Association Executive - January/February 2008 - (Page 12)

“ Association Management Software Web & Graphic Design Endowment Management continued from page 11 investment policy. Currently, few not-for-profits take this preliminary step before hiring managers, therefore individual managers hired by the trustees are under no obligation to know how the balance of the portfolio is invested and few ever inquire. An advisor can have an extremely positive impact on the portfolio by modeling out various asset mixes and discussing them with the trustees. Educating the trustees on possible risks and returns associated with each asset class can minimize surprises once the portfolio achieves the returns predicted by the modeling. Manager Selection: Typically, this is the step most not-for-profit boards immediately start with and spend the most time on. When a board has one or more trustees with investment experience it is common that the old boys network will come into play. The trustees rely on their own experience and circle of friends and business colleagues to find managers for the endowment. Often this results Affini iscape’s passionate customer e ® s Keep it simple. [ I N T E G R AT E ] easy-to-use website and d 800.644.9060 www.afﬁniscape.com technologiesfor a free demo. de managing h Call us today h made l i have my association much si simpler. As a result, I have moreassociation does s simplify the way your time to focus on serving our members’ needs and n technology replaces outdated systems and business. Our integrated, state-of-the-art processes, and we’ll give you innovative ideas fulfilling the vision and mission of f Afﬁniscape’s comprehensive online solutions our association. They have the bes r best tools out there to run an association effectively and efficiently. Website Content Management Event Management Training & Customer Support Targeted Email Marketing Membership Management that grow membership and generate revenue. Wendy W. Kavanagh, CAE Real-time Payment Af nity Programs Executive DirectorManaged Career Processing Center Services Georgia Society of Association Exec in good managers in different asset classes being employed. One danger with this approach is that it can result in managers being hired because of friendships, alumni connections, or other subjective reasons. If you limit the search for managers to people you know personally, then by definition you are eliminating thousands of good managers simply because you don’t know them. It is important to consider an array of managers who will provide the most objective advice and the best growth for your endowment. Also, a manager might be hired in an asset class the portfolio does not warrant, such as convertible securities, simply because the manager is a well-known and comfortable entity. Managers should be chosen to fit the pre-determined asset classes, not the other way around. Advisors bring a unique perspective to manager selection as they are third-parties working toward the best interests of the not-for-profit and will help them select managers among the various asset classes to get the right mix for the endowment portfolio. Performance Measurement: It is important to routinely review the portfolio to ensure you are meeting 12 ASSOCIAT IO 358235_Affiniscape.indd N1EX EC U T IV E JANUARY/FEBRUARY 2008 12/4/07 11:26:29 AM http://www.affiniscape.com

Table of Contents Feed for the Digital Edition of Association Executive - January/February 2008

Association Executive - January/February 2008 Contents From the CEO Good Governance Practices for 501(c)(3) Organizations A New Model: Helping Smaller Not-For-Profits with Their Endowment Management Inside NYSAE Book Beat Too Much of a Good Thing? Enhanced Form 990 Disclosures and Their Impact 7 Myths about Financial Planners An Executive's Guide to Responding to Third-Party Subpoenas Relationship Selling: Maximize Your Talk, Time & Tech to Keep Your Connection Strong Save the Dates Index of Advertisers

Association Executive - January/February 2008

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