VIDEO PODCAST: Why Nonprofits Should Have Operating Reserves [SUBSCRIBERS-ONLY]

Ben and Mike discuss the reasons why operating reserves are essential for the financial health and sustainability of nonprofit organizations, the short-term and long-term purposes of operating reserves, lessons learned from past economic disruptions, and some recommendations for operating reserve policies.

CHAPTERS

00:00 - Intro

03:15 - Having operating reserves to protect against short-term disruptions

06:40 - Having operating reserves to build working capital for long-term planning

09:10 - How operating reserves open possibilities for growth, funding, and expanding programs

13:24 - Why the short-term purpose of operating reserves gets more attention

15:02 - Lessons learned from past disruptions

17:28 - Recommendations for operating reserve policies

21:39 - Connecting operating reserve goals to the budget

24:49 - Closing thoughts on spending policies

FURTHER READING

Remembering the Long-Term Purpose of Operating Reserves

Operating Reserve Policies are a Perfect Vehicle for Targeting Your Budget’s Bottom-Line