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.

Safety, liquidity, and ROI are well understood investment risk/reward criteria that are stable in concept, but which fluctuate based on the organization’s risk tolerance (conservative vs. aggressive). Mission aligned investing (MAI) is a “thematic” investment concept open to very broad interpretation, beliefs, and applications. These aspects of MAI become even more complicated when you layer in conservative vs. aggressive methodologies.