What types of investments can a nonprofit make?

In South Dakota, the law governing nonprofit organizations outlines several types of investments a nonprofit organization can make. Generally, a nonprofit organization can invest in stocks, bonds, mutual funds, government securities, and other financial or investment instruments. These investments are designed to promote the purpose of the nonprofit organization and to generate income for its operations. In addition to traditional investments, a nonprofit may also invest in assets with tangible or intangible value, such as real estate, patents, and copyrights. These investments may be used to increase the value of the organization as well as generate additional revenue. Social investments, such as equity investments in economically disadvantaged communities, are also allowed. This type of investment must be related to the nonprofit’s mission and be approved by the organization’s Board of Directors. Finally, investments in other nonprofit organizations may be permissible, depending on the type and purpose of the investment. Such investments must be approved by the Board, and the nonprofit must fully understand the risks associated with all investments. Overall, non-profit organizations have a wide range of options when it comes to investments. However, it is important for all investment decisions to be made in accordance with the organization’s mission and the law governing nonprofit organizations.

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What types of investments can a nonprofit make?

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