization achieve its mission.
At Regions, our solutions-based approach guides nonprofits through the dynamics of stewarding an endowment fund by providing guidance on investment policies and portfolio construction, as well as offering best practices to improve administrative elements for the organization.
MEET THE EXPERT
Larry Ransburgh, Senior Vice President, Institutional Services Strategist at Regions Bank. Contact him at Larry.Ransburgh@Regions.com.
Regions Bank, Member FDIC