FASFAA Initiates Landmark Investment Program
FASFAA Fiscal Concerns Committee
Leonard Gude, Chair

FASFAA has launched an investment program that includes the adoption of an investment policy and the engagement of a professional financial consultant to manage the association's significant resources. This plan has the potential to grow the Bonnie L. Pirkle Memorial Scholarship endowment at a much faster rate than in the past, and should protect the association's reserves from the effects of inflation.

"I think you are absolutely brilliant to be doing this, and your organization should see a tremendous benefit down the road as the fund grows," commented Sarah Candon, Director of Finance and Membership Services at NASFAA. Neither the committee nor Sarah has knowledge of any other state or regional financial aid association that has embarked on such an aggressive financial plan.

This action was the result of several months of work by the Fiscal Concerns Committee. In making these recommendations, the committee considered FASFAA's financial goals, evaluated past performance of investment vehicles, performed an analysis of cash flow needs, and sought a firm with the appropriate credentials for FASFAA. The policy enables FASFAA to diversify its assets, while remaining conservative with respect to risk tolerance. In selecting a professional investment organization, the Committee narrowed its search and focused on an organization with extensive not-for-profit expertise, as well as an understanding that the fiduciary responsibility of FASFAA is placed with the Executive Board instead of an individual. At its January 2004 meeting, the Executive Board approved UBS Financial Services as the full-service investment group that will invest our resources according to the policy adopted by the Board in December. Our individual financial consultant was highly recommended by the executive directors of several Florida not-for-profit organizations similar to FASFAA.

FASFAA has been a leader in state financial aid association initiatives for many years. The new investment program marks another first for FASFAA!