5 investment fees every nonprofit should understand
Posted by [email protected] on May. 23, 2026 / Subscribe 0
Author: Truist Wealth
Below is an excerpt from an article available in our nonprofit resource center. It is designed to help your organization ask more informed questions as part of your investment decision-making process. To read the full article, click here.
What’s a fair price to pay for investment management services? Are we currently paying too much? They seem like simple, straight-forward questions. But the answers can be surprisingly nuanced based on your organization’s needs and circumstances. As organizations continue to require greater transparency and accountability, most investment firms are responding with better fee disclosure. And these investment management fees can generally be classified into several clearly defined categories.
The following investment fee overview is designed to help your organization ask more informed questions as part of your investment decision-making process.
Advisory fees
Investment management fees are partially driven by the level of service provided. A full-service Outsourced Chief Investment Officer (OCIO) solution where the investment provider acts in a fiduciary capacity will typically include:
- Investment policy review and development
- Asset allocation modeling
- Manager research and due diligence
- Fiduciary portfolio management
- Customized performance reporting
- Independent peer ranking
- In-person presentations
- Strategic planning, consultative advice, and thought leadership materials
- Custody and safekeeping of assets
Independent, conflict-free OCIOs that don’t offer proprietary products will generate most of their compensation in the form of an investment advisory fee. That fee, though, will likely vary based on the investment strategy. Long-term portfolios with a mix of fixed income, equities, and possibly alternative investments tend to carry the highest price tag. Intermediate portfolios with fixed income assets greater than 12 months are generally a mid-priced solution. And short duration and liquidity portfolios tend to be the least expensive—but also usually generate the lowest return.
Click here to read the full article, which includes a primer on additional fee types including:
- Fund fees
- Indirect fees
- Transaction fees
- Administrative fees
Plus a handy checklist to help you compare provider fees on an “apples to apples” basis.
Value. Worth. Fairness.
Fees are a fundamental component of investment management services. But those fees must be reasonable, transparent, and fully disclosed. For any fiduciary, a thorough understanding of the fee structures within an investment portfolio is an essential part of your duties.
A thoughtful analysis of fees will include a parallel analysis of the level of service provided and investment acumen resourced in exchange for those fees—as value received and delivered should be the key metric in any assessment of investment service providers.
About Truist Institutional Investment & Advisory Services
(formerly known as Foundations & Endowments Specialty Practice)
Truist has more than a century of experience working with not-for-profit organizations. Fiduciary stewardship is the heart of our culture. We’re not just a provider, but an invested partner—sharing responsibility for prudent asset management. Our institutional teams include professionals with extensive not-for-profit expertise. These professionals are actively engaged in the not-for profit community and are able to share best practices that are meaningful to their clients. Team members offer guidance and advice tailored to the various subsets of the not-for-profit community. Our teams deliver comprehensive investment advisory, administration, custody, trust and fiduciary services to institutional clients across the country. Clients we serve in the not-for-profit community include foundations and endowments, educational institutions, healthcare institutions, senior care centers, faith-based organizations, trade associations, and community, arts and cultural organizations.
What sets us apart
In addition to top-tier investment management services and world class administrative support, it’s our mindset. We don’t just work for our clients – we serve as an extension of their teams. We’re dedicated to amplifying your impact and want to see your organization succeed.
Need more info?
Learn more about we can strengthen your financial footing and further empower your organization. Search for your nearest specialist online at truist.com/foundationsandendowments or call us at 866-223-1499 to request a meeting.
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