Information for charities

Investing in an ethical and socially responsible way is now acknowledged as a sound medium to long term strategy. Whilst there will be those who are happy to make easy money at the expense of others, the rapidly increasing trend for charities and groups is to seek profit responsibly via ethical investment.

The fiduciary duty of Trustees must be balanced with the objectives of the group or charity. For many organisations it is a requirement to ensure that ethical considerations are taken into account when making investments.

Along with the sections below, Ethical Investors can advise charities upon:

Important Development our sister company, Ethical Screening, has developed a free on-line ethical database of the UK's top 350 companies. UK based charities and NGOs can have free access to this database, where they can check on the ethical credentials of UK companies in which they investors, or can check the ethics of companies that they may want to enter into a relationship with.
For further information and to register, go to the Ethical Screening web site

Lump Sum Investment & Regular Savings

Most people would agree that saving and investing is one of the best ways to build capital for the future. If you want to save a regular amount each month or have an existing lump sum to invest to achieve capital growth or income, there are many options open to your organisation.

Like most things in life, saving and investment is a question of drawing a balance. On the one hand there are safe, secure and relatively low yielding investments such as Building Society accounts, and on the other are schemes such as Unit Trusts, which offer the potential for far greater returns, but which also incorporate a greater degree of risk.

Helping you to strike a balance between the two is the job of your Independent Financial Advisor. Each charity will have its own needs and these must be taken into account when building a savings or investment scheme for the short, medium and long term.

For those groups with substantial sums to invest (usually in excess of £250,000), Ethical Investors offers a unique Discretionary Fund Management service.
This section is intended to be a general guide to savings and lump sum investments which can be specifically linked to an ethical / green fund. Please contact us for further information.

Retirement Planning

If your charity is an employer, and wishes to offer the valuable benefits of pension provision for its employees, there are many options open to you. Arrangements can be designed to suit your charity's circumstances, whether you employ two people or two hundred.

All contributions you make to a pension scheme on behalf of your employees will be seen as a valuable recruitment incentive, and will bring your charity in line with the commercial sector. Schemes can be set up for all types of charitable groups, including voluntary sector organisations. Whichever option suits your charity, it is possible to ensure that all contributions made by yourself and your employees can go directly into an ethical/green fund.

Please see our 'Guide for Employers' in our Stakeholder Pension section.

Life Assurance & Protection Plans

Nowadays, many charities are run like a company but tend not to take the financial protective measures considered essential to many businesses.

Key Person Insurance

Managing a charity, large or small, requires levels of expertise and hard work which are becoming progressively complex in our modern society. Many charities are familiar with insuring offices, vehicles, and other equipment, but what about protecting the charity against the loss of its most important asset - key personnel?

Providing financial protection for the security of your charity's future is vital. However, the immediate consequences following the death of a key employee can be extremely damaging to your charity and its turnover. It is an unfortunate fact that many charities have failed to arrange adequate levels of protection for their most valuable assets. Life assurance can provide the protection required in the event of the sudden death of a key employee, and finding a replacement, or even to pay for subcontracting work. This type of cover is inexpensive, and in many cases the premiums may be allowable as a legitimate expense.

Professional Costs - Critical Illness Protection

In many charities, the sudden illness of a key person could have disastrous effects on cash flow and turnover. Would income be affected? What would the costs of employing a professional locum temporarily, whilst perhaps still paying an income to the ill employee?
Both Critical Illness and Permanent Health Insurance policies can be used by charities to protect themselves against the sudden loss, through serious illness or injury, of a key person.

Critical illness policies have been developed to provide your charity with a lump sum, if any of your staff are diagnosed as suffering from a critical illness, or need to have a major surgical operation. Statistically, there is a far greater chance of suffering a critical illness before retirement than there is of dying. Look at these government statistics from recent years:

The lump sum payment from a critical illness policy can give your charity the freedom and ability to cope with the changes in work loads which would follow a critical illness to a key member of staff.

With contributions starting from as little as £10 per month, this is a form of protection every charity should be considering, whether large or small.

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