Are there any restrictions on the types of investments a nonprofit corporation can make?

Yes, there are restrictions on the types of investments a nonprofit corporation can make in North Carolina. Under North Carolina law, a nonprofit corporation can only invest its funds in ways that are consistent with its charitable or educational goals. Nonprofit corporations are not allowed to use their funds to speculate or make risky investments. Generally speaking, North Carolina law allows nonprofit corporations to invest in traditional securities, such as stocks, bonds, mutual funds, and certificates of deposit. However, these investments must be made with reasonable care and with the intention of preserving the corporation’s assets for its charitable or educational goals. Nonprofit corporations may also invest in real estate, but only if these investments are necessary to fulfill the corporation’s mission. Nonprofit corporations are not allowed to engage in "self-dealing," which means they cannot use their funds to make investments for the personal benefit of their directors or officers. All investments must be made to further the corporation’s charitable or educational goals. Additionally, nonprofit corporations cannot use their funds to purchase speculative investments, such as derivatives or exotic securities, as these could put their funds at significant risk of loss. In conclusion, nonprofit corporations in North Carolina may only make investments that are consistent with their charitable or educational goals and that are made with reasonable care in order to protect their assets.

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Are there any restrictions on the types of investments a nonprofit corporation can make?

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