Unbudgeted expenses? Operating reserves can help
Abstract: Even the best-laid plans can go awry. A major grant an organization counted on could fall through or its facilities might require emergency repairs. And, as many nonprofits have learned in recent years, even slightly lower-than-anticipated donations can make meeting obligations difficult. This article discusses how to increase and manage cash reserves to help cushion the blow of unbudgeted expenses, while also noting the dangers of having too much in reserve.