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How the Do Good School is growing their giving.
The Challenge:
A nonprofit the "Do Good School" has $1M in reserve funds sitting in their savings account. The good news is that they converted that savings account into a money market so every year they get an average return of .07%. This gives them an additional $700 per year! The bad news is that the inflation rate was 1.2% in 2020 and expected to be 2.4% in 2021.
This means the Do Good School's money is actively losing value.
The Solution:
If the Do Good School had instead chosen to passively invest (financial practices that donors, businesses, and foundations follow) with Infinite Giving in our diversified Balanced Grower portfolio, that $1M in reserve funds could have returned an annual average of 8.29% per year.
They could have kept up with inflation and potentially earned an average return of $82,900 each year.
Should the Do Good School decide to keep investing, compound interest could grow their account to $1.49M over a 5 year period, all without raising additional donor support.
We call it Growing their Giving.
Want to learn more? Book a free 20 minute consultation with a Nonprofit Investment Advisor Representative. You can also download this case study as a PDF here.
The performance quoted represents past performance. Past performance does not guarantee future results. The current performance may be lower or higher than the performance data quoted. Calendar year returns reflect only full-year performance. Data Source: Wall Street Journal Markets Data.
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