WHAT IS THE BEST PLACE TO INVEST THE MONEY OF A NON-PROFIT ORGANIZATION?

The idea of my non-profit classification is to lift the vast total of income over the subsequent 3 years. The income is performed from particular donors. Instead of usually carrying it long for in the 1% checking account, I’d similar to to put it in the higher-yield account. Many of the renouned online assets accounts (HSBC, ING, Emigrant, etc.) usually suggest their accounts to individuals, not to businesses or non-profits. I’m seeking for the most appropriate no- (or really low-) risk option.

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{ 3 comments… read them below or add one }

chimpus_incompetus January 14, 2011 at 5:01 am

Try investing in a bond mutual fund. Make sure you get a fund that invests only in investment grade bonds of BBB or better, not “high-yield” bonds (aka “junk bonds” because the risk of default is considered high).

The biggest “risk” with bonds is that they don’t have the potential for higher yields that stocks have, but they also don’t fluctuate in value as much.

Those funds are very safe because the companies they invest in are considered the best credit risks. If something unforeseeable happens and one or two of the bonds they hold default, they won’t be severely impacted because they hold diversified bonds to lessen their overall risk. Also, if the issuer goes into bankruptcy, the bond holders are considered creditors and have first claim to any assets the company still holds, as opposed to stock holders who get nothing unless all the outstanding debts are paid off.

If you are a tax-exempt non-profit, you will get higher yields on regular bonds versus tax-exempt government bonds.

gosh137 January 14, 2011 at 5:04 am

check http://www.bankrate.com for high yielding checking or money market accounts. You might just have to call each bank you like to see if they will take your business. Also check with the national brokerage houses. You maybe able to “ladder” some CD’s with them.

Frank Castle January 14, 2011 at 5:43 am

I know a company currently offering 38.90% annually without risk in USD or EUR.

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