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As someone who has worked in the non-profit sector for several years, having a cash reserve is a best practice. Six months is on the smaller end. If you don't h
by pwthornton 14y ago
As someone who has worked in the non-profit sector for several years, having a cash reserve is a best practice. Six months is on the smaller end. If you don't have cash reserves and fund raising falls short, you have to start laying people off, cutting programs, turning off servers, etc. Or if the global economy tanks and people stop donating, your whole non-profit may be in trouble.
Six months of cash to cover all expenses is a selling point of Wikipedia, not a detraction. I want to donate to and work for financially prudent non-profits. If anything, I'd like to see their cash reserves upped to more like a year or so.
- tommorris 14y agoSix months was the last time I attended a fundraising discussion meeting. I think that there may be long-term plans to try and keep a bigger cash reserve. It's what happens when non-profits grow up.
- kamjam 14y agoIt's a very interesting point, and i guess the issue is if you have to start laying fundraisers off, you have no fund raiser to raise funds. Kind of a vicious circle situation!
- cpeterso 14y agoPlus, donations are not flat through the year. In the US, at least, donations spike in December because it's the last chance to qualify as a tax deduction for the current tax year.