Your Nonprofit is Emerging
Your organization is managing day-to-day finances effectively with ample emergency funds. Your organization is gaining traction and so it’s time to optimize. When funds are held almost entirely in cash, your organization is exposed to a loss of purchasing power. In other words, inflation eats away at your funds. Also large pools of money concentrated in one type of asset makes the nonprofit less resilient in the face of the unknown.
Recommendations
-
Optimize your funds based on the time horizon of your projects, needed liquidity and the risk profile of the organization’s strategic plan. To understand cash optimization, review Three Questions to Optimize Nonprofit Cash Reserves.
-
Decide whether launching an endowment is right for your organization by reviewing, Nonprofit Endowments 101: What Are They and What It Takes to Maintain One and Start-up Endowment: Is Your Nonprofit Ready?
-
To keep your nonprofit board and leadership up to date on how your nonprofit funds are affected by the economic landscape, subscribe to Fairlight’s monthly nonprofit economic snapshot.
