Where’s the beef?

Clara Peller was a Russian-born television personality who rose to fame when, at 80, she asked a simple yet provocative question: “Where’s the beef?”

Peller was the star of the famous television ad for Wendy’s, created by the agency Dancer Fitzgerald Sample. The spot made Peller and her catch-phrase famous and helped the restaurant chain increase its sales by more than 30 per cent.

For those too young to remember, Peller was responding directly to a fictional competitor called Home of the Big Bun. “Where’s the beef?” indeed. The spot resonated because the underlying message was simple: You have options, so why settle for less?

Non-profits and charities may be settling for less. Often, they hire investment professionals, accountants, and lawyers who focus exclusively on generating returns in their portfolios or on filling out forms. 

Don’t get me wrong, investment returns and tax filings are important. But, as a portfolio manager registered directly with provincial securities commissions in multiple jurisdictions as an “advising representative”, I know investment returns are only part of the equation. 

Could these providers be doing even more to help non-profits succeed? Shouldn’t they try? Otherwise, non-profits might just be buying their own version of a big bun.  

A shifting landscape

Today, most organizations rightly focus on properly caring for donated assets. But a non-profit’s endowment is more than just a financial asset. It’s a potential tool for preserving and advancing the organization’s mission, which means that stewardship of those assets takes on an entirely new meaning.

Why aren’t more boards asking, “Should our investments reflect our values? Could our approach to asset management inspire new donors and supporters? Could our professional partners play a role in helping attract new supporters?”

For example, a health-focused organization might allocate a portion of its portfolio to companies or sectors actively developing medical devices or mental health solutions. This approach—often referred to as values-based investing — signals to donors and stakeholders that even your financial decisions reinforce your purpose. 

This can deepen donor trust and differentiate your organization in a competitive fundraising environment. Moreover, you’re actively supporting entrepreneurs and businesses working in their own ways to advance your stated mission. If they succeed, you succeed.

Further, an organization with many supporters may launch a donor education program to teach them about legacy giving, gifts of securities, and how to use supporter-controlled donor-advised funds to make a meaningful impact.

Effective stewardship is, in part, about seeking out new opportunities for growth and advancement.

Evolution is important. Non-profits rarely have one goal. They may need operating reserves for short-term liquidity, capital funding for medium-term needs and endowment growth for long-term sustainability.

 Yet organizations often lump their goals into a single policy. In a rapidly changing world, a one-size-fits-all approach may not work. 

For example, the funds required to operate the non-profit for 12 months could be invested with capital preservation as a primary objective, while endowment funds could focus on capital appreciation. 

Consider separate, written investment policy statements to govern funds that are required at different times.  

Effective stewardship often comes down to effective governance and education at the board level. 

Often, board positions are filled by amazing people committed to making positive change in their communities. Unfortunately, they often aren’t aware of the challenges facing non-profit organizations, nor are they fully educated on the nuanced rules surrounding philanthropy and giving. 

Board members are often thrust into positions where they are asked to fundraise or, in that capacity, liaise with donors. They’ll need the training and support required to navigate these conversations. 

Who better to provide that training than the professionals tasked with managing the money and the process?  

The Human Equation

Stewardship is more than just high-quality investment management or preparing tax returns. It’s a shared commitment to advancing the cause and making the world a better place. 

After all, we know that for non-profits and charities, success isn’t just measured in dollars, it’s measured in change.