That shift places more pressure on portfolios to both generate returns and provide additional liquidity, putting institutions in a difficult position. It also means that E&F investment decision-makers should be prepared to respond during times when spending needs outpace investment returns, fundraising and other inflows.

This article highlights ways that E&F boards and investment committees can better align their portfolios and spending policies with the organization’s mission, constituent needs and changing markets.

Start with the mission

For E&Fs, major portfolio decisions should start with the organization’s mission—whether the goal is funding operations, sustaining grantmaking, preserving purchasing power or increasing…