We recently conducted a survey to find out more about the challenges nonprofits and their investment committees face and opportunities for improvement. Our 2019 Nonprofit Investment Management Survey uncovered some trends around the focus on governance, and as a result, many nonprofits are implementing best practices within their investment committee as means to better achieve their overall missions. One way to achieve those goals is a change-up within the committee itself. 

"I personally have been seeing a lot of turnover in investment committees. There’s a global initiative to increase diversity and inclusion efforts” – Mary Jane Bobyock

Nonprofit News reported that nearly three-quarters of respondents (73%) said that they were likely to add or replace a member of the investment committee in the next 12 months, according to the survey. Driving this is the fact that many respondents say that their investment committees could use more investment experience, as better focus on the overall mission. 

“It is really important to have as much representation from the investment community as you can,” Bobyock said. “It can be all levels and depths of experience. I think it really does help add to the conversation when you have someone who is in line with the mission of the organization and also understanding the mission of the investment performed. I see that happening more and more.”

Knowledge Center Why Nonprofit Investment Committees are Going to OCIO Valuable resources, advice and infrastructure can improve investment committee impact and efficiency

The majority of the survey respondents said that they currently partner with an OCIO, which helps to address the lack of time and resources available for committee members. Twenty percent of the organizations surveyed that they were going to send out a RFP for an outsourced CIO within the next year. 

The research was conducted during the second quarter of 2019, and included 101 surveyed nonprofit organizations from foundations, colleges, universities and more.

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This material represents an assessment at a specific point in time and is not intended to be a forecast of future events, or a guarantee of future results. This information should not be relied upon by the reader as research or investment advice and is intended for educational purposes only.