An operating reserve is your nonprofit's "rainy day fund" for when its cash flow unexpectedly drops. 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 don't even have reserves in place -- a highly risky financial position to have when the economy is still volatile and foundation giving is predicted to grow slowly for the near future.
So how much should your nonprofit have in reserves? How do you build them up? Get answers on Monday, June 25, 1-2pm ET, when we will have a live chat on this topic with our expert panelists, Jennifer Alexander, Professor at the University of Texas at San Antonio, and Alice Richardson Antonelli, Senior Finance Advisor, Nonprofit Finance Fund. We will devote most of the hour to your questions! Sign up now>>
Meanwhile, brush up your knowledge about operating reserves with our Knowledge Base Article.