Reply To: Nonprofit Reserves: The Real Deal – Questions for Panelists


    I’m the ED of statewide land trust with an annual operating budget of $510k that has a 16-month operating reserve. As a relatively young organization (20 years), some months 10 or so years ago our income was lean and we struggled to make payroll. As a result, the board responsibly focused on building an operating reserve. Most members think that an operating reserve can never be too big. I’ve been pushing to invest/spend 1/2 of the reserve on hiring new staff to better serve our mission. I’m getting pushback. What “arguments” do you suggest that I use to convince them that our reserve is far more than ample and would be best used “investing” now in the organization’s mission?

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