"You can't build a reputation on what you are going to do." - Henry Ford
Are you guilty of making assumption? This article explores the importance of course corrections and shifting strategies on the fly to be more effective. Click here to read more.
Source: David and Lucile Packard Foundation
Scott Middleton recently presented to the Center for Nonprofit Excellence on the economy, markets and implications for fundraising professionals. Read below for a short Q&A about his presentation.
Can you summarize the economic outlook in a few main points?
“Unemployment is low and wages are rising. While the Fed is becoming less accommodative, U.S. leading economic indicators are still positive. A recession currently does not appear to be likely in the next six to nine months.”
What are some of the themes emerging in the markets right now?
“While bonds have very low yields and equities are not cheap, keep a long-term focus and expect market volatility to move back to normal (i.e., higher) levels. Also, realize that diversification will test your patience. If you hate part of your investment portfolio, it may be a very good sign that it is diversified.”
How does the current economic and market environment impact fundraising professionals?
“Fundraising professionals should consider speaking with their donors about gifts of appreciated securities and/or part of their IRA required minimum distributions. It’s important to keep an eye on personal tax legislation and its potential impact on charitable giving.”
"We cannot choose our external circumstances, but we can always choose how to respond to them." - Epictetus
"Viewed with the benefit of hindsight, diversification will always disappoint. To judge the outcome of diversification after the fog of uncertainty has lifted, however, misses the point: diversification provides us the incredibly important ability to admit we don’t know. We can be vaguely right instead of precisely wrong. Constant disappointment, then, might be the greatest indicator that we are well diversified." Click here to read more.
Source: Newfound Research
"The idea of asking for feedback from beneficiaries of programs, initiatives, and systems has gained momentum in recent years." Click here to read why it is important to learn from the experiences of those we are trying to help.
"In the funder-grantee relationship, when we can mutually encourage and learn from one another, there is a deep sense of joy that makes even the toughest periods of organizational growth worth enduring. When we achieve this, we move from being solely funders to being more like partners called to work together to achieve something greater than we could have done alone. And that makes all the difference in our work." Click here to read more from the Center of Effective Philanthropy about giving relationally and prioritizing a culture of empathy and joy.
Source: Center for Effective Philanthropy
Click here to read an article from Napa.Net about an excessive fee law suit. While claims by the plantiffs are very familiar, what is interesting about this suit is that the lawyers representing the plantiffs are personal injury lawyers. In particular, this firmspecializes in motor vehicle accidents, defective products and slip-and-fall accidents.
Nonprofit organizations often cut staff to reduce administrative costs. How is this common practice affecting organizations in accomplishing their missions? Click here to read more.
Washington University was already facing a lawsuit regarding excessive recordkeeping fees. Now another lawsuit has been filed by a plan participant alleging a breach of fiduciary duty. Click here to read more.
Source: Plan Adviser
China has an inverted yield curve which has, in the past, been a signal that a recession is coming. What does this yield curve indicate about China's economic outlook? Click here to read more.
Elections, terrorist attacks and wars can send stock, bond and other markets into violent spasms. Some of these geo-political events tend to have relatively inconsequential and short-term impacts on economies and financial markets. However, other events can have significant medium- to long-term ramifications. “Politics Matters – Sometimes” explores how long-term investors can discern which events tend to have lasting and long-term impacts on the markets. Click here to read more.
Source: CFA Institute