Page 110 - Demo

INTRODUCTION
Traditionally, many religious institute charities have held listed investments
– essentially to further their charitable aims by producing an income to
support the work of the charity for example. While charities may invest in a number of ways in order to achieve their aims, there are speci c legal duties and decisions attached to each. Trustees need to ensure that they are aware
of the relevant issues and have considered them, taken advice and made the appropriate decisions. This chapter concentrates on nancial investment by religious institute charities i.e. investment in listed investments. However, many of the principles about the need to take advice apply equally to investment in property and other types of investment.
As noted above, religious institute charities like all charities have to comply with certain legal requirements and duties when investing their charity’s assets for a nancial return. Trustees must know and act within their charity’s powers, exercise care and skill when making investment decisions, select investments that are right for the charity, take advice, follow certain legal requirements if appointing investment managers, review investments from time to time and explain their investment policy.
WHAT IS MEANT BY
A FINANCIAL INVESTMENT?
The purpose of a nancial investment is to yield the best nancial return within the level of risk considered to be acceptable and which can be spent on the charity’s aims.
WHAT SHOULD AN INVESTMENT POLICY COVER?
A religious institute charity’s investment policy should set out in writing what its investment objectives are and how it intends to achieve them, its attitude to risk, how much money is available to invest, when the money will be available and future liquidity needs, the types of investment it wants to make including ethical considerations, who is to make relevant decisions, how performance will be monitored and the charity’s reporting requirements.
106 Chapter 6