Well-managed investments play a critical role in the sustainability of many organizations, including nonprofits. A key element is your nonprofit’s spending policy, essentially the formula used to determine how much of the value of your investments will be tapped each year for such expenses as operating costs and capital projects. It’s generally advisable to stick…
Tag: sustainability
Time to Replenish: Are Your Operating Reserves at a Good Level?
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…