Operating Reserves: The Key to Building Financial Flexibility

Operating Reserves: The Key to Building Financial Flexibility

August 17, 2015 By: Bess Hamilton Foley

Associations and nonprofits with little or no operating reserves could be just one crisis away from financial disaster. The Nonprofit Operating Reserves Initiative aimed to help such organizations enhance their stability. Here are the first steps your association can take to build deeper reserves.

The Nonprofit Operating Reserves Initiative Workgroup (NORI) first began meeting in 2007 to address the alarming lack of liquidity among small and midsized nonprofits. For nonprofits and for-profits alike, the 2008 recession and its lingering effects resulted in many of these undercapitalized groups having to close their doors, significantly curtail services, or merge with other entities. ...