Budgeting: Not-for-Profit Context (contributed by Helen M. Savage) Catholic Charities Regional

Budgeting: Not-for-Profit Context (contributed by Helen M. Savage) Catholic Charities Regional Agency serves several contiguous counties in Ohio. The finance committee of its board of directors mon- itors financial activity for the agency. This oversight includes decisions regarding the investment of excess funds and the management of endowment funds. These decisions are relevant to the annual budget prepa- ration since the investment accounts serve as a source of needed funds and/or a use of excess funds.

As a Catholic Charities agency, the regional organization must adhere to guidelines adopted by the U.S. Council of Catholic Bishops. Visit the council’s Web site at http://www.usccb.org/finance/ srig.htm and review its Socially Responsible Investment Guidelines, which discuss basic principles for investments and the stated Investment policy of the organization.Required

What is the meaning of the word stewardship? Should the religious or philosophical position of an organization affect decisions that are made as part of the budgeting process?

How should a board of directors for this organization apply these principles in making investment deci- sions tied to the annual budget?

Would you, as a board member, ignore such principles to increase investment gains? Why or why not?

If the agency’s monies are managed by an investment firm, should the board request information about the stocks included in individual investment funds to verify compliance with the stated investment pol- icy of the organization?