Understanding Reserves
Channel: Propel Nonprofits
Date: 2018-02-06

Whether you call it the rainy day fund, a nest egg, or your safety net, reserves are an important and sound nonprofit management principle. There are three main reasons why you may want to have a reserve fund: for unforeseen expenses or cash shortfalls, replacement or repair of equipment or property, or unexpected opportunities. 

But, how much do you need in reserve? When and how do you use your reserves? We're here to clear things up for you a bit. We'll cover tips like calculating your fixed and operating expenses, funding depreciation, fundraising campaigns and operating surplus.