Introduction: Asking the Right Questions
Choosing an investment manager is one of the most important decisions a charity board can make. Whether you're reviewing an existing relationship or appointing a new provider, trustees have a duty to ensure that their investment partner aligns with the financial, ethical, and governance needs of the charity.
This is especially important for churches, faith-based organisations, and values-led charities.
To help guide that process, here are 10 key questions every trustee should ask—and why the answers matter.
1. How well do you understand the charity sector?
Charities are not corporations. You have distinct legal responsibilities, regulatory expectations, and operational realities. Your investment manager should be fluent in:
- Charity Commission or OSCR guidance
- Restricted vs unrestricted funds
- Ethical governance frameworks
- Audit and reporting requirements for trustees
At Epworth, 100% of our clients are charities. We are built around your context—not the other way around.
2. What is your ethical investment policy—and how is it applied?
Ask for a written, detailed ethical investment policy that includes:
- Specific exclusions (e.g. fossil fuels, gambling, arms)
- Thresholds or tolerances (e.g. <5% revenue exposure)
- Screening methodology and data sources
- Oversight by ethics committees or church bodies
If your manager can't clearly explain how ethics shape investment decisions, it's time to look elsewhere.
3. How do you engage with companies—and what impact does it have?
Engagement is a core part of ethical investment. Ask:
- Do you vote at AGMs?
- Do you meet with company leadership?
- Have you filed any shareholder resolutions?
- What are your escalation processes?
Explore Epworth’s stewardship and engagement outcomes.
4. How are your funds structured, and who are they available to?
Charities should seek:
- FCA-authorised funds
- Daily or weekly dealing
- Exclusivity to charities or clear alignment with charity governance
- Transparency in how pooled funds are managed
At Epworth, our funds are available only to UK registered charities.
5. Can we see your full holdings and sector exposure?
Transparency matters. Ask:
- Can we view current holdings at any time?
- How often are reports updated?
- Can you provide ethical exposure analysis?
If your manager won’t show you what you own, they’re not treating you like a partner.
6. Do you support Investment Policy Statement (IPS) development?
A clear IPS helps trustees align investment practice with mission and manage risk responsibly.
Ask whether your investment manager can assist with:
- Drafting or reviewing an IPS
- Ethical policy development
- Governance reviews and trustee training
Epworth offers templates and bespoke support for IPS drafting.
7. How do you handle short-term reserves alongside long-term investments?
Ask about products like:
- Cash funds or deposit alternatives
- Multi-asset funds for longer-term growth
- Solutions for sub-accounting, fund designation, or liquidity needs
You should not have to compromise on ethics for the sake of cash management.
8. How do you report performance—both financial and ethical?
A good manager should provide:
- Clear quarterly performance reports
- Benchmark comparisons
- Ethical screens or controversies identified
- Engagement summaries
You shouldn’t need a PhD in finance to understand how your investments are performing.
9. Can you tailor your approach to our theological or faith-based needs?
If you are a Christian organisation, ask:
- Do you align with Mensuram Bonam or JACEI guidance?
- How do you engage with denominational values?
- Can you accommodate particular exclusions or ethical requests?
At Epworth, our ethics are built around Christian moral teaching, not generic ESG.
10. What makes your approach different from other investment managers?
This is the big one. Listen carefully for:
- Substance, not slogans
- Experience with charities
- Evidence of ethical action
- Long-term relationships and trust
At Epworth, we’re not a private wealth firm that happens to serve charities—we exist entirely for faith-based and values-driven investors.
Conclusion: Discernment Is Part of Stewardship
As trustees, you're called to act wisely and faithfully. Asking the right questions helps you choose the right investment partner—one who respects your values, supports your mission, and delivers both performance and integrity.
Want to ask these questions of us? We’d be glad to answer. Contact Epworth for a no-obligation conversation.
Discover our approach to ethical investing for charities