Maintaining sufficient reserves to protect your not-for-profit organization
Maintaining insufficient reserves can put a not-for-profit organization at serious risk in the event of a budget shortfall. But a number of organizations have been criticized recently for the opposite problem — retaining excessive reserves. What levels of reserves within net asset balances are appropriate for not-for-profit organizations to maintain?
In this new white paper, Maintaining sufficient reserves to protect your not-for-profit organization, Grant Thornton tackles the complex issue of reserves, addressing questions such as:
- Should temporarily and permanently restricted net assets be included when determining reserve levels?
- Are quasi-endowment funds a good idea?
- Is there an average percentage that constitutes a reasonable reserve?
- What constitutes excessive reserves?
The white paper explores these and other pressing questions related to managing not-for-profit endowments.
Related documents
The power of reserves: examining sufficiency (webcast presentation) In a recent webcast, Grant Thornton and the National Association of College and University Business Officers (NACUBO) covered the power of reserves impacting higher education institutions and other not-for-profit organizations. View this slide presentation to expand on reserves and the impact to your organization.
