Maintaining Sufficient Reserves to Protect Your Not-For-Profit Organization

 

Details

  • Type:
  • Published:
  • July 14, 2010
  • Author:
  • Frank L. Kurre, National Managing Partner, Not-for-Profit Practice, Grant Thornton LLP
  • Pages:
  • 9
  • Price:
  • Member: FREE
Classic Content

For not-for-profit organizations--indeed, for all organizations--maintaining adequate reserves is essential to establishing financial stability. Maintaining insufficient reserves can put an organization at risk, but maintaining excessive reserves can also be problematic. A number of organizations have been criticized for retaining excessive reserves. So what level of reserves should not-for-profit organizations maintain within their net asset balances? This is an age-old question asked by many not-for-profit organizations and their various constituencies. This paper offers some practical guidance to organizations that wrestle with this issue.

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