Nonprofit Investment and Endowment Management Review
Nonprofits with endowments or investment portfolios have significant fiduciary responsibilities under state prudent investor laws and UPMIFA. This annual review ensures investment management meets legal and policy standards.
- Industry: Nonprofit
- Frequency: Annually (quarterly investment committee review)
- Estimated Time: 3-4 hours
- Role: CFO / Board Treasurer / Investment Committee
- Total Items: 27
Investment Policy Statement
Review investment policy statement.
- Investment Policy Statement (IPS) reviewed and updated within last 3 years?
- Current IPS approved by full board?
- Asset allocation targets in IPS appropriate for time horizon and risk tolerance?
- ESG/SRI investment criteria addressed in IPS if applicable?
- Liquidity requirements for operations addressed in IPS?
Portfolio Performance Review
Review portfolio performance.
- Portfolio performance compared to benchmark(s) per IPS?
- Actual asset allocation compared to IPS targets?
- Portfolio rebalanced when allocation drifted beyond IPS tolerance bands?
- Investment manager or advisor performance reviewed against IPS criteria?
- Investment management fees reviewed for reasonableness?
Endowment Compliance
Verify endowment compliance.
- Donor fund agreements reviewed to ensure compliance with donor restrictions?
- Underwater endowment funds identified and spending policy applied per UPMIFA?
- Endowment spending policy applied consistently to all endowment funds?
- All donor-imposed investment restrictions on endowment gifts honored?
Spending Policy
Review spending policy compliance.
- Spending rate appropriate for long-term preservation of purchasing power (typically 4-5%)?
- Annual distribution calculation per IPS method (rolling average, total return)?
- Endowment distributions incorporated in annual budget?
- Payout from each endowment fund tracked against restrictions?
Investment Committee Oversight
Verify investment committee function.
- Investment committee meeting at least quarterly?
- Investment committee meeting minutes maintained?
- Investment committee reporting investment performance to full board at least annually?
- Investment advisors or managers operating under written agreement?
Investment Reporting
Prepare investment reporting.
- Form 990 Schedule D investment and endowment data prepared accurately?
- FASB ASC 958-320 investment fair value disclosure in financial statements current?
- Reports provided to major endowment donors on fund performance?
- Annual investment performance summary presented to full board?
- Investment account statements available for annual audit?
Related Nonprofit Checklists
- Nonprofit Accounts Payable and Disbursement Controls
- Nonprofit Payroll Processing and Compliance Review
- Nonprofit Restricted Fund Management and Release
- Nonprofit Social Enterprise and Earned Revenue Compliance
- Nonprofit Executive Director Annual Performance Evaluation
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- Nonprofit Donor Acknowledgment and Gift Substantiation Audit
- Nonprofit Capital Campaign Management and Compliance
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Why Use This Nonprofit Investment and Endowment Management Review?
This nonprofit investment and endowment management review helps nonprofit teams maintain compliance and operational excellence. Designed for cfo / board treasurer / investment committee professionals, this checklist covers 27 critical inspection points across 6 sections. Recommended frequency: annually (quarterly investment committee review).
Frequently Asked Questions
What is a Nonprofit Investment and Endowment Management Review?
A Nonprofit Investment and Endowment Management Review is a standardized inspection form used by cfo / board treasurer / investment committee to ensure consistent nonprofit operations. It contains 35 inspection points organized into 6 sections. FREE nonprofit investment management checklist PDF. Annual endowment and investment portfolio review covering investment policy statement, UPMIFA compliance, spending policy, investment committee oversight, ESG considerations, and Form 990 Schedule D investment reporting. Download FREE template now.
How often should I use this nonprofit checklist?
This checklist is designed to be completed annually (quarterly investment committee review). Regular use ensures compliance with industry standards and helps identify issues before they become problems.
Can I download this Nonprofit Investment and Endowment Management Review as a PDF?
Yes, you can download this checklist as a FREE PDF for printing or offline use. The checklist includes 35 fields across 6 sections and typically takes 3-4 hours to complete.
What compliance standards does this checklist cover?
This checklist follows industry best practices for nonprofit operations to help maintain quality and safety standards.
How do I complete this nonprofit inspection checklist?
Begin by completing the header fields for Organization Name, Annual Review Date, CFO / Treasurer Name, and Total Investment Portfolio Value ($). Work through each of the 6 sections, marking items Yes or No as applicable. Finally, complete the footer fields and add your signature. The entire process takes approximately 3 to 4 hours.
What are the key sections in this nonprofit checklist?
This nonprofit checklist is organized into 6 key sections: Investment Policy Statement, Portfolio Performance Review, Endowment Compliance, Spending Policy, Investment Committee Oversight, Investment Reporting. Each section contains specific inspection points that cfo / board treasurer / investment committee must verify. The structured layout ensures nothing is missed during nonprofit inspections and makes the process efficient, typically taking 3-4 hours to complete.
Who should use this Nonprofit Investment and Endowment Management Review?
This checklist is primarily designed for cfo / board treasurer / investment committee working in nonprofit operations. However, it is also valuable for quality assurance teams, safety officers, compliance managers, and supervisors who need to verify that nonprofit standards are being met. Organizations of all sizes can benefit from using this Nonprofit Investment and Endowment Management Review to maintain consistency and accountability.