Investment Committee

Not every board needs an investment committee. If the organization has sizable assets, an endowment, and/or a planned giving program, it probably should form an investment committee. This committee’s responsibility is not to invest the funds, but to ensure there is a secure framework for safe investments of all applicable funds and that an independent manager manages the assets under the committee’s supervision.

The primary duties of an investment committee are:

• Drafting investment policies for the organization
• Hiring and overseeing the performance of an outside investment manager
• Setting performance goals for the portfolio
• Following the markets closely
• Being familiar with new regulations affecting the invested assets
• Reporting investment developments to the rest of the board

Additional references:

Robert C Fry, Minding the Money: An Investment Guide for Nonprofit Board Members