May 4, 2021
Non-Profit Investing w/ Steve Zabilski of St. Vincent de Paul
- BRT S02 EP18 (65) 05-02-2021
What We Learned This Week
- Non-Profits are still run just like a business – budgets, expenses , board mtg
- Budget forecasts are done 3 years out by a committee who then makes recommendations to the full board quarterly
- Invest – 3 ‘buckets’ / types of accounts – Cash (S/T 90 days), Reserve (12-18 mths), Endowment (L/T – 5 yrs +)
- Plan for time when donations decline – cyclical
- Non-Profit filing - Form 990 for tax exempt organizations
Guest: Steve Zabilski,
Executive Director of St Vincent de Paul
https://www.stvincentdepaul.net/about/our-board
Homeless Population in Phx
Struggling and How to Help
Help to Feed, Clothe, House, Heal
those who need it most
Business of Non-Profits – Steve talks about running a Non-Profit and all that is involved from the board, to employees, investments & more.
We learn: How Non-Profits are still run just like a business, with budgets, expenses, and board meetings monthly. Analyze donations, and when they are received. For example, there will be cyclical bumps in the holidays, and slowing in the summer.
Determine what money is available for current expenses (this year), then short term needs (12-18 mths), and what can be invested for growth long term (use a 3 account system). Budget forecasts are done 3 years out by a committee who then makes recommendations to the full board quarterly.
Notes:
Run non-profit like any other business, expenses, cash flow
Steve has an accounting & Financial background, was at KPMG & insurance co., been with St. Vincent’s for past 25 years
stvincentdepaul.net
Full board meeting with all 25 members – 2-3 hr, 3rd Wed of the month
Executive board, w/ group of 5 – meet 1st Wed of the month.
Meet to discuss - Expenses / CF / budgets / Investing
Internal Controls for cash and financials
Treasurer / CFO – Mr. Mark Anderson, CPA. 17 yrs at St. Vincent’s
Auditor –Annual GAAP by Clifton Larson / CPA
Management Ltr. – summary and marketing
Invest – 3 ‘buckets’ / types of accounts
- Cash (liquid) – S/T 90-120 days – Ops – Payroll, rent, bills, supplies.
- Reserve & Excess – mid-12-18 months to 5 yrs – sub buckets, some Equity / fixed income
- Endowment – L/T 5yr + - investing 80/equity REIT – 20 / fixed income
Investment committee – CEO, Exec Director, Manager, some board members
Meet quarterly - Questions and instructions from donor
How receive money / donation – cyclical / yr., heavy in holidays, summer is slow
Guest: Denver
Nowicz, President - Wealth For
Life
http://wealthforlife.net/
https://www.linkedin.com/in/denvernowicz/
https://twitter.com/denvernowicz
Denver is an advisor with nearly 20 years experience working with clients in investments and insurance, designing retirement plans with a combo of both. He takes us through different strategies for clients to get the best allocations for their money over the long term. It is the Combo Strategy of both Offense and Defense, the synergy of the mix, not ‘All or Nothing’.
He talks investing strategies for individuals and how he uses a similar strategy for Non-Profits. Run the budget the Non-Profit for the next 3 years. What cash is needed for expenses, and emergencies. Then what cash can be invested for short term duration, ie under 3 years in more fixed income, and what can be invested in stocks for higher growth.
Notes:
Treat non-profit like individual set-up.
Plan for time when donations decline – cyclical
Asset Pool – Assets grow L/T. Safer funds, low risk.
Bond or Mutual Fund – conservative strategy ex – 80% fixed
Income – 4% bond, 1 to 2% for 2-3 yrs
Forecast budget 2-3 yrs out
Capital preservation for 2-3 yrs of money on hand, then invest other money for growth
Non-Profit filing - Form 990 for tax exempt organizations
Meet with Board – quarterly reviews.
Link to Taxes Show on 10/31/2021 w/ Denver: Here
Link to Offense / Defense Show on 6/6/2021 w/ Denver: Here
Link to Shows, Denver was a Guest: Here
Investing Topic: https://brt-show.libsyn.com/category/Investing-Stocks-Bonds-Retirement
Community:
https://brt-show.libsyn.com/category/Community-Charity-Education
‘Best Of’ Topic: https://brt-show.libsyn.com/category/Best+of+BRT
Thanks for Listening.
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