An investment is an asset or item acquired with the goal of generating income or appreciation. Appreciation refers to an increase in the value of an asset over time. When an individual purchases a good as an investment, the intent is not to consume the good but rather to use it in the future to create wealth.
As a non-profits, NGO we rely on a variety of sources for funding, including membership dues
Like individual investors, as the operating cash base of a non-profit organization grows, there is an increasing importance for the nonprofit to transition to an investment . When an investment is implemented alongside fundraisers and other revenue sources, it can help our Ngo to reach our financial goals more quickly and accomplish specific spending projects (e.g. fund a scholarship, construct a building, etc.). Additionally, it can set our non-profit organization on the path to long-term operational viability.
Establishing an investment can also aid our Organisation fundraising capabilities through non-cash gifts. By opening a brokerage account, a NGO can receive investment securities as charitable gifts (e.g. stocks, bonds, etc.). This is beneficial to both our NGO as well as potential donors, as it allows for tax-efficient charitable giving.
Based on discussions with investors, our NGO and donors, its detailed framework looks at ways institutional investors and our NGO can increase impact and still achieve market rates of return.