Blog

1. What should I consider when choosing an investment provider? 

Selecting the right investment provider is a critical step in protecting and growing your nonprofit’s resources. Here are six essential criteria to consider:

• Values Alignment – Ensure the provider shares and supports your organization’s mission and values.
• Proven Track Record – Look for a history of reliable performance and client satisfaction.
• Historical Performance – Evaluate how their investment strategies have performed over time, especially during market fluctuations.
• Investment Philosophy – Understand their approach to risk, asset allocation and decision-making.
• Service Offerings – Consider the range and quality of services available, including reporting, education and support.
• Fiduciary Responsibility – Choose a provider that upholds fiduciary standards and puts your interests first.

2. What are they key components of an Investment Policy Statement (IPS)? 

An IPS serves as your roadmap for investment decisions and helps maintain discipline during market volatility. A well-crafted IPS includes:

• Mission & Investment Philosophy – Defines the nonprofit’s purpose and strategic objectives.
• Investment Objectives – Establishes specific financial goals and risk tolerance levels.
• Distribution Policy – Details guidelines for fund distributions to maintain financial stability.
• Strategic Asset Allocation – Outlines target asset mix and diversification strategy.
• Rebalancing Policy – Provides guidelines for maintaining asset allocation over time.
• Responsibilities & Roles – Defines the roles of key stakeholders, including the investment committee, OCIO and other fiduciaries.

For more on the importance of an IPS, read our recent post: Spring Clean Your Investment Strategy – The Role of an IPS.

3. What's the difference between mission, investment philosophy and invesment objectives? 

Many nonprofit institutions manage multiple pools of assets, each with its own purpose, time horizon and risk profile. Understanding these distinctions is important:

• Mission & Investment Philosophy – Describes the “why” behind your investing approach and aligns your investments with your organizational purpose.
• Investment Objectives – Specifies financial targets, risk tolerance and timelines for each fund.

For example:

• Endowment Fund – Perpetual time horizon, higher risk tolerance and specific spending policy requirements
• Intermediate Fund – Typically a 5 to 10-year time horizon, moderate risk tolerance and annual liquidity needs
• Operating Assets/Building Fund – Short-term time horizon, low risk tolerance and a strong focus on liquidity

Each fund should have clearly defined goals. Be specific about what you're trying to accomplish and tailor your IPS accordingly.

4. My provider combines all my funds into one account. Is that okay?

We recommend working with an investment provider that offers sub-accounting capabilities. This allows you to segregate funds based on their purpose, such as endowment, capital projects or operating assets, so you can track performance and compliance more easily.

5. How often should I update my IPS? 

You should revisit your IPS whenever there is a significant change in:

• Your organization’s goals
• The time horizon for your funds
• Your risk tolerance or financial needs

At HighGround, we monitor portfolios continuously and adjust strategies as needed to stay aligned with your IPS and evolving priorities.

6. How do we manage IPS updates with rotating board leadership?

Consistency is key. At HighGround, we’ve found that ongoing communication between nonprofit leaders, board members and your investment provider is essential. Proactive collaboration ensures new leadership understands your IPS, stays aligned with long-term strategies and avoids unnecessary changes.

7. Why is values alignment with your investment provider important?

Values alignment isn’t just a nice to have, it’s foundational. An investment provider who understands and supports your mission is better equipped to serve as a true partner. They should function as an extension of your team, helping you develop your IPS and accomplish your investment objectives so that you can maximize the impact of your mission.

For inquiries or assistance with your investment strategy, contact HighGround at 214.978.3300 or info@highgroundadvisors.org. We're here to support your nonprofit's long-term success.