# Investing and Finance

*Exported from [Holy-Writings.com](https://www.holy-writings.com/) on 2026-06-19 — 1 clipping.*

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> Dear Bahá'í Friends:
> 
>  Thank you for your inquiry, via e-mail, dated May 10 and concerning  several
> issues raised in a May 9 Internet posting by Mr. xxxx.
> 
>  These are all very timely questions, as the growing maturity of the  friends
> and their institutions, as well as the generally greater  amounts required to
> attend to the needs of the Faith, lead us into  financial and spiritual
> territory that has hitherto been largely  unexplored. Moreover, our emergence
> from obscurity demands that the  investment decisions we make, whether
> individually or collectively  through our institutions, reflect the principles
> of the Faith and the  highest standards of integrity, quality and concern for
> the well-being  of the fellow members of our human family.
> 
>  First, and with regard to your specific question, the basic principle  was
> enunciated in a letter written on behalf of the beloved Guardian  and published
> in Letters to Australia and New Zealand, p. 20: "The  only advice the Guardian
> wishes to give is that whatever investment  the friends make they should do it
> with the utmost caution, as  economic and financial conditions are at present
> most unstable and  even precarious." The Universal House of Justice further
> stated, in a  set of guidelines for National Spiritual Assemblies that was
> shared  with local bodies by our National Assembly on February 24, 1992, that
> "The National Spiritual Assembly itself must ensure that proper  provision is
> made for preserving the value of financial reserves by  wise and careful
> management."
> 
>  The National Spiritual Assembly has, in its own practice to date,  taken this
> guidance to mean that investment instruments must reflect  the very best risk
> available in the market; return is a less important  criterion. Further, with
> the rapid proliferation of investment  vehicles, not all of whose effects are
> known or predictable even to  highly accomplished financial professionals, an
> extra measure of  caution is called for---the risks affect both the sacrificial
> offerings of the believers, a sacred trust, and the future development  of the
> Cause. 
> 
>  These criteria perforce narrow the range of acceptable investment  options for
> Bahá'í institutions. Most government securities,  certificates of deposit from
> commercial banks with the highest ratings  (at least AA-/Standard and Poore
> rating and Aa3/Moody's Investors'  Service rating), and so-called "A1/P1"
> commercial paper from leading  corporations whose businesses conform to our
> standards as Bahá'ís  would likely be on that short list. Maturity limits, i.e.
> the time  periods (tenors) for which funds can be invested, can be somewhat
> flexible; the intent would be to match cash flow patterns and to avoid
> speculation on market trends, a practice which could subject an  institution's
> investments to additional risk. 
> 
>  In practice, the paucity of cash available to the National Spiritual
> Assembly, owing to the relatively modest contribution income of the  last
> several years, further limits the Assembly's options, whether in  terms of
> investment tenor or of the vehicles used. The National  Spiritual Assembly does
> have an investment policy which guides its  staff in the discharge of this
> responsibility, and local Spiritual  Assemblies would be well-advised to create
> their own policies that fit  their particular circumstances. 
> 
>  Naturally, individuals have greater latitude in choosing their  investments.
> Mr. xxxx makes some cogent points about mutual funds;  these obstacles are
> not, however, insurmountable in our view. Diligent  research can disclose the
> various holdings of the mutual fund, at  least by industry sector, and where
> that information is not available,  the believer always has alternative options
> to a prospective  investment.
> 
>  Regarding a "Bahá'í money manager," there are already a number of  Bahá'í
> professionals in the field of finance, of course, but we are  not aware of any
> believer who is himself or herself the manager of a  fund, or of a fund
> specifically directed to the use of Bahá'í  investors. The National Spiritual
> Assembly has given some  consideration over the last several years to the
> creation of different  kinds of investment options for the friends, but staff
> has so far been  too overextended with existing priorities to give this subject
> the  study and community dialogue it requires.
> 
>    Finally, the creation of a national foundation is an ambitious notion  which
> certainly has merit. We question whether the institutional and  administrative
> capacity is yet present to manage such an entity, and  in any event we fall
> back to the previous point: there are not, as  yet, the human resources
> identified or available to perform the  rigorous analysis prudence would demand
> in this connection.
> 
>  One important aspect that would have to be meticulously considered for  these
> purposes is the guidance, given by the Universal House of  Justice as recently
> as 1989, that the creation of a financial  institution associated with the
> administration was not deemed timely.  The Supreme Body did leave open the
> option that individual believers  could establish some kind of private bank,
> but stated "it should be  conceived entirely as a private, commercial
> undertaking, and entered  into on sound business lines." (On behalf of the
> Universal House of  Justice, 13 August 1989)
> 
>  The National Spiritual Assembly is committed, however, to establishing  a
> viable planned, or deferred, giving program during the Four Year  Plan. This
> can begin with every believer, who must, in accordance with  the provisions of
> the Kit?b-i-Aqdas, make a will in order to testify  to her or his belief in God
> and to dispose of personal belongings.  This act of obedience attracts
> blessings in and of itself, while the  "execution of the provisions of the will
> causes the spirit of the  deceased to rejoice in the Abh? Kingdom (on behalf of
> Shoghi  Effendi)." More complex vehicles can and should be explored by the
> friends, and this Office is presently developing a capacity to assist  the
> believers in this process. Additional details will be communicated  as they
> become available, including the interesting possibility of a  national
> conference for professionals in this area.
> 
>  Finally, we must admit that we take some exception to the comment that  there
> is a "great deal of spiritual ambivalence about money in the US  Bahá'í
> community." There is always room for a deeper understanding of  every aspect of
> the Faith, the role of material means included. The  community, however, was
> set a demanding test in the year just past, a  test of obedience and firmness
> in the Covenant whose outward  manifestation was financial: would we give our
> share for the Arc? Tens  of thousands of believers, young and old, men and
> women, rich and poor  alike, stepped forward, doing whatever they could out of
> love for the  Cause, for Bahá'í'll?h, and for His Universal House of Justice.
> The  result: more than $23 million was offered to the Arc and an additional
> $13 million offered to the national and international funds. There may  be some
> friends who do feel ambivalence; they would appear to be a  dwindling minority,
> while another, more vital group is pressing  forward to seize victories for the
> Cause. 
> 
>  The more important questions seem to us to be whether our offerings  will be
> accepted by the Blessed Beauty, and whether the community will  maintain the
> commitment to the Faith's future that we have so  strikingly demonstrated in
> the last 12 months.
> 
>  We hope this information is useful to your consultation, just as the
> questions have been helpful for us to consider here. Please convey  loving
> greetings to the members of your esteemed Spiritual Assembly  and your
> community.
> 
>  In His service, xxxx Finance Coordinator
>
> — *Investing and Finance (Used by permission of the curator)*