[/quote]In reality they will probably have a mixture of different types of investment, suitable for both short and long term cashflow requirements. You can assume that professional advice will be involved in those decisions.
I am not against low risk short term sensible investing while money is waiting to be deployed , and professional advice should be taken ,my personal belief is that shares on their own or in share only funds are high risk and the FSA disclaimer is their for a very good reason.I think you will find that problems don’t behave like that – if they were static and constant it would be a lot easier though. However, they (charities) will have a fair idea what would be a useful way to deploy resources, and when they plan that, and identify that some of the required funding doesn’t need to be released for a while yet, what would be the best thing for them to do with that money in the meantime?
Any fund manager will tell you that when buying shares the strategy is long term buy and hold. In order to get a return you must be prepared to be in it for the long term , money that may need to be released in the short to medium could have lost a fair whack in the stock market.
I would have thought that the needs of recipients would be on a short to medium term basis not in ten years time.