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Charitable investments

Investments are a key component of many charity’s financial models. The potential returns could allow you to address funding shortfalls and help you to achieve your charity’s objectives.

A financial planner can advise your trustee board, recommending a suitable portfolio that helps your charity to achieve its objectives.

How we can help you

Regardless of the experience of your trustees, we can help you. As chartered independent financial planners, we have access to the whole market and can build an investment strategy tailored to your charity’s objectives and preferences.

Our specialist team understand the responsibilities charity trustees have under the Trustee Act 2000, which include the need to set clear objectives and choose appropriate performance, risk and time benchmarks for fund managers. Our services include:

  • agreement of financial goals, timescales and required investment returns;
  • review any investment policy statement in place;
  • consideration of ethical and sustainability preferences;
  • initial recommendation and ongoing oversight of investment managers;
  • agreement of goals based investment strategies and benchmarks;
  • tax efficient investments and reviews;
  • determining appropriate risk tolerances and benchmarking;
  • providing diversification of assets and managers;
  • ongoing reviews of performance against agreed goals; and
  • strategic revisions and recommendations to reflect the changing circumstances and needs of the charity.

Our process

The philosophy we believe in emphasises long-term commitment to create a well-rounded strategy for your charity.

The recommendations we propose will be based on your charity’s objectives, attitude to risk, and investment preferences you have (such as ethical and sustainability considerations) and the level of funds you wish to invest. We start by establishing the financial goals of your charity, working with your trustees to assess your requirements for income and capital, and the timescales for these.

We will recommend solutions that meet the requirements of your investment policy statement, from our independent panel of investment managers and solutions. On an ongoing basis your financial planner will provide oversight and reporting on the investment solutions in place, recommending revisions as required.

You will be provided with a full breakdown of charges to agree prior to the commencement of any work. We are an NCVO Trusted Supplier and NCVO members receive a 10% discount on our initial fees.

1. Identify

Your financial planner will work with you to identify your charity’s risk profile, objectives and investment preferences.

2. Implement

Your financial planning support team will carry out thorough research to implement the recommended investments into your charity’s bespoke portfolio. 

3. Review

You will meet with your financial planner periodically to discuss your circumstances and the position of your charity’s portfolio.

FAQs

Take a look at the frequently asked questions below to find out more.

Although a charity’s investment options and requirements might differ depending on the purpose of the organisation, charities are generally able to invest. Your powers to invest usually come from one or both of the following:

  • your governing documents; and/or
  • the law.

 

Cash held in savings or instant access count as part of your investments.

There are rules around permanent endowments, so do ensure you check whether this applies before committing any funds.

Investing is a potential way to help your organisation achieve its aims. By investing you may be aiming to create an income to support your charitable purposes or grow the value of an investment to further support your charity’s purposes.

This depends on your charity’s circumstances, level of assets, capital, and income requirements, as well as investment preferences (for example required returns, risk tolerances and any Ethical and ESG requirements). This should all be set out in your charity’s investment policy statement.

You should be aware that some investments may be in conflict with your aims and could damage or harm its reputation and might cause financial detriment. This should be factored into any decision making.

This is a document created by the trustees which forms a robust strategy for achieving your charity’s goals and investment objectives. It should be held alongside other governing documents.

When considering what you are aiming to achieve from your charity’s investment, you must decide based on what is in the best interest of your organisation, setting aside any personal views or preferences.

By creating, and regularly reviewing an investment policy statement, you can ensure all investment decisions can be sensibly taken by the trustees and other professional advisers, as it will set out the organisations aims, timescales and purposes for making any investment. It will also consider the level of risk the charity is prepared, or needs, to take and how the performance will be measured alongside any restrictions that should be imposed.

An effective investment policy statement helps ensure investments do not contradict the values of your charity.  

An investment policy statement gives your charity the framework, direction, and clarity it needs to make investment decisions and demonstrates you’re meeting your governance responsibilities.

The Trustee Act 2000 gives wide powers of investment to the trustees, however you must follow the strict duties and responsibilities which are set out, we have highlighted some of these below.

  • You must consider any restrictions or requirements to invest (or not invest) that are detailed in your charity’s investment policy statement. This includes considering diversifying your organisation’s investments.
  • You should regularly review your charity’s investments — this is usually done at least annually. You should keep a record of the review, even if you decide not to make any changes to how and where the funds are invested.
  • Before making any investment decisions you must consider whether you need to take expert advice about the way in which you have decided to invest.
  • When reviewing investments, you must consider proper advice about whether the existing investments should be kept or changed.

Useful resources

Take a look at our useful resources below to find out more. Additional content is available via our resource centre.

What our clients say

How do we do it?

Our processes ensure we maintain the highest standards and continue to deliver suitable outcomes for our clients.

Contact us

To find out how we can help you, please get in touch today by completing our short contact form.

We have offices in Norwich, Diss, Peterborough, Chichester and London. Other members of our expert team are also available remotely across the UK.