Forecasting investment income

Forecasting investment income depends upon what proportion of total income the organisation expects to derive from investments. For many voluntary groups, this will be modest. For an endowed grant-making trust, all of whose income comes from investment, this forecast is vital in establishing funding levels for the coming year.

If a professional investment manager administers the funds, he or she should provide projections of investment income.

SWOT analysis of investment income

Strengths

• Portfolio
• 'Free'
• Investment management

Weakness

• Trustees' investment
• Act limitations
• Difficult to establish
• Risk management

Opportunities

• Strong market
• Maximise returns

Threats

• Market collapse
• ACT
• Non-ethical
• Trust and confidence

Where next?

Back to what is a budget?