Charities with surplus funds often make investments to increase their income.
Under the Trustee Act, most trustees are able to invest in almost anything regarded under trust law as an investment. There are some restrictions on investment in land purchased and developed with a view to sale and works of arts or commodities such as gold or vintage wine, acquired with a view to resale in the future at a profit. The purchase and sale of such items will usually be viewed as trading.
When managing a charity’s investments, trustees must act to certain standards spelled out in the Trustee Act. These include a general duty of care, consideration of the suitability for their charity of any investment, allowing for diversification of investments, regular reviews of investments, and the use of specialist advice on investments.
The Charity Commission’s guidance on investments, known as CC14, was last updated in 2003 and so the Commission instigated a new review in 2009. Many charities feel the sections on ethical investments particularly needs to be rewritten, to make it more permissable for charities to choose or exclude certain investments that support or hinder their cause.
Charity Finance senior reporter Vibeka Mair compiles a comprehensive guide to common investment prices from the past month.
Investment in 2012: Equities to the fore
Ruth Murphy gives some pointers to what 2012 might have in store for charity investors.
A coalition of Christians is planning a protest to urge the Church Commissioners to disinvest from BP, Shell and Exxon Mobil, in which it has a combined investment of £170.8m.
The government should look again at reducing VAT on investment management fees for charities, says Diane Wilde.
The Church Commissioners has revised its investment policy to exclude payday lenders and pawnbrokers, and also plans to challenge its internet-provider investments which promote pornography.
Charity Finance senior reporter Vibeka Mair compiles a comprehensive guide to common investment prices from the past month.
Interest rates market outlook December 2011
As the international economic situation becomes increasingly bleak, Ian Buss analyses the latest market reports.
As head of finance at a large grantmaker, Jackie Turpin congratulates the Charity Commission on powerful new investment guidance that should encourage trustees to think outside the box.
Australian retail megalith the Westfield Group has entered into "exclusive arrangements" with the Whitgift Foundation to explore the redevelopment of the Whitgift Shopping Centre in Croydon, where the Foundation owns the freehold.
Common investment fund prices: October 2011
Charity Finance senior reporter Vibeka Mair compiles a comprehensive guide to common investment prices from the last month.
Social Enterprise UK has called on the Church of England to lead the way in investment in ethical and social causes.
Time-limited investing
The Diana Fund plans to wind up in 2012. Terry Hitchcock outlines the investment challenges this has posed.
The Church Commissioners have written to Rupert Murdoch for the second time this year to express concerns about News Corporation, in which it has an investment of £3.8m.
Interest rates market outlook November 2011
As CPI reaches its highest point since it was introduced Ian Buss analyses the latest market reports.
Restructuring an investment portfolio
After suffering badly in the 2008 crash, the Asthma UK investment portfolio has been restructured, explains Ian Bucknell.
Charities’ finance and investment committees should examine the impact that the current record-high inflation has on their income and costs, and consider adjusting their investment strategies to compensate, an investment expert has advised.
The Charity Commission has finally published its new investment guidance, CC14, and it makes clear that programme-related investment and ‘mixed-motive investment’ are both perfectly legitimate models for charities to consider.
New CC14 will open the door to social investment
The new guidance will provide a stimulus to social investment, believes Stephen Hammersley.
New Commission guidance on investing: Flexibility, not prescription
Kate Rogers considers what impact the new CC14 will have on both investing charities and fund managers.
The Charities Property Fund has aquired five new properties for almost £60m in quarter three, bringing its Net Asset Value to £456m.
Money invested in Britain’s green and ethical retails funds has reached a record high of £11.3bn, according to figures released by EIRIS, a sustainable investment research firm.
Active investing
Shareholder resolutions are becoming more common. Neville White advises charities to take a close interest.
Decline of the CIF? Pooled Funds Survey 2011
Each year Charity Finance asks both fund managers and charities about the merits of pooled investment. Gareth Jones summarises this year's views.
Busting myths about investment income for grantmakers
Claire Brown nails the misconception that lower investment income means foundations must cut grants.
Interest rates market outlook October 2011
With talk of a double-dip recession increasing, Ian Buss provides analysis of the latest financial reports.
Trustee sentiment about the economic outlook for the sector appears to have improved over the last year, according to a poll of 275 charity trustees at the annual Charity Symposium hosted by Rathbones Investment Management.
The Church Investors Group is to use its financial muscle to press UK hotel groups to take action to ensure they don’t become complicit in human trafficking and exploitation during next year’s London Olympics.
UBS has contacted all of its charity clients to offer reassurance that their invested funds are safe, following the arrest of a rogue trader who is estimated to have cost the Swiss banking giant £1.3bn.
Charity investors shouldn’t expect to reap much return on their investments for the whole of the next decade, Money Week editor-in-chief Merryn Somerset Webb said earlier this week.
Major donors that give to charity through CAF Charitable Trusts donated more than £100m last financial year, a jump of 25 per cent on the year before.
