What Can a Financial Advisor do for a Non-Profit?Submitted by JMB Financial Managers on September 18th, 2017
Most people, wealthy or not, make an effort to support a philanthropic cause, be it big or small. Whether that be through donations, volunteering time, or joining a charity’s board, it is important that the charities individuals choose to support are utilizing resources to make the most of what they are given.
One of the resources that many non-profits don’t think about is the help of a financial advisor. Especially during difficult economic times, it is wise for a non-profit to have the knowledge and assistance of a financial advisor to help conserve their endowment.
As a non-profit, hiring a financial advisor could make handling your endowment less intimidating, as you would be sharing the financial management responsibility of your endowment with someone else. That being said, it is important when choosing an advisor to make sure that their values and experience line up with what the organization is aiming to accomplish.
Why Do Non-Profits Need Financial Advisors?
A financial advisor can help with some of the financial instability that comes with running a non-profit. The loss of grants or lack of donations can influence a non-profit’s ability to meet goals. Year to year fluctuations may be hard to cope with if you lack the knowledge needed to take on such financial situations, a financial advisor would provide the assistance to meet these problems head on.
Running a non-profit is time consuming, and there are never enough hours in the day to accomplish all that needs to be done. Delegating the financial responsibility to a financial professional is just another way you to focus more time and energy into fulfilling the organization purpose.
So what can a financial advisor do for a non-profit? One thing would be for the financial advisor to be working to grow and protect the funds in which the charity needs to support their mission. This frees board members and volunteers to focus on raising funds, recruiting new supporters, marketing, and accomplishing the mission of the charity.
Comprehensive Financial Planning for Non-Profits
Much in the same way a financial advisor would for any individual, an in-depth comprehensive financial plan can be created for a non-profit. A comprehensive financial plan made for a non-profit takes into consideration the mission of the organization as well as their values and goals to create a plan that helps them get there.
No organization is the same, meaning the process used to create a plan that best fits a non-profit’s needs will be unique to their situation and goals, there is no one-size fits all plan to financial success.
In addition to creating a plan for the financial success of the organization as a whole, a financial advisor can also help employees plan for their personal futures by providing them with retirement solutions.
Planning for the Future
As a non-profit, sitting down with a financial advisor may be eye opening. A financial advisor may be able to point out unnecessary expenditures and help you truly understand where your money is going and if it is being spent in an efficient manner that is helping you to fulfill the purpose you set out to serve. If it’s not, a financial advisor can work with you to create a financial roadmap of sorts to help you be more financially responsible.
Non-profits may find that hiring a financial advisor is just the move they need to make to take their organization to the next level. For more information about how JMB Financial Managers can assist your non-profit organization, read this related post: 15 Ways a Financial Advisor Can Assist a Nonprofit.
If you are ready to schedule an initial consultation and find out how JMB Financial Managers can help your organization, click the button below.
About the Author
Jack Brkich III, is the president and founder of JMB Financial Managers. A Certified Financial Planner, Jack is a trusted advisor and resource for business owners, individuals, and families. His advice about wealth creation and preservation techniques have appeared in publications including The Los Angeles Times, NASDAQ, Investopedia, and The Wall Street Journal. To learn more visit https://www.jmbfinmgrs.com/.