One way that nonprofits have been coping with uncertainty in their income streams while continuing to deliver services is taking advantage of operating reserves. An operating reserve is an unrestricted fund balance set aside to stabilize a nonprofit's finances by providing a cushion against unexpected events, losses of income, and large unbudgeted expenses. They can help you weather serious bumps in the road by buying time to implement new strategies.  

To help organizations think through how to prudently manage their reserve funds, we have created an Operating Reserves Overview and Policy Example. This resource will help you assess when using reserves make sense, consider how to replenish reserves, understand different types of reserves, and begin crafting a policy that makes sense for your organization.

Read the February Issue of Nonprofits Count to learn about how to assess your organization, our new partnership with MCN, upcoming training opportunities, and more.