[elisabeth]

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?

[elisabeth]

I’m the ED of a 20-yr old land trust with an annual budget of $510k and 16 months of operating reserves We were fortunate and did not need to use any of our reserves during the height of the pandemic (2020 ans 2021). We conservatively estimated that our individual donations would decrease 25% but that fortunately did not happen. We secured a $53,000 PPP loan in 2021 that we used 100% for staff salaries. We did not apply for a PPP in 2021.