Operating reserves — generally, unrestricted assets you can easily tap — are often called “rainy day funds.” But stable reserves are critical for far more pressing reasons than the metaphorical rainy day. Many nonprofits, for example, have drawn on their operating reserves since the spring of 2020 to cope with the economic backlash of the…
Tag: operating costs
COVID-19 Forces a Focus on Operating Costs
Troubling revenue losses COVID-19 hit nonprofits hard, fast and right where it hurts — revenues. Organizations of all kinds saw funding dry up as major events were canceled and donors held back in fear for their own financial stability. Based on surveys conducted from March through May 2020, for example, the Massachusetts Nonprofit Network found…