Organizational Structure

Investment Committee

Note: Articles published before January 1, 2017 may be out of date. We are in the process of updating this content.

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