A human services nonprofit—let’s call them “The Miller Center”—sent Hugh Johnson Advisors a Request for Proposal. We responded along with four other firms vying to provide services to the nonprofit.

After the RFP process was complete, Hugh Johnson Advisors was selected by the nonprofit as the investment manager for their $3 million endowment. When The Miller Center was asked what factors caused the nonprofit to select us, they responded that our investment approach is well suited to small and mid-sized nonprofits. It appealed to their board of volunteer fiduciaries that a single investment manager could provide them with access to a broadly diversified portfolio containing all important, investment-grade segments of the stock and bond markets. They also found our history of achieving index-like returns with less risk compelling.

In working with The Miller Center, Hugh Johnson Advisors has provided services beyond investment management. We aided in the redrafting of the nonprofit’s Investment and Spend Policies to be compliant with NYPMIFA and helped draft appropriate board meeting procedures and minutes to fulfill the requirements of the regulation.

We discussed at length the organization’s socially responsible investing goals and included in the Center’s investment policy sections that expressed their socially responsible approach in a manner that remained practical and implementable. We introduced the nonprofit to the Community Loan Fund, after completely independent due diligence, as a prudent avenue to fulfill aspects of the socially responsible investing mission within their community.

Hugh Johnson Advisors has met quarterly with The Miller Center for the past 10 years and, in addition to providing high-level reporting and consultation on their investment portfolio, we have “brainstormed” with management and board members about strategies for addressing the gap between their revenues and operating expenses.

As with all of our nonprofit relationships, The Miller Center pays a discounted management fee, and we regularly support the organization’s mission with our own support.

Hypothetical Example