Managing Endowments: Risks, Rewards and Responsibilities

by: Smith and Howard Wealth Management

The SHWM team works with nonprofits, including endowments and foundations, to provide thoughtful, goal-oriented wealth management services. In partnership with Smith and Howard, we are offering our first nonprofit workshop of 2015 on May 19 from 7:30 – 9:30 a.m. at Cherokee Town and Country Club (registration required).

I am pleased to be the moderator for this panel discussion, “Managing Endowments: Risks, Rewards and Responsibilities.” The panelists include:

Nick Djuric – Partner with Sutherland, Asbill and Brennan

Don Bennyhoff, CFA – Senior Investment Analyst at Vanguard
Tommy Allegood – Executive Director of Cobb Community Foundation and Mayor of Acworth

There’s little debate that organizations should have a ‘rainy day’ fund, just like individuals and families.  A cash reserve that can help smooth the ups and downs in a nonprofit’s operations and fundraising is important.  An endowment goes further…it’s making the decision (by donors, the board or both) to build a permanent reserve that will serve as a financial bedrock for the organization.  The income from this bedrock becomes a goose laying golden eggs.  That’s because it does not have to be earned or solicited each year. But, endowments are not appropriate for all organizations, and not everyone loves them.  One argument is that an endowment hinders the charity’s mission critical work today, for the promise of a future that is uncertain.

Our panelists will explore the risks, rewards and challenges of endowments from their perspectives as nonprofit leaders, an attorney for nonprofits and as an investment analyst. It promises to be an informative and interactive session. Registration is open to nonprofit leadership and board members / investment committee members by calling Misty Olive at 404-874-6244 or emailing her a [email protected].