A nonprofit with a few years under its belt will eventually ask itself, "Should we have an endowment?” And while this is not a straightforward decision, on balance, the answer is yes. From a fundraising perspective, a nonprofit endowment demonstrates to prospective donors that this is an organization that has meaningful financial support to fulfill its philanthropic mission. However, managing an endowment requires Read More
How Much in Reserves Should a Nonprofit Have?
On May 1, 2023, Janet Yellen, the US Treasury Secretary, announced that the US might run out of cash in a month. This should have nonprofit leaders and board members seriously asking themselves how much cash on hand the organization has in the event of an emergency. Three years ago, the financial wreckage of the pandemic hit quickly so nonprofits without adequate reserves were able to rely on government and Read More
