Non-Profit Investment Policy

The Non-Profit Investment Policy template under USA law provides comprehensive guidelines for non-profit organizations seeking to establish an investment policy for managing their financial assets. This document outlines the legal requirements, rules, and best practices that non-profit entities must adhere to while making financial investments in the United States.

The template begins by defining the purpose and scope of the investment policy, affirming that the primary goal is to preserve and grow the organization's assets while ensuring their responsible and ethical management. It outlines the legal framework surrounding non-profit investments, including compliance with federal, state, and local laws and regulations.

The document then addresses key aspects that should be included in the investment policy, such as defining the roles and responsibilities of the board of directors, investment committee (if applicable), and investment manager(s). It sets forth the criteria for investment selection and monitoring, outlining the types of investments that are deemed appropriate for the non-profit organization based on risk tolerance, liquidity needs, and long-term financial goals.

Furthermore, the template emphasizes the importance of diversification to mitigate risk, providing guidelines on portfolio allocation and asset allocation strategies. It also includes guidelines related to reporting and transparency, such as establishing regular financial reporting and disclosure requirements.

The Non-Profit Investment Policy template emphasizes ethical considerations for non-profit organizations, outlining guidelines for socially responsible investing and avoiding conflicts of interest. It may incorporate guidelines on avoiding investments in companies that engage in activities such as tobacco, gambling, or firearms manufacturing.

Overall, this legal template serves as a practical framework for non-profit organizations to develop an investment policy that aligns with their mission, values, and legal obligations. It provides a clear roadmap for managing financial assets responsibly while maximizing returns to support the organization's philanthropic endeavors.