No “right” amount of reserve exists. Six months is the general target for the sector overall, but it depends on the size of the NPO.

The big donors will do their homework. Do yours too so you can confidently answer their questions.

TIP FOR SUCCESS

Stay ahead of tax and accounting changes

The reason: A dollar saved is a dollar legitimately being put to good use.

TIP FOR SUCCESS

Maintain an operating reserve

The reason: Better to have it and not need it than to need it and not have it.