LIVE CHAT: Monday, June 25, 1:00-2:00 pm (ET)
An operating reserve is your nonprofit's "rainy day fund" for when its cash flow unexpectedly drops. "Reserves should be used to solve timing problems, not deficit problems," according to the Nonprofits Assistance Fund.
Conventional wisdom says that three to six months' worth of operating expenses should be in your reserve. Yet survey after survey continues to show that as many as 50 percent of nonprofits have nothing in there reserves at all. This is a highly risky financial position for an organization to be in when the economy is still volatile and foundation giving is predicted to grow slowly over the next few years.
How much should your nonprofit have in reserves? How do you build them up? Get answers next Monday, June 25, 1:00-2:00 pm ET, when we will have a live chat on this topic with Alice Richardson Antonelli, senior finance advisor of the Nonprofit Finance Fund. We will devote most of the hour to your questions!