How nonprofits of varying sizes can tap into big‑firm investment expertise

You dedicate your time and expertise to a nonprofit you care deeply about—whether in a paid role or as a volunteer. Your nonprofit is working hard to make a difference, and in that pursuit, every dollar counts. Your mission aims to have a significant impact—and even if resources are limited, you can realistically think “big” when it comes to services and solutions that might help your organization flourish.

The institutional-level service, support, and investment strategies provided by large asset management firms at the institutional level can also be available to your nonprofit. It is possible that a dedicated outsourced chief investment officer (OCIO) team can effectively leverage its organization’s size and resources to your benefit–and provide tailored solutions and high-touch service to match your nonprofit’s unique needs.

OCIO services are offered by many asset managers, but at Fidelity, we take a thoughtful and fee-efficient approach to providing the “size advantage” to our nonprofit partners by focusing on these key areas for you.

1. Investment portfolios built specifically for nonprofits: Endowments and foundations deserve thoughtful portfolios constructed with their needs considered, including their unique time horizons. Every nonprofit should have access to portfolios that aligns with their priorities, whether that means targeting strong returns, ensuring liquidity for day-to-day needs, supporting spending policies, or managing risk.

In-depth insights by a team that lives and breathes nonprofits, and proprietary investment research that is driven to help ensure your portfolio exposures are continuously leading-edge and responsive to market conditions.

2. Institutional pricing: You can access cost efficiencies typically reserved for large organizations. In our view, OCIO fees should be modest relative to the value delivered. According to Cerulli Associates' “U.S. Outsourced Chief Investment Officer Function 2025” survey,¹ about 76% of nonprofits with assets between $51 and $100 million pay advisory fees in the range of 11 to 30 basis points. An additional 18% of organizations in this asset tier pay less than 10 basis points.

3. Governance support: OCIOs function as co-fiduciaries, with daily oversight of portfolio risks. As such, our investment team can make timely decisions, helping avoid delays that are common with volunteer committees. The investment committee and board remain fiduciaries, but their role shifts to strategic oversight and less tactical day-to-day responsibilities.

4. Investment policy reviews: OCIOs help nonprofits craft their investment policy statement and strategic asset allocations, which serve as the blueprints to the investment portfolio. We also collaborate with our nonprofit clients to review their investment policy statement annually.

Ancillary services: Beyond traditional investment management, many OCIO providers deliver a broad suite of services designed to support nonprofits in fulfilling their missions. These offerings can include custody, cash management, banking solutions, grants management, sub-accounting, and philanthropic consulting, among others. Collectively, these philanthropic support services help nonprofit organizations enhance their impact by strengthening key areas such as strategic planning, governance, and long‑term organizational sustainability.