How Much Should Associations Hold In Reserve?
Calculating Your Target Reserve Level
and Kentucky Society of Association Executives
- Gain valuable insights into how much the “typical” association holds in reserve through Raffa’s Study on Nonprofit Investing for Associations.
- Understand how your organization can assess risks and opportunities to find the appropriate level of reserve.
- Learn how to build out a reserve policy that documents your review and serves as valuable context for future stakeholders.
$75 for Non-member
Duration: 60 minutes
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Summary
Keeping reserves for a “rainy day” is a good practice for all associations, but how much should your organization set aside? A percentage of annual budget? Three-to-six months? The answer is: it depends. Each association is unique and can experience distinct unexpected circumstances that may affect its long-term financial health.
This session focuses on how to conduct a risk assessment that will assist your association in quantifying financial risks and opportunities. Once completed, this risk assessment aims to assist in finding the appropriate reserve level for your unique organization.
Whether you are in the initial phases of creating your nest egg or re-evaluating longstanding reserve levels, this session is for you.
Presenters
Originally Published
Program Titles and Supporting Materials
Media Files- How Much Should Associations Hold In Reserve? - Video
Downloadable Files- How Much Should Associations Hold In Reserve? - Slide Handout
- Sample Reserve Policies - Handout
- Target Reserve Worksheet Sample - Handout

