Not every board needs an investment committee. If the organization has sizable assets, an endowment, and/or a planned giving program, it probably should form an investment committee. This committee’s responsibility is not to invest the funds, but to ensure there is a secure framework for safe investments of all applicable funds and that an independent manager manages the assets under the committee’s supervision.
The primary duties of an investment committee are:
- Drafting investment policies for the organization
- Hiring and overseeing the performance of an outside investment manager
- Setting performance goals for the portfolio
- Following the markets closely
- Being familiar with new regulations affecting the invested assets
- Reporting investment developments to the rest of the board