Charity Investing

Taking care of charity funds

Charities and not for profits, prudent financial planning.

What is charity Investing;

Investments for charities and non profit organisations is more important in 2022 than ever! With record low interest rates and ever increasing inflation in the UK, making the most of the charity funds is a high priority.

Charity investing is the process of taking charity funds and investing, often in a wide range of investments (assets) and with the aim for growing them (capital growth) or generation income (income investing).

Why do charities invest;

There are many reason as to why charities invest money. The most common is to provide protection over the long term aghast inflation pressures and low interest rates.

The pursuit of better but measured returns for the organisation is prudent and demonstrates good financial acumen for charity trustees.

How to invest and it’s benefits;

Investing for you charity should be carried out by an investment professional such as an independent financial adviser.

The benefits for charities are wide ranging, from growing the money itself by taking surplus cash that is being held for a longer period. This strategy and objective covers the major inflation and interest rte issues that trusts face.

Income investing is another popular reason, where the investment is focus to produce a return for the organisation. This income can supplement or support other charity activities.

A secondary benefit that we notice overtime for charities, which can be a subconscious effort. Is that growing monies for a period of time creates the capacity for expansion projections or plans in the future – of which this ideas my have not even been thought about at the outset of the investment. All in all the process of investing surplus charity funds is a judicious course of action.

Other important information;

Here is a quick summary of things to consider for your charity, such as legal requirements; 
  • The “Governing Document” will provide key information about what you can and cant invest in.
  • Decisions need to be made correctly, take expert advice when making investment decisions
  • Diversify your investment risk, having a mix of investments.
  • Demonstrate your investment policy in your trustees’ annual report

When to action professional investment advice;

control of your charity money, includes monetary and making decisions. Trustees / board have skills or experience the charity should consider professional advice. The advice needs to be impartial and in the best interests of the charity.

You can use an investment manager or adviser but the trustees still need to make or approve investment decisions.

How we can help


Summary, things to consider?

Helping you with the finances, we offer a range of financial services to help your organisation have a bigger impact.

Advice and support

Do you need strategic help? Our advisors work with charity leaders and trustees to help their organisations become more sustainable and resilient.

Charity investing

Manage the widest range of charity-specific funds online with our CAF Investment Account. Learn more about investing, try our portfolios, and grow your investments.

Types of Investments – Fixed Interest – Equities  – International Equities – Property – Alternatives