Is treasury management very different at a nonprofit, compared with a for-profit company?
I don’t know, because I’ve never worked in the for-profit sector. But again, we never really have great surpluses to manage. Long term, we’re managing our endowment, which currently is invested in fixed-income vehicles. We place it with money managers and then review the managers’ results against certain benchmarks. As for the operating cash, we just transferred $500,000 from our operating fund to our short-term investments for operations. With this type of investing, we watch the balances, and we manage our obligations, such as payroll. The excess cash is place in short-term investment vehicles. I think that’s pretty standard in both nonprofit and for-profit worlds. Where do you invest the cash? Mostly in money-market type investments — very safe, we don’t want to lose any of our operating capital. At the Met, we would invest in a broader range of vehicles, including emerging market, foreign, and small-cap funds, which at the time was adventurous. All of the funds were large-cap, fixe
Related Questions
- How is TODL different in their management objectives, compared to a Full Service Rental Management Company (FSRM)?
- How is the Nonprofit Program different from the Management Development Program given in the fall?
- Is treasury management very different at a nonprofit, compared with a for-profit company?