What types of investments can a nonprofit make?

Nonprofits in Washington can invest in a wide range of products and services depending on their particular mission and objectives. Common types of investments include stocks, bonds, mutual funds, exchange-traded funds (ETFs), real estate, and venture capital. Stocks are ownership shares of a publicly-traded company, and bonds are loan instruments in which investors loan money to a company in exchange for periodic payments. Mutual funds are a portfolio of different stocks or bonds managed by an investment company, and ETFs are similar to mutual funds, but they generally track an index instead of being actively managed. Real estate investments can range from commercial and residential properties to undeveloped land, and venture capital investments are typically in new or early-stage businesses. The nonprofits are able to invest in these areas in order to diversify the portfolio, make the organization more financially secure, and possibly even generate income from dividends and other sources. When considering any type of investment, nonprofits should carefully analyze their mission and objectives, the risks associated with the investments, the costs and fees, as well as other factors. They should also consult with a qualified financial advisor to ensure that their investments align with their goals and are in compliance with state and federal regulations.

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What types of investments can a nonprofit make?

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