Investing for a Non-Profit College Organization

[GopherStache]

Hello everyone, new to the community here!

I'm the treasurer for a college organization and we typically have about $18,000 of untouched money each year ((account low for several years), typically gets up to $110,000 throughout the year)) that sits in a checking account. I had proposed that we invest $10,000 of that money and the rest of the E-board is approving but wants more information. After doing some research I believe I've decided to put $5,000 in Vanguard VTSMX and $5,000 in Vanguard VBMFX and pitch a 10 year model to the board. I was wondering what thoughts you all had on this?

Would you recommend I simply go through vanguard to do this? Use an App like Robinhood, use something like Betterment?
Does anyone know if there are any major conflicts with a non-profit 501c3 group investing (I couldn't find any)?
I couldn't find any withdrawal fees for these index funds (aside from the expense ratio and maybe account service fee), will this money be liquid?
Also a big question- Do i just but these index funds or do they have to be in the form of a IRA or non-retirement account or something?

Hope my lingo makes sense - somewhat new to all of this.

Thank you so much for your insight and opinions!

[expatartist]

Given your username I betcha you're from my alma mater! I got a BFA in Painting from your org.

Paging @lhamo  who's an expert with research orgs, nonprofits, and Vanguard investing.

[GopherStache]

Thank you!

[Goldielocks]

We invested our endowment (for a non-college not for profit) in a fund that generates a very high level of income, but the capital asset value may fluctuate up and down. 

This is the type of non-registered investment that retirees looking for income instead of growth use.   Yes, it is a higher cost mutual fund, actively managed, but the small increment in management fee for the quality we get as an org is worth it to us.   We use that annual income to pay for on-going maintenance expenses.

I find that the added layer of security of having an actively managed fund and advisor serves us well as a not for profit that handles other people's money.   Well worth the very small fee (they reduced their fee as it is a non profit).

The large cash float that builds up -- I think the treasurer just puts it into short term treasury bills that are cashable... as we use the money within a year, typically.