FIDUCIARY SERVICES TO NONPROFITS

Being a leader of your nonprofit organization comes with a tremendous legal fiduciary responsibility and understanding the magnitude of this responsibility is critical. Unfortunately, not many fiduciaries are truly aware of that. Individuals acting in a fiduciary capacity often believe that they can abdicate their fiduciary responsibility by delegating it to others. This is far from being true and can lead to unnecessary fiduciary risk and cost.

As an independent fiduciary consulting firm, Lestna Retirement will help your nonprofit to achieve the Global Standard of Fiduciary Excellence. We will work with your organization to implement fiduciary best practices aimed at mitigating fiduciary risk and improving fiduciary decision-making process. 

WHAT WE CAN DO FOR YOUR NONPROFIT

FIDUCIARY ASSESSMENTS

Lestna Retirement will provide an independent and comprehensive one-time assessment of your organization's fiduciary processes. The assessment is based on the Global Fiduciary Standard of Excellence and consists of 22 practices under a four-step Fiduciary Quality Management System. We will

  • Evaluate your organization's conformity to the Global Fiduciary Standard of Excellence

  • Review fiduciary processes and documents

  • Review your expenses

  • Identify applicable law governing your nonprofit

  • Provide a detailed investment report 

The final objective of the assessment is to help you identify opportunities for improvement and maximize the return on donated and accumulated financial assets.

FIDUCIARY CONSULTING

Lestna Retirement will provide your organization with an ongoing fiduciary support and an unbiased expert opinion in the fiduciary decision-making process. We will make sure that your organization complies with the Global Fiduciary Standard of Excellence by implementing and managing fiduciary best practices. Each practice is backed by legal substantiation based on case law, regulations and regulatory guidance.

In addition to that, we will help to:

  • Fiduciary Oversight

  • Develop Investment Policy Statement

  • Review your 408(b)(2) fee disclosure and identify indirect fees 

  • Monitor, select, or replace service providers

  • Select and monitor investments and investment managers

  • Benchmark fees being paid for reasonableness

  • Monitor investment expenses

FIDUCIARY TRAINING

Lestna Retirement will provide a 4 hour fiduciary training to your organization executives, board members, and staff on what it means to be a plan steward and the importance of managing responsibility. We will focus on legal and ethical aspects of fiduciaries, illustrate fiduciary precepts, and intensively ​discuss the fiduciary best practices.

We believe that adherence to these best practices is the ultimate way to fiduciary excellence and managing of fiduciary risk. Certificate of Completion is issued after the training.

REQUEST FOR PROPOSAL

DOL Rule 408(b)(2) requires service providers to disclose all fees and compensation they receive. The problem is that many service providers are not disclosing indirect fees. This makes it difficult for plan fiduciaries to identify unreasonable fees and fulfill their fiduciary liabilities. Lestna Retirement will work with you to create a request for proposal (RFP) and conduct an unbiased search for a high quality service provider that is willing to adhere to fiduciary best practices. The advantage of our RFP is that it is based on the Global Fiduciary Standard of Excellence and focused on fiduciary delegation - both aimed at mitigating your fiduciary risk.

CEFEX Certification

The CEFEX Certification is an ISO-like independent and unbiased process of validating your organization's adherence to fiduciary best practices. The goal of the CEFEX Certification is to assure and demonstrate to donors, employees, and beneficiaries that their money is being well managed and maximize investment performance. By becoming a CEFEX-certified your organization can demonstrate its commitment to fiduciary excellence, set itself apart from peers, and gain a competitive advantage when competing for donor money. It will be able to overcome donor anxiety and mistrust and therefore maximize support of its donors.

 

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