Has your charity considered potential investments?

11 Key Steps for Trustees, 1 Giant Leap for your Charity: Month 4

Month 4 of our 12-month guide for trustees focuses on the key considerations when investing. The decision of how much, when and what to invest in can be a challenging one for trustees. You must think about the current cash demands of the charity, the need for regular income and the desire for capital growth. These factors need to be considered alongside investment risk.

Step 4: Investments

Virtually all not for profits undertake some form of investment. This ranges from large-scale investments by organisations wholly reliant on investment income to the investment of funds that form part of a charity’s reserve buffer. Increasingly, charities are looking to invest funds not just to generate a return, but also to deliver their charitable objectives.

Did you know: Charity sector investments exceed £85bn

As a trustee, you have overall responsibility for the investment of the charity’s funds. This responsibility cannot be delegated. When making investment decisions you should use your skills and knowledge in a way that is reasonable in the circumstance (the ‘duty of care’).  If you can demonstrate that you have considered the relevant issues, taken advice as appropriate and reached a reasonable decision, it is unlikely you will be criticised for your decisions.

Read month 4: Investments


Or if you missed them, you can also read previous editions:

  1. Finding New Trustees
  2. Internal Financial Controls
  3. Collaborative Working and Mergers