Who's Minding the Money? An Investment Guide for Nonprofit Board Members (Second Edition)
Complex investment options. Market shifts prompted by the current financial crisis. Fears of getting duped by an unscrupulous investment advisor. Afraid to invest? In this financial climate, what board wouldn't be?
When it comes to overseeing an organization's investments, the ultimate responsibility falls squarely on the board. When investment policies are shaped by informed boards that supervise their advisors, the returns almost always outweigh the risks. But when boards are hands-off, because they lack knowledge or the courage to walk away from investments they don't understand, they can end up approving investments that are inappropriate for their organizations. The result can be a legal nightmare in which board members are held personally liable.
How can boards avoid these pitfalls? Who's Minding the Money? makes it easy and, yes, even enjoyable, to understand how and why your board should oversee its organization's investments. The book avoids financial jargon, uses uncomplicated language, and features targeted case studies that illustrate why board members often disengage from their investing responsibilities and how to re-engage them.
Topics covered include
- Setting investment goals
- Creating helpful policies and structures
- Scam-proofing your investments
- Avoiding conflicts of interest
- What to look for in an investment advisor
- What to do when things don't go according to plan
- A glossary of investment and legal terms
You will also find downloadable content that includes sample investment policies, alternative investment due-diligence guidelines, a sample spending policy, and a self-guided investment audit.
Author: Robert P Fry, Jr.