That kind of nonprofit can't maintain reserves without justification. It received tax-deductible donations for a purpose and has to spend its money for that pur

That kind of nonprofit can't maintain reserves without justification. It received tax-deductible donations for a purpose and has to spend its money for that purpose. It has a lot of flexibility wrt what level of reserves are sensible in its case or when to spend received donations, but the taxman will ask when that money is going to be spent.