Nonprofits, the act of charity, and fiduciary best practices create positive ripple effects as we start the New Year.
The purpose of nonprofits is to help others without expecting something in return
other than the joy in fulfilling the mission and boosting the public good. This outward-directed charitable endeavor is a wonderful way to begin the New Year, especially in 2021. Given the hardships resulting from the coronavirus pandemic, it is critical that people support nonprofits. It is especially rewarding to seek those organizations whose missions strike a personal chord.
In addition to financial contributions, consider getting involved in a leadership capacity. Start by knowing the responsibilities and liabilities involved so you can truly make a difference for the recipients of the organization’s mission.
Nonprofit leaders don’t always realize they have legal fiduciary responsibilities and
the full scope of these obligations. But you’re expected to know them. Understanding these important responsibilities is a must! Implementing the best fiduciary practices is also critical to properly manage and optimize the nonprofit’s funds – the engine that fuels the mission. You aren’t expected to manage the investments yourself – but you do need to know how to select prudent experts to help you. Mediocre investment management and high investment costs typically mean less for the mission.
FiduciaryPath teaches nonprofit leaders about the fiduciary responsibilities they need to know to manage their funds and how to hire experts who will work in the best interest of the nonprofit and beneficiaries of the mission. This leadership knowledge enhances the nonprofit’s’ reputation, builds trust with donors, and does considerably more for organizations’ long-term mission.
Why this is important: You may be surprised to know that for a nonprofit with
investments of $100 million, each 1% gain or loss in its investment returns is $1 million more or less for its mission. It’s even more meaningful to examine Investment Expenses: 1% more in investment costs means $1 million less per year for the mission. Likewise, 1% less in costs means $1 million more PER YEAR available for the organization’s mission and beneficiaries.
FiduciaryPath guides nonprofits on these critical best practices to enhance their ability to boost the public good. This accelerates the efforts of the people leading the cause and generates positive ripple effects for both the donors and the beneficiaries.
We believe starting the New Year with fiduciary knowledge that benefits the broader public is a great leap forward for everyone. Our first step into 2021 is to help nonprofit organizations and their leaders apply fiduciary expertise that can definitively change outcomes for the better. We invite you to let us help you build a culture of fiduciary excellence to enhance your mission: Investment fiduciary knowledge for you, better results for your mission. Powered by enlightened fiduciaries: YOU.