June 17, 2025
Investing in the Future: What Iowa Nonprofits can Learn from Hometown Hero Caitlin Clark
After missing five games, Caitlin Clark is back in action with the Indiana Fever and my Iowa heart is happy! In typical Clark fashion, it was not a quiet return to the court, but a commanding reminder of who she is, even after working through an injury.
Her 32-point, 9-assist, and 8-rebound showing on Saturday reminded all of us in Iowa (and across the country) of the power of resilience. Iowa nonprofits—and particularly their boards of directors and officers—should approach financial stewardship with the same mindset. One crucial tool in doing so is a strong, clearly articulated Investment Policy.
Planning Before the Pressure
Just like Clark didn’t wait until tip-off to prepare for her return, your nonprofit shouldn’t wait until a financial crisis to get serious about investment oversight. Clark’s head coach, Stephanie White, also emphasized the importance of taking a “long-game approach” to address the injury to prevent lingering issues throughout the season.
Nonprofit officers and directors hold a fiduciary responsibility to steward assets wisely. Part of fulfilling that duty means knowing how exactly your nonprofit’s funds are invested. That’s where your Investment Policy comes in.
Think of it as your organization’s recovery and resilience strategy: it defines who is accountable for investment decisions, offers guidelines to grow and protect assets, and ensures you have access to liquidity when it’s needed most.
The C.L.A.R.K. Principles
Here are key elements of a nonprofit Investment Policy. Each one echoes the same principles Clark demonstrated in her return, aka, the C.L.A.R.K. Principles of Nonprofits:
Clarity in Roles = Everyone Knows the Play
Who makes the decisions? The Investment Policy should clearly authorize certain staff to make day-to-day investment choices, while preserving board oversight. Like a coach assigning positions, this clarity helps avoid confusion when quick action is needed.
Liquidity Matters = Expecting the Full Court Press
A great team knows how to respond under pressure. Likewise, your organization should always be ready to access cash when needed. Your Investment Policy should address liquidity—ensuring that funds are available for operational needs, emergencies, or strategic opportunities without disrupting long-term investments.
Alignment with Mission = Playing the Right Game
Every decision should serve a purpose. Your investments should support your nonprofit’s mission and values. The Investment Policy should align financial goals with your organization’s purpose, outlining strategies that reflect your risk tolerance and ethical considerations.
Risk and Return = Balanced Play
Clark doesn’t win by scoring alone—she balances offense with solid defense. Similarly, your Investment Policy should carefully weigh risk against potential return. Striking the right balance through diversification, asset allocation, and loss prevention strategies helps protect your nonprofit’s assets while still pursuing meaningful growth.
Knowledgeable Support = Build a Strong Bench
If you work with a financial advisor or investment manager, the Policy should outline their role and responsibilities. This ensures everyone’s playing from the same page and upholding fiduciary standards.
Caution over Convenience
The IRS Form 990 doesn’t require an Investment Policy, but it makes clear that investment oversight is essential. Without a defined policy, your organization risks falling behind when it matters most.
Clark’s comeback wasn’t just about her personal grit, it was about preparation, guidance, and knowing her role in the bigger picture. Clark and the Fever staff knew it would disappoint fans to miss multiple games, but with eyes on a playoff run, they knew they had to invest in the team’s future success.
Your nonprofit deserves the same foundation: a forward-looking plan that helps you weather challenges and keep driving toward your mission.
Whether your nonprofit is bouncing back from a tough year or simply planning for a stronger future, a well-crafted Investment Policy is a cornerstone of organizational health. It turns uncertainty into strategy and risk into opportunity.
At Gordon Fischer Law Firm, we help Iowa nonprofits craft Investment Policies that stand up to scrutiny and support your long-term mission!
Email Me!
Questions about Investment Policies? Email me now!
My email is:
gordon@gordonfischerlawfirm.com
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