Research Paper on The Internal Bank

Co authored by Jon Speare and David Hertan, Commonfund Strategic Treasury Solutions

The Internal Bank: The next opportunity in operating and non-endowment assets

This paper, the first in a series on the internal bank concept, focuses on enhanced management of limited-term assets and effective analytic tools to monitor these portfolios. Subsequent papers will address the liability side of the balance sheet and resource planning.

By integrating the components of its treasury operation into a single cohesive structure, a nonprofit complements the management of its long-term assets as it seeks -- consistent with sound risk management practices -- to maximize the organization’s net worth and support its mission.