Alternative investments are rapidly becoming a common part of many diversified portfolios for tax exempt organizations, such as hospitals, universities, public and private foundations. These investments create a new level of risk- for unrelated business income, and penalties (both civil and criminal) and carry with them increased state reporting requirements and administrative cost. An alternative investment is an investment product other than traditional investments such as stocks, bonds or cash. Most alternative investment assets are held by institutional investors or accredited, high-net-worth individuals because of their complex nature, limited regulations and relative lack of liquidity.