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
- Nonprofit Volunteer Risk Management and Insurance Review
- Nonprofit Donor Acknowledgment and Gift Substantiation Audit
- Nonprofit Capital Campaign Management and Compliance
Related Financial Management Checklists
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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 does the Nonprofit Investment and Endowment Management Review cover?
This checklist covers 27 inspection items across 6 sections: Investment Policy Statement, Portfolio Performance Review, Endowment Compliance, Spending Policy, Investment Committee Oversight, Investment Reporting. It is designed for nonprofit operations and compliance.
How often should this checklist be completed?
This checklist should be completed annually (quarterly investment committee review). Each completion takes approximately 3-4 hours.
Who should use this Nonprofit Investment and Endowment Management Review?
This checklist is designed for CFO / Board Treasurer / Investment Committee professionals in the nonprofit industry. It can be used for self-assessments, team audits, and regulatory compliance documentation.
Can I download this checklist as a PDF?
Yes, this checklist is available as a free PDF download. You can also use it digitally in the POPProbe mobile app for real-time data capture, photo documentation, and automatic reporting.