No, it is not appropriate for Christians to assume a huge amount of risks in their investment portfolios, as they are only stewards of God’s wealth. It is not a common practice for trustees to engage in high risks with the wealth put their management (Albrektson , 2000). Considering that Christians are considered as trustees of God’s wealth, it would be the height of irresponsibility and greed to take advantage of God’s trust in our abilities to carefully look after his wealth.
The only time that such a practice would be considered appropriate is when it is conducted as a long-term investment strategy (Albrektson , 2000). This is where wealth may be set aside or invested for future school fees needs or for retirement benefits.
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No, it is not appropriate for nonprofit organizations that rely on donations to invest in risky assets such as the stock market. Investing in risky assets such as the stock market is considered as a gambling endeavor (Adelino et al., 2015). The odds are likely to sway either way, thus, the nonprofit organization stands a chance to lose the monies donated for other social drives. It would be unethical and immoral for an organization that relies on donations to try getting more money using the donated funds (Adelino et al., 2015). The simple fact that it is a nonprofit organization means that it is not supposed to accrue any additional wealth from investment and gambling activities of the donated money.
Assuming that there should be limits, appropriate investments would be those that do not risk the donated monies such as bank interest rates. Alternately, inappropriate investments are those that would put the money at risk of being lost (Adelino et al., 2015). Gambling and stock market practices are the classic examples for this category.
The above positions have a variety of implications. First, donated money will not be lost through risky financial practices. Secondly, donated monies may multiply when put under safe investment strategies; hence, increasing the revenues for such organizations. Lastly, these practices will contribute to responsible financial practices among Christians and not-for-profit organizations.
Reference
Adelino, M., Lewellen, K., & Sundaram, A. (2015). Investment decisions of nonprofit firms: Evidence from hospitals. The Journal of Finance , 70 (4), 1583-1628.
Albrektson, R. (2000, October 23). Is The Stock Market Good Stewardship? Retrieved 2017, from Christianity Today: http://www.christianitytoday.com/ct/2000/october23/38.120.html
