NONPROFIT OPERATING RESERVES, by Sherri Rose, Nonprofit Auditor

The operating reserve is cash to be used in the organization. It is part of an overall cash flow plan. Reserves can be for a specific purpose; such as, fixed asset purchase or program expansion. General operating reserves are for use in the day to day operations to bridge budget shortfalls. Expert advice is to maintain an operating reserve of at least three months of budgeted expenses. Nonprofit operations are different across their missions and the communities they serve. This requires each nonprofit organization to consider their unique circumstances and goals to properly analyze and determine an appropriate operating reserve. Nonprofit auditors do not analyze as part of the audit. As

Featured Posts

Nonproft Operating Reserves

Recent Posts
Archive
Search By Tags
Follow Us
  • LinkedIn App Icon
  • Google+ Basic Square

© 2014 by Sherri Rose, CPA, PLLC

FOLLOW US:

  • LinkedIn App Icon