Including clear procedures for monitoring, evaluating, and changing your investment advisors in your investment policy statement (IPS) is essential to fulfilling fiduciary responsibilities. Investment advisors can include external consultants, an outsourced chief investment officer (OCIO), and/or investment managers, each playing a crucial role in supporting the foundation’s financial goals.
Establishing Accountability and Best Practices
To ensure accountability and clarity, contracts with investment advisors should explicitly define the roles and responsibilities of all parties involved—such as the advisor, board members, and any internal staff.
Foundations should establish a routine review process for all investment providers and consider putting service contracts out for rebidding every 3–5 years. This promotes best practices, keeps costs competitive, and ensures that the quality of services aligns with current market standards.
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