Session Information: Keeping reserves for a “rainy day” is a good practice for all nonprofits, but how much should your organization set aside? A percentage of annual budget? Three-to-six months? The answer is: it depends. Every nonprofit is unique and can experience distinct unexpected circumstances that may affect its long-term financial health. This engaging session focuses on how to conduct a risk assessment that will assist your nonprofit in quantifying financial risks and opportunities. Once completed, this risk assessment aims to assist in finding the appropriate reserve level for your organization.
Key Takeaways:
- Gain valuable insights into how much the “typical” nonprofit holds in reserve through Raffa’s Study on Nonprofit Investing.
- Understand how your organization can assess risks and opportunities to find the appropriate level of reserve.
- Learn how to build out a reserve policy that documents your review and serves as valuable context for future stakeholders.
