An Effective Investment Policy Statement

Investing reserves on behalf of a foundation, charity or non-profit organisation is a tremendous privilege, and one that comes with significant responsibility. It requires a fiduciary mindset, a willingness to thoroughly address all aspects of stewardship, and a robust investment governance framework. It also requires the organisation to understand how its reserve assets serve its mission, and requires sound processes and a carefully considered investment plan. An effective investment policy statement fortifies these requirements by drawing them together into a single cohesive document. This paper is an extract from Koda’s ‘The Investment Policy Statement Handbook’ and explores the key issues and benefits for nonprofit organisations in preparing, implementing, maintaining and complying with an effective investment policy statement.