Financial Advisor Guidelines

YouthBridge Community Foundation | Greater Horizons takes seriously its stewardship responsibility as a manager of many different kinds of donor funds. It recognizes that each donation – no matter the size – reflects an implicit trust in the ability to invest resources wisely and use the income produced, and in some cases the fund’s principal, in accordance with a donor’s charitable wishes. Likewise, we require all financial advisors to manage funds in a prudent manner consistent with the purpose and goals of the particular fund they are managing.

In addition, financial advisors must comply with the following:

(a) Financial advisors, and all employees of such advisors, shall at all times operate in compliance with all applicable laws and regulations.

(b) Financial advisors shall notify us when there occurs any material change in investment style, or any change in either the individual or firm advising the account.

(c) Financial advisors shall seek the best price and execution for security trades they execute and shall comply with all regulations concerning “soft dollars.”

(d) Financial advisors shall not, at any time, charge higher fees or commissions to the donor’s fund than charged to the donor’s personal accounts.

(e) Financial advisors shall disclose all perceived or actual conflicts of interest, and all economic ties, commitments or familial relationships between and amongst the donor and the financial advisor. Family members are prohibited from serving as investment advisors.

(f) In addition to monthly (quarterly) statements, financial advisors shall also provide monthly (quarterly) net-of-fees performance reports compliant with the most recent edition of the CFA Institute’s Global Investment Performance Standards (GIPS) Handbook.

(g) Financial advisors are prohibited from engaging in the following transactions on behalf of the YouthBridge Community Foundation | Greater Horizons:

•  Any transaction that is not commensurate with our tax-exempt status.

• Any transaction that results in leveraging our assets unless such transaction is disclosed in writing to us prior to the transaction.

Excluding mutual funds, any transaction investing in private placements, lettered stock, futures contracts, swaps, synthetic securities, derivatives, options, short sales, margin transactions or other specialized investment activities unless such transactions are disclosed in writing to us prior to the employment of the manager.

(h) Financial advisors are encouraged to develop an Investment Policy Statement outlining the objectives, time horizon and expected distribution rates of the fund as the basis for their asset allocation decision.