According to the poll, the majority (76%) of nonprofit portfolios are governed by an investment committee that meets, on average, about four timesper year. Additionally, 41% of participating organizations reported using an investment consultant, and 18% use an investment outsourcing partner. About one-quarter (23%) of organizations also reported having full-time internal investment staff; however, the average size of such staffs equates to less than one person.
A nonprofit may create an investment committee to oversee investments. There are underlying principles that should guide the work of all committees. This article suggests practices that investment committees of large and small organizations should consider, identifies what makes an investment committee
effective, and describes generally the legal framework governing the investment committee’s decisions.