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![TEMPLATE: Current Operating and Intermediate Funds Cash Management Guidelines [SUBSCRIBERS-ONLY]](https://images.squarespace-cdn.com/content/v1/5e6ccadfb4659c1d51df14d5/dc57af28-1bb6-4ba4-96ab-72152463dfad/money-2724245_1920.jpg)
TEMPLATE: Current Operating and Intermediate Funds Cash Management Guidelines [SUBSCRIBERS-ONLY]
This Cash Management Guidelines template is designed to help your organization set targets the management of both current operating funds and intermediate funds, establish investment guidelines consist with your organization’s cash management needs.
Q&A #159 – Should a nonprofit hire an investment advisor?
While nonprofit organizations are not legally required to use a professional investment advisor to help guide the organization with their investment management, most nonprofits correctly choose to work with a professional investment advisor. Delegating management of the investment portfolio to Board members is not a wise choice because this unnecessarily exposes the organization and its Board members to fiduciary risks related to potential compliance failures and performance shortfalls.
![How Intermediate Cash Fund Pools Support Long-Term Investment Portfolios [SUBSCRIBERS-ONLY]](https://images.squarespace-cdn.com/content/v1/5e6ccadfb4659c1d51df14d5/1679405926502-PJHQWA1RBYIN3LWQEPOZ/reservoir-ge08373ff9_1920.jpg)
How Intermediate Cash Fund Pools Support Long-Term Investment Portfolios [SUBSCRIBERS-ONLY]
Nonprofit organizations should expand their cash management policies and procedures to include provisions for establishing and maintaining intermediate cash fund pools. This will not only enhance protection and management of operating (short-term) cash funds, but also act as a conservative buffer for long-term investment strategies, allocation targets, and portfolio risk management.
![Aligning Investing Purpose to Institutional Mission and Culture [SUBSCRIBERS-ONLY]](https://images.squarespace-cdn.com/content/v1/5e6ccadfb4659c1d51df14d5/1695078743847-JHV3GVLD4SYG6VDZ7FPT/directory-235079_1920.jpg)
Aligning Investing Purpose to Institutional Mission and Culture [SUBSCRIBERS-ONLY]
An increasing number of nonprofit organizations are implementing mission aligned investing and this approach may soon become an expected best practice. Core investment acumen will always be focused on safety, liquidity, and return on investment (ROI), balancing the risk/reward of these three key investment pillars. However, many nonprofits with investable funds now consider mission aligned investing as an important fourth pillar of their investment strategy.
The Importance of Operating and Intermediate Cash Management Target Policies
Establishing operating and intermediate cash management target policies will provide many benefits. This simple but often overlooked cash management best practice will augment internal accounting controls, boost cash management awareness, and enhance perceptions that nonprofit organization management systems are significant and robust.
![Investment Committees Should Be About Stewardship and Not Just Market Performance [SUBSCRIBERS-ONLY]](https://images.squarespace-cdn.com/content/v1/5e6ccadfb4659c1d51df14d5/1707310888522-NFQ57145HZGI112G3R9W/jametlene-reskp-3Dtu6_XfqIk-unsplash.jpg)
Investment Committees Should Be About Stewardship and Not Just Market Performance [SUBSCRIBERS-ONLY]
Investment committees are often judged by how well the investment portfolio performed as compared to the market. However, investment committee responsibilities are much broader than just monitoring market performance. Nonprofit organizations will be better off if they design and focus investment committee protocols, policies and working rules around the primary role of stewardship of the organization’s long-term investment assets.