The right investment strategy for charities in the credit crunch
31 Oct 2008
Knowledge Peers’ expert panellists have been putting their collective expertise to work in debating one of the most pressing issues facing the not-for-profit sector: what is the right investment strategy for charities, in the light of the current financial situation?
All panellists agreed that the current climate prioritises a cautious investment strategy, and provided a number of practical suggestions, including:
- Making investment policy part of working capital management, with working capital management and clarity on liquidity taking priority over interest rates
- Reducing risk by avoiding the stock market, overseas investments and any other opaque or exotic forms of investment, and by splitting funds between a number of institutions
- Strengthening governance, ensuring that the Board has all the expertise it needs to make appropriate financial decisions, and that communication between the decision-makers is frequent and effective
Knowledge Peers is a membership organisation for people who run growth businesses in the UK. We enable our members to tackle pressing business challenges by learning directly from the experiences of their peers. Our comprehensive research programme offers concise, practical guidance via video interviews and interactions with experienced executives and specialist advisors.
For more information, please contact the team at info@knowledgepeers.com or +44 (0)207 831 0076.
