Howdy everyone, I’m considering a position with a large non-profit foundation (over $5 billion AUM) as an investment analyst and would really appreciate some input/guidance/commentary. For those who haven’t read some of my other posts, I’m currently at an actuarial consulting firm in a non-investment related position. I’m planning on sitting for LI CFA in December of this year and have 2 actuarial exams. I’m wondering in particular about the following: 1. What kind of salary might I expect? I’ve been in my current position for about 13 months and have no investment experience. I would imagine that this kind of place would pay less than say Merill but does anyone know what kind of lower bound there might be for pay? Also, would bonuses be out of the question? 2. What about benefits/time off? I’ve heard that in general non-profits tend to give more vacation and richer benefits but I really don’t know what to expect. 3. How would a couple years’ experience at a place like this look on the resume? I’m guessing it would be viewed as significantly less prestigious than the top buy-side firms but would it at least be better than working at the state? Would this be considered good experience to land a buy-side role at an AM firm after a couple years? I’m very interested in the position not only because of the subject matter but also because the foundation does really great things and I’d like to play a role in that, even a tiny one. I think it would be great to be able to work in a role that adds some net positive benefit to society rather than just billing time doing ultimately insignificant (and tedious!) work. Hell of a time to be moving into a more financial role, but nothing ventured, nothing gained… Thanks in advance for your input/responses!
Anyone? Many thanks!
Seriously doubt anyone here has ever worked for a charitable and/or non-profit in any type of position, whether paid or volunteer. 
TIC
kkent Wrote: ------------------------------------------------------- > Seriously doubt anyone here has ever worked for a > charitable and/or non-profit in any type of > position, whether paid or volunteer. > > TIC I worked for the Boy Scouts for awhile. I wasn’t managing money but I did lots of canoeing.
I’ve worked for several non-profits, but not in this capacity. Also, foundations are non profit organizations, as are endowments, and both need to make sensible investment decisions, so its not as ridiculous a question as you might think. Foundation and endowment investment analysis is perfectly legitimate investment analysis, so I wouldn’t worry too much about the resume effects - its far better than not having an investment related position at all. Also, foundations and endowments may have more interesting portfolios because they tend to have longer time horizons and somewhat lower liquidity needs, so you may get more exposure to alternative assets, which could be interesting. As for salary, I have no idea other than that the rates are less than the for profit world. I think there was a CFA salary survey floating around this forum about a year ago or so; it mightgive some idea of what rates are like.
If your looking to break in to the industry this may be a good start. If your already in but want a much more relaxed environment that is a better balance of life vs work, this is it. Long term goal would be the CIO of the organization. Exposure to asset allocation, manager selection, monitoring, reporting, board of director education. You should inquire what their asset allocation looks like to determine how much exposure you’ll get to hedge funds, PE, VC, RE and other alternatives. Consider the job to be similar to an investment consultant, but internal opposed to external. No idea on pay. I’d expect you’d make a decent livng, but not enough to buy a second home in the Hamptons.
Having done an internship at a university endowment, here’s my experience. > 1. What kind of salary might I expect? I’ve been > in my current position for about 13 months and > have no investment experience. I would imagine > that this kind of place would pay less than say > Merill but does anyone know what kind of lower > bound there might be for pay? Also, would bonuses > be out of the question? $35,000-50,000 (on the lower end for endowments). Bonuses would be minimal to none. > 2. What about benefits/time off? I’ve heard that > in general non-profits tend to give more vacation > and richer benefits but I really don’t know what > to expect. Phenomenal. They know they can’t comp you the same so they give you lots of time off, good retirement benefits, etc. > 3. How would a couple years’ experience at a place > like this look on the resume? I’m guessing it > would be viewed as significantly less prestigious > than the top buy-side firms but would it at least > be better than working at the state? Would this be > considered good experience to land a buy-side role > at an AM firm after a couple years? Less prestigious than buy-side shops. But if it’s set up like a FOF, you have a number of networking opportunities. In general, I think you have a better shot at the buy side if you go to a for-profit firm. > I’m very interested in the position not only > because of the subject matter but also because the > foundation does really great things and I’d like > to play a role in that, even a tiny one. I think > it would be great to be able to work in a role > that adds some net positive benefit to society > rather than just billing time doing ultimately > insignificant (and tedious!) work. Total compensation at a non-profit = salary + bonus (if any) + enjoyment of helping others > Hell of a time to be moving into a more financial > role, but nothing ventured, nothing gained… > > Thanks in advance for your input/responses!