The financial landscape of aid organizations is crucial during the Advent season when appeals for donations increase.

Financial Behaviors and Investment Strategies

Non-profit organizations rely on public generosity during this time, and a recent analysis sheds light on their financial behaviors and investment strategies.

Evaluation of Financial Accounts

The Center for Philanthropy Studies (CEPS) at the University of Basel, in collaboration with PPCmetrics, evaluated the financial accounts of 547 aid organizations, revealing insights into how they manage their assets.

Investment Portfolio

The analysis highlights that one-third of the financial assets held by aid organizations are invested in securities, with liquid assets dominating their portfolios. Equities make up 40% of their investments, followed by bonds at 30%.

Cost Management

The analysis also shows that asset management costs tend to decrease as the size of the assets increases.

Reassessing Funding Strategies

The economic landscape and the decline in donations since the pandemic have prompted aid organizations to reassess their funding strategies and investment behaviors.

Building Stakeholder Confidence

During the Advent season, aid organizations must present compelling cases for support and demonstrate prudent financial management to instill confidence in their stakeholders.

Strategic Investment

Strategic investment and cost management are crucial for achieving their goals.