In recent years, courts have been inclined to hold nonprofit corporate directors to the "business care" standard. The "business care" rule holds them to a strict standard, but permits them to consider social and environmental factors when rendering their investment decisions. Introducing ethical criteria into the investment selection process will not subject a fiduciary to liability as long as he or she makes sound financial judgments and honors the duty to diversify.
Unlike traditional socially responsible investing (SRI), the Advocacy Investing® strategy does not focus on exclusionary tactics. For that reason, it doesn't jeopardize diversification, but creates customized portfolios based on the corporation's unique mission. In fact, the Advocacy Investing approach affords non-profits a unique opportunity to drive mission and further the goals of the organization.
To learn more, I invite you contact us to see how the Advocacy Investing strategy can benefit your non-profit organization.