Having an endowment which reflects your organization’s values is more important than ever. But does the wealth advisor you’ve chosen match up to those same standards? In today’s business world, it’s essential that companies make sure their investments align with their overall objectives – so take time when selecting a financial partner who appreciates and complies with ethical practices within your organization. In this blog post, we’ll explore some tips to help you find a trusted advisor whose values reflect those of your endowments.
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Define your Nonprofit, Endowment, and Foundation Values
It all starts with core values. The foundation of any endeavor requires establishing and adhering to a set of ideals that guide everything else – this is the key to achieving harmony between principles, objectives, and outcomes.
The first is the commitment to fund endowment funds responsibly and ethically. Funds should be managed in such a way that seeks to protect the endowment funds for the long-term goals of philanthropy and community impact.
Understanding the core values and code of ethics of your nonprofit or foundation will set the standard for how business is done. Your code of ethics must go beyond basic legal requirements to ensure that all relationships are based on mutual respect and trust.
Nonprofits should strive to identify meaningful objectives and measurable outcomes that will generate positive change. Establishing high standards encourages efficient efforts in the present, as well as towards any long-term goals set by foundations or endowments. By connecting today’s actions with tomorrow’s aspirations, you can create a clear pathway for success.
Ultimately, your endowment’s values, as well as your nonprofit or foundation’s, need to be clearly defined and understood so that you can accurately screen prospective investment advisors to work with your nonprofit.
Why Being on the Same Page as Your Advisor is Critical
Whether it’s goal setting, developing business strategies, or financial planning, it’s important to be on the same page as your investment advisor. If you don’t keep up with the plans communicated to you, it could lead to serious financial mistakes.
By understanding their financial recommendation and intentions, you can get a better idea of how they plan to help you reach your foundation’s financial goals quicker and easier. Ultimately, being able to connect with an advisor means more than just getting financial advice; it also creates a sense of trust and opens up possibilities in terms of financial options available – something that is critical when planning out your organization’s future financial success.
This Relationship is Crucial to Building Lasting Relationships
The relationship with your financial advisor is key when it comes to making sure that you have the best and most secure foundation to meet your organization’s financial goals and mission statement.
A CIMA® professional is a type of financial advisor who has a fiduciary duty to ensure that your nonprofit’s investments are taken care of, but also to help make sure that you have a secure relationship to turn to every step of the way. Knowing that you have an expert in the industry who is looking out for your organization’s best interests can give you peace of mind and help you pursue your organization’s goals.
While ensuring that your advisor’s values align with your organization’s mission statement and underlying values is critical, working with a fiduciary advisor goes a step further to ensure your goals are aligned. An investment advisor acting as a fiduciary has a legal obligation to serve the best interests of their clients, avoiding potential conflicts of interest while putting your organization’s best interests first.
Make Sure Your Advisor Understands Your Goals and Risk Parameters
When it comes to your organization’s wealth management needs, communication is a key component. Make sure you are able to clearly express the goals and financial expectations that come with investing. This will ensure that your financial advisor has a clear understanding of exactly what types of strategies they should be utilizing, as well as the level of risk you and your organization feel comfortable taking on.
An experienced advisor should have the skills and knowledge to create an investment portfolio tailored to maximize returns while staying within a reasonable level of risk tolerance. Without this understanding, you may end up making expensive mistakes that put your organization at financial risk. So make sure you spend the time upfront to communicate your organization’s goals and risk parameters effectively.
Choosing an investment advisor is always an important decision, and when it comes to your nonprofit organization, there is an emphasis on the values of prospective advisors. You want to ensure that your values are aligned, and that whoever you decide to work with has you and your organization’s best interests in mind. Ensuring that both of these are aligned, you can begin to work with your advisor to meet your organization’s goals.
For investment and tax strategies catered to nonprofit organizations, contact the Brown | Miller financial advisors in Washington, D.C., to see how they can help your organization. Reach out today.
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