Nonprofit Investment and Development Solutions, + Website A Guide to Thriving in Today's Economy

ROGER M. MATLOFF, CFM, CIMA®, CAP®, CRPC®, is a senior vice president and institutional consultant at a major financial institution. Working with the team he founded in 1983, Roger creates sustainable strategic solutions for nonprofit organizations around the country. In his current role, he oversees the analytical, investment, and management programs that the team's foundation and endowment clients utilize. In his capacity as a consulting and investment expert, Roger has appeared on national television news programs and been cited in such national publications as the Wall Street Journal and Research magazine as well as numerous international publications focused on serving the nonprofit market.

JOY HUNTER CHAILLOU is a Senior Vice President and Senior Nonprofit Advisor for a major financial institution. In her current role, she serves as an advisor working with nonprofit organizations of all sizes to increase their organizational capacity and help them reach their goals by offering in-depth strategies and tailored solutions, providing them with the knowledge and resources needed to address the challenges they face as they pursue their mission and impact goals. Joy's advice and consultation focus is in the areas of governance, development strategies, staff training, and board education.

Preface: Here We Are

Background: Where We Have Been

Multiple Factors

This Book’s Setup

Acknowledgments

Chapter 1 Philanthropy History and Statistics

American Philanthropy

Examining the Statistics

Summary

Chapter 2 Fiduciary Responsibility

What Is a Fiduciary?

What Are the Duties of the Fiduciary?

Pressure on Fiduciaries from Increased Volatility

Protecting the Assets -- The Prudent Investor

Training and Education of Fiduciaries

Increasing Government Regulation

Protecting the Mission

Effective Use of Professional Consultants

Valuable Resources

End of Chapter Review Questions

Summary

Chapter 3 New Roles for the “New Reality”

The Investment Consultant

The Investment Committee

The Two “F’s”: Fundraising and Finance Collaboration and Leverage

Selecting the “Right” Investment Consultant for Your Organization

The Players on the Team

Investment Policy Statement (IPS)

End of Chapter Review Questions

Summary

Chapter 4 Behavioral Finance

The Psychology of Investing

Behavioral Factors and Investing

Psychology and Decision Making

The Psychology of Group Decisions

Behavioral Finance and Investment Consulting

End of Chapter Review Questions

Summary

Chapter 5 Understanding Risk

The Individual and Risk

Biases

Investment Committee Psychology

Risk and the Fiduciary

Group Dynamics and the Nonprofit

The Theory of Groupthink

Related Decision-Making Problems

Groupthink and Negative Power

The Blind Risk Model

Understanding Individuals – Gathering Information

Assessing the Power on the Investment Committee

Completing the Process

End of Chapter Review Questions

Summary

Chapter 6 Asset Allocation

Asset Allocation Analysis

Types of Risk in Asset Allocation

Risk and Portfolio Performance

Preparing for Asset Allocation Analysis

End of Chapter Review Questions

Summary

Chapter 7 The Investment Policy Statement (IPS)

The Elements of an Investment Policy Statement

The IPS Provides Essential Discipline

UMIFA and UPMIFA

IPS and Investments

The IPS and Asset Allocation

The IPS and Risk, Return, and Money Manager Retention

The IPS and Major Donors

End of Chapter Review Questions

Summary

Chapter 8 Money Manager Selection

The Goal

Outlining the Process

Step 1: The Search

Step 2: The Evaluation

Step 3: The Analysis

Step 4: Selection

End of Chapter Review Questions

Summary

Chapter 9 Dynamic Portfolio Optimization

Before Modern Portfolio Theory (MPT)

Modern Portfolio Theory (MPT)

The Efficient Portfolio

The Mean-Variance Model

Dynamic Asset Allocation and Market Timing

End of Chapter Review Questions

Summary

Chapter 10 Investment Program Analysis

Monitoring Accounts

The Procedure

Assessing Money Managers

The Evaluation

End of Chapter Review Questions

Summary

Chapter 11 Socially Responsible Investing

Using Investments to Generate More than Monetary Gains

The Roots of Socially Responsible Investing

What Exactly Is Socially Responsible Investing?

How Do We Accomplish Socially Responsible Investing?

The Risks of Socially Responsible Investing

Additional Means of Accomplishing SRI

Why Does a Nonprofit Implement an SRI Portfolio?

End of Chapter Review Questions

Summary

Chapter 12 The Changing Landscape for Fundraising

Our New Reality

Donor Motivations

Communication Strategies

Revenue Source Diversification

The Strategic Development Plan

Understanding Donors

Effective Communication Tools

The Case for Support

Measuring Programmatic Impact

The Strategic Development Planning Process

The Importance of Planned Giving As a Strategic Development Tool: Building Endowment with Planned Gifts

Donor Values That Affect Their Legacy Giving

End of Chapter Review Questions

Summary

Chapter 13 The Evolution of Donors – Trends and Truths

Fundraising Is the Lifeblood of Any Charity

The Modern Donor

Transformations in Giving Patterns

Growing the Donor Pool

End of Chapter Review Questions

Summary

Chapter 14 Growing Expectations

Nonprofit Efficiency – Ratings, Ratios Information and Insight

Resources

Two Key Measures of Financial Health

Financial Ratios

Integrity and Credibility

End of Chapter Review Questions

Summary

Conclusion

About the Authors (Roger M. Matloff and Joy Hunter Chaillou)

Index

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