You are the financial manager of a midsize nonprofit that has just received an endowment of a substantial amount from a longtime supporter. The board members are excited because years of effort have gone into seeking this endowment, and they are expecting that the endowment will mean increased financial stability for the nonprofit in the future. The board members have been distressed by money shortages in recent years caused by donor fatigue and the economic downturn. They do not, however, know how an endowment should be managed. A couple of members have knowledge of accounting and auditing, but no one on the board is an investment expert, and the nonprofit has no experience in endowment investment, given that this is the first endowment the nonprofit has received. You, as the financial manager of the nonprofit, have been asked to take on the responsibility of establishing and managing the endowment (a situation not uncommon in small and midsize nonprofits). You are very happy with the infusion of capital as an endowment, but you take on the role of managing the endowment with some trepidation, knowing how unprepared the nonprofit is for this new financial management task. You want to perform well with the endowment for the mission of the nonprofit, but you do not want to take the blame if the endowment does not achieve excellence, despite your best efforts, because of uncontrollable events such as swings in the market and economic fluctuations. What should you take into consideration and what steps should you undertake if you intend to take on responsibility for the endowment in addition to your other duties?

Complete The Financial Manager Takes Steps to Manage a New Endowment Case Study in a Word document.

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