A community foundation has investment policies that include asset allocation guidelines, a spending policy and criteria for measuring investment policies

Stewardship and Accountability - Standard IV. Part H.01

The Standard

A community foundation has investment policies that include asset allocation guidelines, a spending policy and criteria for measuring investment policies

Underlying Rationale

The effective execution of its stewardship responsibility is at the core of the trust and confidence a community will have in its community foundation. Prudent management of donors' contributions ensures donors' objectives and advances community quality of life.

Potential Outcomes

1. Preserve or enhance donor intent by maintaining or exceeding the "purchasing power" of original gift amounts over time.
2. Strengthen the confidence donors and prospective donors have in the foundation.
3. Attract additional and larger gifts.
4. Attract referrals of new donors.
5. Make year-to-year grantmaking levels more predictable.
6. Dampen the effect of volatile periods in the financial markets and protect against downside losses in a falling market.