In this episode of the Nonprofit Podcast, May Harris, Esq. visits with Kate Azar from PNC Institutional Management. Kate emphasizes the importance of nonprofits’ investment strategy, particularly when managing endowments. She stresses that seeking professional advice is crucial in this regard. While endowments can benefit nonprofits, Kate highlights that they may not suit every organization. The discussion delves into the advantages and disadvantages of nonprofits integrating AI into their operations. It explores how AI can enhance efficiency, streamline processes, and improve nonprofit decision-making. However, it also addresses concerns such as data privacy, inaccurate data, and ethical implications of AI implementation. May and Kate touch upon the aging of nonprofit board members and the necessity of succession planning. They underscore the importance of grooming future leaders within the organization to ensure continuity and effective governance. This discussion offers insights and practical advice for nonprofits navigating challenges and opportunities in the nonprofit sector.    IN THIS EPISODE: [1:07] Kate shares her responsibilities at PNC Institutional Assessment Management [2:21] Kate explains what she recommends to nonprofits starting an investment strategy [4:23] Should your nonprofit do an endowment, and should investments align with the values of the nonprofit [7:13] Kate states what a board should keep in mind regarding funding, investment accounts and endowments and reviewing policies [13:16] Kate and May discuss AI and its impact on nonprofits and policies regulating AI [23:44] Kate discusses the future of nonprofits, how board members are aging out and the need for succession planning    KEY TAKEAWAYS:  Endowments can be powerful tools for a nonprofit, but they are only suitable for some organizations. Nonprofits should stand ready with an answer if they have endowments as to why they should be fundraising.  Knowing where the donations are coming from is essential. Donors may have intentions and restrictions tied to the donation, and the IRS may also restrict how funds are invested and spent.   RESOURCES: For Purpose Law Group - Website Nonprofit Counsel - Website Nonprofit Counsel - Instagram Nonprofit Counsel - Linkedin PNC Bank, Institutional Asset Management & Investment Solutions Kate Azar LinkedIn   BIOGRAPHIES: May Harris has been a pioneer of nonprofit law practice for over a decade, having founded For Purpose Law Group in April 2012. She serves the nation's nonprofit sector with unparalleled expertise, prioritizing her client's missions, visions, and values. She specializes in nonprofit & tax-exempt organizations, social enterprise & business law, and estate planning & charitable giving.   GUEST BIOGRAPHY:  Kate Azar is a director of a nonprofit strategy for the west region of PNC Institutional Asset Management and a member of its Endowment and Foundation National Practice Group.  Using her knowledge of the nonprofit sector, she works with clients in various areas, including investments, governance and operational best practices, distribution strategies and philanthropic planning. For 17 years, Kate has worked with nonprofits, companies, governments and universities on board governance, finance, fundraising, advocacy, communications, board and staff training, and strategic planning. She has worked with The California Endowment, Disney, ESPN, Maria Shriver, and the British Royal Family. Kate served as CEO of the Long Beach Public Library Foundation, Director of Community Investment at the Boys & Girls Club of Laguna Beach, and Chief of Staff at an early-stage social enterprise. As a Chartered Sustainable Responsible Investment Counselor, Kate is trained to consider environmental, social, and governance factors in various investment strategies.