The IPS is a written statement, formally adopted by a Board, that states a foundation’s mission and goals and how investment policy and practices will help achieve those goals.

The IPS will include a list of assumptions and expectations; constraints and limitations; and a well-defined investment strategy.

1. The critical importance of the Investment Policy Statement. 
2. Reducing Risk while maximizing Returns - Importance of Diversification. 
3. Importance of Managing Fees. 
4. What financial terms do you need to know to understand your asset managers? 
5. What is Modern Portfolio Theory?

The IPS will also include the process, whether formal or informal, for the selection, evaluation and the review of the outside managers and advisors. Very important, the IPS will designate the duties and responsibilities of all parties involved from the board, employees and managers and advisors.