In support of goal five of our mission and strategic plan, “[to] provide our members with a strong organization, with the capacity to effectively advance Confluence Philanthropy’s mission and goals,” we are pleased to share that Confluence’s Board of Directors crafted its first investment policy statement in Fall 2023. Stacey Faella, our Treasurer and Executive Director of the Woodcock Foundation, led the process.
We’re glad to have a policy in place that will guide Confluence’s investment decision-making, which prioritizes the ongoing operational needs of the organization while being attentive to our mission and values as a whole.
Our Investment Objective
In alignment with our mission, our investment objective is to preserve capital for future organizational growth and to continue to build an organizational reserve in the event of unexpected circumstances or shortfalls. To the extent possible, we seek to align our investments and other financial decisions with our values and, within the context of our mission, seek competitive financial returns.
Maintaining a Low Risk Tolerance
To that end, a cash account shall be maintained with a very low risk tolerance to keep cash available for operating costs, tax obligations, and other expenses. We currently use Stonecastle, and plan to continue to do so for the time being. Permitted cash investments include short-term money market funds, treasury bills, CDs, and short-term ESG-screened fixed-income bonds. All investments within the investment portfolio will be readily marketable.
The following transactions are prohibited: the purchase of non-negotiable securities, derivatives, high-risk or junk bonds, private placements, precious metals, commodities, short sales, any margin transactions, straddles, warrants, options, life insurance contracts, leverage, or letter stock.
Anticipated Performance
Since the organization’s funds are conservatively invested, investment performance is expected to be low, but steady. Performance shall be reviewed semi-annually, and the Board will review the portfolio and the Investment Policy Statement on an annual basis.
We would like to thank our ad hoc volunteer committee for their expert guidance, including Akasha Absher, Co-President and Head of Impact Investing at Syntrinsic, Michael Lent, Founding Partner and CIO of Veris Wealth Partners, and Raúl Pomares, Founding Partner and Managing Director of Sonen Capital LLC.
Resulting from the process, Confluence will also establish an Investment Committee, which will be composed of volunteers from the membership who will serve in an advisory function to the Board’s Finance Committee. If you are interested in joining the Investment Advisory Committee, please reach out to Dana Lanza, CEO of Confluence Philanthropy at membership@confluencephilanthropy.org.
You can view the full investment statement here.
We thank our wonderful members for their support of Confluence over the past decade and a half, and we intend to invest your support in alignment with our collective values.
Stacey Faella, Confluence Board Treasurer and Executive Director of the Woodcock Foundation
Dana Lanza, President & CEO of Confluence Philanthropy
