Reply To: Nonprofit Profit Reserves: The Real Deal – Reflection


    I work both at a private TK-12 school and am on the board of a social service agency focused on providing food to low income people that is mostly staffed by volunteers.

    From the school perspective, we were did not experience a drop in tuition revenue because we pivoted to online and pivoted back to in-person quickly. When students were not on campus, expense levels dropped significantly, (e.g., we normally subsidize bus transportation, so when the bus stopped, the subsidy stopped). We also received a PPP loan. As a result, we did not dip into reserves.

    From the social agency perspective, we lost all of our volunteers immediately, so had to begin paying people to provide services. We experienced a big increase in donations which helped tremendously. We also received two small PPP loans (because the staff is so small) and did not have to dip into reserves. Donations have dropped since the pandemic, but we’ve been able to sustain reserves.

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