11: Investment and Spending Policy
Confirming
Reconfirming
The investment policy describes asset allocation parameters, measures used to evaluate investment performance, the spending policy, and guidelines for diversification. The investment policy includes guidelines to prevent violation of excess business holdings rules for assets held in funds legally defined as donor advised funds.
Key Elements
- Description of asset allocation parameters (Refers to parameters for different types of assets, such as equities, cash, bonds, etc.)
- Measures used to evaluate investment performance
- Spending policy
- Guidelines for diversification (Refers to parameters regarding the percentage of the investment portfolio that can be invested in a particular company, issuer of bonds, etc.)
- Guidelines to prevent violation of the excess business holding rules for assets held in donor advised funds (Cross-check with gift acceptance policy; can be in either or both documents)*
*Pension Protection Act requirement
Material Changes
No documentation is required.
Core Materials
Required Documents
- Investment Policy
- Spending Policy
No documents required for reconfirmation unless your original binder submission was prior to August 2006 and you have yet to meet the Pension Protection Act requirements.
Other Suggested Documents
- Gift/Fund Acceptance Policy*
*Pension Protection Act requirement