About
COURSE OBJECTIVE
Develop an understanding and proficiency in applying the various economic principles, corporate finance ideas and concepts of financial management in analysing alternative investment decisions in a not for profit environment, NGOs, Trusts and Maori organisations.
“I would recommend this course, especially for those already on or thinking of joining a board.”
Fiona Bariball, Chairperson, Awhina Wahine Inc.
“The course was good as it included assessment of economics of projects and an analytical approach to decision-making. The course has also provided additional tools for project decision-making.”
Denis Schollum, Client Manager, NZ Guardian Trust
Do you need to get a general understanding of investments?
Would you like to know more about the popular areas investors are investing in currently?
Do you know how investors approach not-for-profit investments such as those in Trusts or other NGOs?
The goal of investment for trusts and NGOs is to maximise social value. Just as businesses become increasingly competitive, executives in not-for-profit organisations are required to improve decision-making and understanding of investments and project proposals.
However, many of those charged with overseeing the operation of not-for-profit organisations lack adequate investment management expertise and since they’re not profit-driven, resist becoming too business-like.
Bright*Star’s Investment Management & Decisions for NGOs, Trusts & Maori Trusts is designed to bridge understanding of the various concepts, tools, contexts and financial models - towards greater degrees of organisational sustainability.
Investment Management & Decisions for NGOs, Trusts & Maori Trusts is suitable for professionals in the not-for-profit sector. This course will benefit those with some basic or limited finance knowledge and you will gain:
• The ability to read basic financial statements
• Basic spreadsheet knowledge
• Greater understanding of your own organisation’s investment management
• Useful and applicable knowledge
• Best investment practices for not for profit organisations
8 GREAT REASONS TO ATTEND
1. Understand the difference between social, financial and NGO capital markets
2. Appreciate how financial capital in its various forms supports the creation of social value in the NGO capital market.
3. Develop an understanding of basic value concepts
4. Gain some basic investment tools
5. String the concepts and tools together to make it work for your organisation
6. Learn to conduct project appraisals
7. Appreciate the broader economic, political and organisational factors and how they can be integrated with financial decision-making for investments
8. Reinforce your learning experience through a simulated project exercise that will see you working with a team investing in an equity project in a step by step manner with guidance from the instructor.
Outline
1. The Nature of Investment
• Social, financial capital markets and Maori Trusts, Incorporations and NGOs
• Defining the NGO capital market
• Social Return on Investment
• How do the types of investor differ
• What returns do investor’s seek?
• How financial capital in its various forms supports the creation of social value in Maori Trusts and like entities through the NGO capital market.
• How is social value traditionally understood relative to financial returns?
2. Investment for the NGO Sector
• The purposes of investment for Maori Trusts, Incorporations and NGOs
• Developing investment objectives
• Legal issues trusts, limited liability, others
• Identifying non commercial factors
• Exploring the market targets for these investments
3. Basic Investment Concepts
• Understanding value concepts
• Measuring risk and return
• Capital asset pricing
• Exploring and understanding portfolio theory
• Measuring investment success
• Risk and investment with land
- Where are the risks?
- How do we manage the risks?
4. Basic Investment Tools
• Understanding the time value of money
• How efficient are markets?
• Calculating the cost of capital
• Understanding and using NPV, EVA and other methods
• How to use asset allocation methods
5. Working with the concepts and the tools – workshop examples, portfolio level
• A simple portfolio for New Zealand – the design
• Which financial instruments?
i. Fixed interest assessments
ii. Equity assessments
• The cost of transactions and administration
• Monitoring transactions and administration
6. Investment and Organisations
• Investment for companies, trusts, not-for-profits
• Risk management in such entities
• Returns to investors in such entities
• Complying with regulatory requirements
• Investing without ownership – Issues in Maori land ownership aspirations
• Tax issues for Maori Trusts and NGOs - How should tax exposure be managed
7. Projects and Project Appraisal
• How to conduct financial analysis
• How to conduct policy analysis
• How to conduct risk analysis and management
• How to conduct economic analysis
8. Workshop Project Example
Delegates will work through a proposal to invest in an equity project in a step by step manner in groups, with assistance. The final result will be presented to the course participants as a proposal.
9. Placing it in Context: the New Zealand Investment Climate
• Macro economic factors in N.Z.
• The impact of politics and policy
• The Treaty
• Where are the policy risks?
• The N.Z. Super Fund
• The future
