In 2011, 275,000 not for profits lost their federal tax exempt status. Depending on who is counting and whether they include endowments and foundations, there are approximately 1,600,000 not for profit organizations currently registered in the U.S.
New guidelines have been set in most of States requiring the organization to be in compliance with UPMIFA (uniform prudent management of institutional funds act). Not for profit endowments and other pools of capital are also required to be managed according to the guidelines of the Prudent Investor Rule.
Scrutiny by the various regulators is increasing and penalties will continue to increase for those organizations not in compliance.
Chapin Hill Advisors offers consulting services to the mid-sized non-profit organization to help them navigate the world of finance and compliance. The execution of the mission as well as the cultivation of donors all too often leaves little time for staff and board members to concentrate on these important areas.
Chapin Hill Advisors can assist with all or a portion of the process such as creating current and future cash flow analysis, designing and implementing planned giving strategies, review overall asset allocation, costs, manager performance and selection as well as a complete portfolio review to assist the board and senior management. If your organization has an under-funded defined benefit plan or an antiquated retirement plan, our team can provide customized solutions to reduce risk, provide transparency and guidelines on risk reduction.
We often reach out to our Strategic Resources to assist in implementation of specific strategies such as planned giving, defined benefit analysis, legal experts in non-profit law, board governance experts, board search firms and other experts to deliver coordinated and tailored expertise to the non-profit organization.