Video Podcast: What Nonprofits Should Know about Spending Operating Reserves

Ben and Mike discuss why the spending side of operating reserves is often overlooked, the benefits of adding spending provisions to an operative reserve policy, the key elements to include in these spending provisions, how the smart use of operating reserves can be a point of pride for a nonprofit organization, and more.

CHAPTERS:

00:00 - Intro

01:47 - Balancing short-term and long-term purposes of operating reserves

02:36 - The short-term purpose of operating reserves

03:58 - The long-term purpose of operating reserves

05:46 - Why nonprofits tend to overlook the spending side of operating reserves

07:57 - Remembering that spending is part of why to have operating reserves

11:43 - What happens when there are no spending provisions in your operating reserve policy

13:04 - Elements to include in spending provisions and 3 spending buckets

23:13 - Prioritizing within the 3 spending buckets

25:06 - Warnings and caveats to keep in mind about spending operating reserves

26:48 - How spending operating reserves can be positive

FURTHER READING:

Nonprofit Operating Reserves Series

VIDEO PODCAST: Why Nonprofits Should Have Operating Reserves