Finance, Investing

Charities and NFPs Are Paying Too Much For Too Little

Many charities unknowingly overpay for complex investment strategies that underdeliver. Here’s how to see through the smoke and protect your mission.

Many Australian charities and not-for-profits (NFPs) pride themselves on careful management of their organisations funds. Yet when it comes to investing, many are unknowingly handing over thousands in hidden fees, without seeing the returns they deserve.

The problem? Complex jargon, multi-layered fee structures, and a misplaced belief that “more expensive must mean better.”

At Stockspot, we believe that smart investing shouldn’t be complicated and confusing, or require high-priced advice.

The illusion of sophistication

It’s easy to be both impressed and confused in equal measure by complex terminology and investment strategies and asset allocations.These over-complicated terms often serve one purpose: to obscure complexity, justify high fees and create dependency.

In reality, most of these approaches don’t deliver consistent outperformance. In fact, research shows that simpler, low-cost strategies outperform the majority of actively managed alternatives over the long run.

The cost of complication

Many charities are unknowingly paying:

  • Performance fees even when investments underperform
  • Brokerage and advice fees stacked on top of each other
  • Hidden margins that erode real returns

All of this adds up and the impact on your cause can be significant.

Consider this: Reducing your fees by 0.5% can make a significant difference in the long run. If you invest $100,000 this reduction could see you yielding an additional $22,500 increase after 10 years and nearly $600,000 after 30 years.

Reducing fees by just 0.5% can see you yield an extra $22,500 in 10 years

Reclaim control for your charity or NFP

By understanding the benefits of simple low cost investment strategies and seeing past the smoke and mirrors of flashy investment jargon, boards and investment committees can make more confident decisions, and keep more money working for their mission.

How to maximise your investment returns

Beyond simply trying to reduce fees, NFPs should be aware of some simple tactics they can implement to maximise their investments. These strategies highlight the importance of diversification and the automation of processes, like rebalancing. 

We’ve also highlighted the 5 red flags charities and NFPs should watch out for.

Learn more about how Stockspot can help your NFP invest and download our NFP Whitepaper
  • Chris Brycki

    Founder and CEO

    Chris has over 25 years of investment experience and spent most of his early career as a Portfolio Manager at UBS. Chris has been a member of the ASIC Digital Advisory Committee and volunteers as a member of the Investment Committee for the NSW Cancer Council. He holds a Bachelor of Commerce (Accounting/Finance Co-op Scholarship) from UNSW.


Founder and CEO

Chris has over 25 years of investment experience and spent most of his early career as a Portfolio Manager at UBS. Chris has been a member of the ASIC Digital Advisory Committee and volunteers as a member of the Investment Committee for the NSW Cancer Council. He holds a Bachelor of Commerce (Accounting/Finance Co-op Scholarship) from UNSW.

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