Our Evidence-Based Approach to Investing for Nonprofits

At Plentiful Wealth, we know that your investments are more than just numbers…they’re the fuel for your future capacity. Every dollar preserved through prudent investment management for nonprofits is a dollar that can advance your mission. We’re your partners in effective stewardship, helping you navigate the unique challenges of nonprofit investing with clarity and confidence.

Our Nonprofit Investing Philosophy

We take an academic, research-based approach to portfolio management by considering a variety of factors when building portfolios.

When it comes to investing for nonprofits, ultimately, we want to build the right mix of risk, returns, and income generation for your organization. Our nonprofit investing philosophy is grounded in decades of academic research and real-world experience managing nonprofit portfolios.

Core Investment Principles

Markets are Efficient

Expenses Matter

Market Timing is Impossible

Diversification Works

See how much difference expenses matter to YOUR endowment

One Approach, Built Around Your Investment Policy Statement

How We Build Portfolios

Every portfolio starts with your Investment Policy Statement. We build it from low-cost, broadly diversified exchange-traded funds, and the same approach applies whether you hold $500,000 or $25 million. What you get:

  • Rock-bottom expenses (typically below 0.10% fund costs)
  • Diversification across thousands of companies
  • Daily liquidity for all investments
  • Rebalancing when an allocation drifts outside the bands in your IPS — reviewed monthly, not on a calendar
  • Alternative investments only where your IPS permits them, with the costs and liquidity trade-offs spelled out first

Screens Configured to Your Values

If your board wants the portfolio to reflect the organization’s values, we can apply screens. What they exclude is your call, written into your IPS, and the services are the same either way:

  • Direct indexing lets us exclude specific companies or industries your board names
  • Screens can be as broad or as narrow as your mandate requires
  • No screens applied unless your IPS calls for them
  • Daily liquidity for all investments

Note: screened portfolios usually carry higher internal expenses. We show you the difference before you decide.

Our Investment Process for Nonprofit Clients

Discovery and Assessment

We begin by understanding your organization’s unique circumstances:

  • Current and future funding needs
  • Risk tolerance and time horizons
  • Spending policies and income requirements
  • Board governance and investment committee structure
  • Your values and restrictions that guide investment choices
  • Your current portfolio allocation

Investment Policy Development

Together, we create or update your Investment Policy Statement (IPS), documenting:

  • Return objectives and Risk Parameters
  • Asset allocation targets and rebalancing triggers
  • Permitted investments and restrictions
  • Performance benchmarks, including selecting appropriate benchmarks
  • Roles and responsibilities, including delegation of investment discretion

Portfolio Construction

Based on your IPS, we build a portfolio using:

  • Low-cost, broadly diversified index funds and ETFs
  • Strategic asset allocation tailored to your needs
  • Innovative approaches like direct indexing, where appropriate
  • Alternative asset classes like private equity and hedge funds, where appropriate

Ongoing Management and Monitoring

Your portfolio receives continuous attention through:

  • Rebalancing when allocations drift outside the bands in your IPS, reviewed monthly
  • Regular performance reporting and benchmarking
  • Annual IPS review and updates
  • Proactive communication about market conditions and portfolio changes
  • Educational resources for board, leadership and committee members

Frequently Asked Questions

How do you keep investment costs so low?

We primarily use institutional-class index funds and ETFs that have expense ratios often below 0.10%. We don’t use expensive actively managed funds or pay commissions to brokers. Our fee structure is transparent and aligned with your success.

How often do you make changes to our portfolio?

We rebalance when an allocation drifts outside the bands written into your IPS. We check drift monthly, but we don’t trade on a calendar and we don’t try to time the market. Most months, the only activity in your account will be rebalancing trades, if any.

Can we access our funds if we need them?

Your investments are in liquid securities that can be sold any day the market is open. Funds are typically available within 2–3 business days, and your investment account can be linked directly to your bank account for easy transfers. If your IPS permits illiquid alternatives, we explain the lock-up terms before any commitment is made.

How do you handle market downturns?

We prepare for downturns before they happen through proper diversification and asset allocation. During market declines, we systematically rebalance, selling assets that have held up better to buy those that have declined, positioning your portfolio for the decades to come.

What if our board wants to exclude certain investments?

Absolutely. Using direct indexing, we can exclude specific companies, entire industries, or apply screens based on your organization’s values and mandate. The screens are yours to set, and the service is the same either way.

Do you provide education for our board, leadership, and investment committee?

Yes. We offer complimentary educational sessions for your board and committees, provide regular market updates in plain English, and are always available to explain investment concepts and answer questions. We also offer a number of free resources on our resource page. An informed board makes better decisions.

How do we know if our investments are performing well?

We provide clear monthly reports showing your performance against relevant benchmarks, both short-term and since inception. We’ll help you understand what’s driving performance and whether your portfolio is on track to meet your long-term objectives. Beyond our monthly reporting, your organization has 24/7 access to your portfolio via our client portal.

What makes your approach different from other advisors?

We’re built specifically for nonprofits and we consider ourselves an extension of your leadership team. We’re partners in advancing your mission. We understand your unique needs, from spending policies to UPMIFA compliance. We’re educators first, advisors second. Our goal is to strengthen the entire nonprofit sector by helping organizations like yours preserve and grow resources for your mission.

Can small nonprofits afford professional investment management?

Yes. We work with organizations starting at $500,000 in investable assets, and the approach is the same at every size. Our fee structure is published, so you can see exactly what it costs before you ever call.

Ready to explore how professional investment management can strengthen your organization’s financial future?
Schedule Your Complimentary Consultation