Non-Profit Fiduciaries

Are you a committee member, trustee or board member? If so...

You've been entrusted with managing someone else's money. As a Fiduciary, the most critical responsibility you have is to manage the prudent investment process. At Personal Wealth Management, we are dedicated to helping you doing just that. View our video here for more information.

Whether you are an investment committee member, trustee, or board member, as an investment steward, you share in the legal responsibility for managing investment decisions.

  • What guidelines do you follow?
  • What types of investments are acceptable?
  • How do you define investment success?
  • Do you face any conflicts of interest?
  • What is your investment philosophy?

If a fiduciary breaches his or her duties, they may be held personally liable.

Many fiduciaries are ill-equipped to deal with these challenges:

  • Do you have the investment expertise?
  • Are you feeling pressure from the board?
  • Do you know the legal standards fiduciaries are held to?
  • Are there conflicts of interests and self-entitlements within your organization?

Courts have ruled that fiduciary responsibilities are equivalent to those of a professional investor and if a fiduciary breaches his or her duties, they may be held personally liable. The legislation that enforces this fiduciary standard of care are as follows:

  • UPMIFA – Uniform Prudent Management of Institutional Funds Act (impacts foundations, endowments, and government-sponsored charitable institutions)                     
  • UPIA – Uniform Prudent Investor Act (impacts private trusts)

What does Personal Wealth Management bring to the table?

We have a combined 125 years of specialized investment management experience providing independent and unbiased advice. We can provide the knowledge and the ability to implement appropriate policies and procedures to manage the fiduciary standard of care. Most importantly, by hiring Personal Wealth Management, we will help you satisfy and adhere to the seven common practices known as “Global Fiduciary Precepts.”

  • Know standards, laws, and trust provisions
  • Diversify assets to specific risk/return profile of client.
  • Prepare Investment Policy Statement.
  • Use “prudent experts” (for example, an investment manager) and document due diligence.
  • Control and account for investment expenses.
  • Monitor the activities of “prudent experts”.
  • Avoid conflicts of interest and prohibited transactions

The next step

If you are an investment steward for a non-profit please allow us the opportunity to sit down with you and provide you with an assessment where we can:

  • Help ensure appropriate documentation is maintained
  • Review asset allocation strategies
  • Review due diligence procedures
  • Spending needs analysis
  • Donor Restricted Funds report
  • Comprehensive expense analysis

With the assessment, we can offer our four step investment consulting services:

  • Identifying financial objectives – Realistic investment objectives combined with the flexibility to make mid-course adjustments can, in the long run, assist your organization in meeting its goals and objectives.
  • Determining asset allocation – Based on your investment policy statement, we will work with you to design an asset allocation strategy that is tailored to your organization’s needs.
  • Manager evaluation and selection – Quantitatively, performance is evaluated on an absolute and risk-adjusted basis over multiple time periods. Qualitatively, our goal is to safeguard you from investment processes lacking vigor, definition or implementation.
  • Portfolio monitoring and reporting – The portfolio review addresses the question “Are the goals and objectives of the organization being met?

Don’t leave yourself open to personal liability! Contact us today to setup an appointment where we can discuss and address your concerns.


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