Whitepaper: Optimal Risk and Spending Modeling Critical for Nonprofits

The simultaneous modeling of asset allocation and spending policies can improve the way in which nonprofit organizations manage the risk/reward trade-off in their investment programs, according to a whitepaper developed by global professional services company Towers Watson.

In its paper, Articulating Risk Helps You Achieve Your Mission, released by Towers Watson Investment Services, the company shows how nonprofits can evaluate and determine the appropriate balance of risks such as asset depletion, spending power erosion and liquidity with expected rewards.