A good practice for all nonprofit organizations is to have an “emergency fund” in reserve to cover a potential shortfall of revenues versus expenses. A cushion can also be helpful if/when other spending needs arise. So, how much should your organization set aside? Our answer is: it depends. Each nonprofit is unique and can experience distinct unexpected circumstances that may affect their long-term financial health.
With that said, experts from Raffa Investment Advisers and Bernstein Private Wealth Management are here to help. They will lead a discussion on how to think about your reserves in the context of today’s operating environment and while factoring in the financial risks and opportunities of your organization. Specifically, the team will:
• Present a benchmarking study on how organizations size their reserves
• Discuss today’s capital markets/macroeconomic environment and its impact on reserves
• Provide a framework of how to evaluate financial risks of your organization
• Share case studies in how they have supported their nonprofit clients size their reserves
• Outline best practices related to reserves/investment policy and asset allocation
All of this is to be shared in an effort to provide actionable insights for audience members to support their organizations in prudent financial decision-making now and into the future.
