🚨 The Safety Net Your Mission Deserves

A financial reserve is your nonprofit’s backup power—ready when cash flow gets bumpy, funding is delayed, or a big opportunity lands in your lap. In short: no more late-night stress over the bank balance!

 

💡 What’s a Reserve, Anyway?

Think of a reserve as your nonprofit’s “emergency stash”—set aside outside your regular operating budget. We’re talking about liquid, accessible funds (not a jar of coins under the office plant).

 

🎯 The Advantages: Build, Impress, Grow

  • Smooths out cash flow hiccups

  • Builds confidence with donors and board members

  • Powers smart, long-term planning

  • Fuels sustainable program expansion

 

📊 How Much Should You Stash?

Shoot for 3-6 months of operating expenses—every dollar helps! Can’t start big? No worries. Consistency is more important than size!

 

🛠️ Steps to Start Today

  • Budget for a surplus—yes, it’s possible

  • Champion unrestricted donations—flex those funds

  • Diversify revenue so you’re not stuck with one income stream

  • Educate your supporters—reserves are responsible, not stingy!

 

🏦 Where Should It Go?

Give your reserve a job: money markets, CDs, or other safe, income-generating accounts. Don’t just let it collect dust—let it earn for you.

 

📋 Quick Reserve Hacks

  • Write a clear reserve policy

  • Get board buy-in

  • Review (at least) annually

  • Don’t tap reserves for anything less than a real emergency, no matter how tempting that new office espresso machine is!

 

Bottom Line: Stability = Growth

A solid reserve means a stable, thriving nonprofit—and a lot less nail-biting about payroll.
Need help building or managing your reserves? Our accounting pros are here—because even superheroes need someone to balance the books! 😎💼