Where’s the Beef?
Craig Swistun
Portfolio Manager
Lexicon Financial Group of Raymond James Investment Counsel
Clara Peller was a Russian-born television personality who rose to fame when, already at the age of 80, she asked a simple but provocative question: “Where’s the beef?” Peller was the star of the famous television ad for Wendy’s created by the agency Dancer Fitzgerald Sample. The spot made Peller and her catch-phrase famous and helped the restaurant chain increase its sales by more than 30%.
For those too young to remember, Peller was responding directly to a fictional competitor called Home of the Big Bun. “Where’s the beef?” indeed. The spot resonated because the underlying message was simple: you have options, so why settle for less?
These days, clients of investment professionals shouldn’t settle. Over the last two decades, most professionals have responded by expanding the range of services they provide. For example, our individual and family clients have access to financial planning, investment management, insurance solutions, tax solutions, estate and trust services, and charitable giving expertise, just to name a few. Gone are the days of paying a hefty commission to a stock broker just to purchase a stock or bond. That’s a good thing.
However, this may not be the case for nonprofits. They may be settling for less. That’s because, often, they hire investment professionals who focus exclusively on generating returns in their portfolio. Of course, prudent management of investment assets is critical. In fact, I’m registered directly with provincial securities commissions in multiple jurisdictions as an “advising representative” to provide those services at the highest level. But could the industry be providing more to nonprofits to help them succeed? Shouldn’t they try? Because, if investment management is the only service being provided, nonprofits may be buying their own version of a big bun.
A Shifting Landscape
Today’s nonprofit leaders should expect the professionals they work with to deliver strategic value beyond portfolio management. They should consider working with professionals who can help:
align investments with their mission,
engage donors in strategic giving conversations, and
work collaboratively to build long-term sustainability.
When a nonprofit entrusts an endowment or reserve fund to an asset manager, they are safeguarding the generosity of the past. But shouldn’t those same professionals be there to help guide them and their supporters into the future?
1. Managing Assets Is Table Stakes—Mission Alignment Is Leadership
A nonprofit’s endowment is more than just a financial asset. It’s a tool for preserving and advancing the organisational mission. Why aren’t more people asking themselves: Should our investments reflect our values?
For example, a health-focused organization might allocate a portion of its portfolio to companies or sectors actively developing medical devices or mental health solutions. This approach can be referred to as values-based investing and signals to donors and stakeholders that even your financial decisions reinforce your purpose. This can deepen donor trust and differentiate your organization in a competitive fundraising environment. Moreover, you’re actively supporting entrepreneurs and businesses who are working in their own way to advance your stated mission. If they succeed, you succeed.
2. A Structured Approach to Portfolio Construction
Nonprofits rarely focus on just one financial goal. They may need:
Operating reserves for short-term liquidity,
Capital project funds for medium-term needs, and
Endowment growth for long-term sustainability.
It’s okay to have a single investment strategy, but nonprofits might also consider designing multiple allocations, each with their own written Statement of Investment Policy to match liabilities with anticipated costs and revenue streams. A one-size-fits-all approach may not work. For example, the funds required to operate the nonprofit for a 12-month period could be invested with capital preservation as a primary objective, while endowment funds could focus on capital appreciation.
3. Governance and Transparency Inspires Confidence
Boards and donors expect clarity, so any investment professional should provide:
A written Investment Policy Statement that clearly outlines objectives, risk tolerance, and spending policies. It should be written in plain language so that every board member has a clear understanding of how assets are invested, not just the investment committee.
Impactful reporting that goes beyond compliance—showing performance, risk, and, where applicable, the social impact of mission-aligned investments.
4. Beyond the Markets: Fundraising and Development
The right relationship can help you grow impact by strengthening donor engagement. Professional advisors can further support the financial health of your organisation through:
Board education on the nuanced rules surrounding philanthropy and giving. This is especially important if board members are put into positions where they are asked to fundraise or liaise in that capacity with donors. Educating donors begins with educated board members.
Donor engagement strategies—including resources on gifts of securities, life insurance, and legacy giving. Teaching existing supporters is not only good for donor engagement and donor retention, but it can also showcase strategies.
Introductions to vetted professionals in marketing, branding, and event planning.
Peer learning opportunities with organizations facing similar challenges.
Foundation accounts to accept gifts of appreciated securities, making giving easier and more tax-efficient for donors and reducing or eliminating costs of using intermediaries to accomplish similar tasks.
5. Leveraging Technology and Partnerships
Fundraising technology is evolving rapidly. Investment professionals who can connect you to tools like AI-driven donor targeting, online gift calculators, and donor management platforms can help:
Identify prospects most likely to support your cause,
Streamline stewardship and reporting, and
Optimize campaign performance.
The Human Equation
Technical expertise matters, but so does a shared commitment with your providers to make positive change and build community. We all know the current landscape -- donations remain down and costs continue to rise. Effective stewardship and proper management of your donated assets is important, but nonprofits may derive additional benefits by working with those who can:
Align their investments with your mission,
Help nonprofits engage donors and grow fundraising capacity,
Provide governance and reporting that inspire confidence, and
Connect them to technology and networks that amplify impact.
After all, we know that for nonprofits and charities, success isn’t measured in dollars, it’s measured in change.
Craig Swistun is Portfolio Manager with Lexicon Financial Group (www.lexiconfinancialgroup.com) at Raymond James Investment Counsel.
The opinions expressed are those of Craig Swistun and not necessarily those of Raymond James Investment Counsel which is a subsidiary of Raymond James Ltd. Statistics and factual data and other information presented are from sources believed to be reliable but their accuracy cannot be guaranteed. It is furnished on the basis and understanding that Raymond James is to be under no liability whatsoever in respect thereof. It is for information purposes only and is not to be construed as an offer or solicitation for the sale or purchase of securities. Raymond James advisors are not tax advisors and we recommend that clients seek independent advice from a professional advisor on tax-related matters.