Investment policy
=================

Investment policy: [ORGANIZATION NAME]

Approved by the board on: [DATE]

Next review: [DATE, AT LEAST ONCE A YEAR]

1. Purpose and scope

This policy governs how [ORGANIZATION NAME] invests the following funds:

| Fund | What it's for | Time horizon | Donor restrictions? |
|---|---|---|---|
| [FOR EXAMPLE: OPERATING RESERVE] | [PURPOSE] | [SHORT / MEDIUM / LONG] | [NONE / DESCRIBE] |
| [FOR EXAMPLE: ENDOWMENT FUND NAME] | [PURPOSE] | [SHORT / MEDIUM / LONG] | [NONE / DESCRIBE, WITH GIFT AGREEMENT DATE] |

Where a gift agreement sets different terms, the gift agreement governs for that fund.

2. Objectives

For each fund, the board's objectives are:

- [FUND]: [FOR EXAMPLE: KEEP THE MONEY AVAILABLE AND STABLE / PRESERVE PURCHASING POWER OVER TIME / PROVIDE A STEADY AMOUNT FOR SPENDING EACH YEAR]

3. Risk

The board accepts the following level of risk for each fund, having considered the factors required by [STATE] law:

- [FUND]: [DESCRIPTION OF ACCEPTABLE RISK, AS DECIDED BY THE BOARD]

4. Permitted and prohibited investments

- Permitted: [TYPES OF INVESTMENTS THE BOARD HAS APPROVED]
- Prohibited: [TYPES THE BOARD HAS RULED OUT, INCLUDING ANY FOR MISSION OR VALUES REASONS]
- Any investment not listed needs approval from [THE BOARD / THE FINANCE COMMITTEE].

5. Allocation and diversification

| Fund | Asset type | Target | Allowed range |
|---|---|---|---|
| [FUND] | [ASSET TYPE] | [PERCENT] | [MINIMUM] to [MAXIMUM] |

If a fund moves outside its range, [ROLE] will rebalance within [NUMBER] days or report to the board.

Any decision not to diversify a fund will be recorded with the reasons and reviewed at least once a year.

6. Spending from endowment funds

Appropriations for spending from endowment funds will be decided by [THE BOARD] each year, considering the factors required by [STATE] law and the terms of each gift. The decision and the reasons will be recorded in the minutes. [STATE ANY SPENDING RULE THE BOARD HAS ADOPTED, OR "NONE ADOPTED"]

7. Roles

| Who | Responsibility |
|---|---|
| Board | Approves this policy, the objectives and any changes; receives reports; approves spending from endowment funds |
| [FINANCE OR INVESTMENT COMMITTEE] | Oversees the investments within this policy; recommends changes; selects and reviews outside managers |
| [TREASURER] | Reports to the board; keeps records; signs transfers within approved limits |
| Outside manager or adviser, if any | Invests within the written terms of the delegation; reports as agreed |

8. Delegation to outside managers

If the board delegates management of any fund, it will:

1. select the manager with care, including checking their independence and any conflicts of interest;
2. set the scope and terms in writing, including fees, and keep them consistent with the fund's purposes; and
3. monitor the manager's performance and compliance with those terms at least [FREQUENCY].

The manager is accountable to [COMMITTEE OR BOARD] and must report [WHAT AND HOW OFTEN].

Selection process: [HOW CANDIDATES ARE FOUND, COMPARED AND APPROVED]

9. Monitoring and reporting

- [ROLE] will report to the board at least [QUARTERLY / TWICE A YEAR] on each fund's value, performance against its objectives, allocation against its ranges, fees paid, and any exceptions.
- Costs will be reviewed to make sure they are reasonable for the services received.

10. Proxy voting

Votes on shares held in the funds will be [CAST BY THE MANAGER UNDER THESE GUIDELINES: (GUIDELINES) / DECIDED BY (COMMITTEE)].

11. Conflicts of interest

Anyone with a role under this policy follows the charity's [conflict of interest policy](/resources/templates/conflict-of-interest-policy) and discloses any interest in a manager, adviser or investment.

12. Review

The board will review this policy at least once a year, and whenever the charity's finances or circumstances change significantly. Changes take effect when approved by the board and recorded in the minutes.

| Date reviewed | Changes | Approved by |
|---|---|---|
| [DATE] | [CHANGES, OR "NONE"] | [NAME] |