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charity will need to have cash to meet such needs when they materialise
The restricted funds held by the charity – there will be limitations on how the funds can be used and probably an expectation that they will be needed sooner rather than later
Long term objectives (after ve years) – funds needed for the future care of older and frail members of the institute but possibly also to fund new projects and initiatives, some of which will be managed by members of the wider institute in overseas countries
Past patterns of expenditure are often an indication of future trends
Unplanned or uncertain events including economic factors such as impact
of in ation or changes in interest rates or government policy (Brexit)
It is imperative before making any major investment decision that the trustees have quanti ed the funds that need to be available instantly, those that are needed in the short term, those the trustees can afford to tie up for longer periods and those that should be used to react to unplanned events.
WHAT TYPES OF INVESTMENT WOULD BE DEEMED FINANCIAL INVESTMENTS?
Financial investments come in many guises and will include:
Cash deposits, shares in listed companies (equities)
Interest bearing loans to companies or government (bonds or gilts)
Buildings or land
Common investment funds or charity authorised investment funds (FCA regulated and VAT exempt) and pooled investments.
Private equity
Hedge funds
Commodities
Derivatives
Financial investments may be traded in the UK or globally and may be in assets that are located in the UK or globally
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