Key points to help you make decisions about your charity’s investments:
All the charity trustees are collectively responsible for the charity’s investments and should have access to investment valuations and reports (not just the Treasurer or Finance/Investment Committee).
Understand what, if anything, your governing document says about investments and any legislation relevant to your charity’s legal form.
You must make sure that any investment activities are in the best interests of the charity, weighing up the pros and cons before making a decision that could significantly impact the running of the charity.
Your reputation is an asset to be protected. Charity trustees have a duty to act with care and diligence to protect a charity’s assets and reputation.
Consider what help or advice you need to support your charity in making decisions about its investments.
It’s good practice for charity trustees to record policy decisions, keep them under review and include the information in your annual report and accounts.
Consider how you connect your investments with your charity’s purposes and delivery of your strategy.
Understand there are different kinds of returns, measured in different ways: financial, social, environmental or otherwise – think about what is right for your charity.
You may have power to delegate investment decisions to an investment manager, but you retain overall responsibility.
Stay up to date with investment developments through events, seminars and other training.