Download Our Nonprofit Reserves Policy Template
What is a Nonprofit Reserves Policy?
A nonprofit reserves policy guides your organization in effectively establishing, managing, and using reserve funds to boost its financial stability. Reserve funds serve as essential buffers against unexpected financial downturns, tools for strategic investment, and a foundation for seamless delivery of programs and services.
Your nonprofit reserves policy should be adaptable to align with your organization's dynamic needs and the most recent best practices in financial management. It’s also important to commit to transparency by mandating regular monitoring, comprehensive reporting, and clear communication with stakeholders about the state of your nonprofit’s reserve funds.
Use This Accounting Template To…
- Set and periodically reevaluate a target reserve level for your nonprofit, taking into account its size, mission, goals, financial commitments, and potential risks.
- Break down the composition of your reserve funds into general, specific purpose, and board-designated components to serve distinct financial needs.
- Develop your organization’s approach to financing its reserves with surplus operational funds, unrestricted contributions, designated grants or donations, investment income, or other revenue.
- Lay out potential uses for reserve funds like addressing financial crises, supporting growth initiatives, or managing unforeseen expenses, as well as the approval process for withdrawals and transfers.
Talk to an expert
For bookkeeping and accounting support beyond these templates, get in touch with the Jitasa team.
Request a QuoteAdditional Resources
If you’re interested in investing in a trained accountant to help your nonprofit ensure transparency and accountability in finances, conduct your research. Here are some additional resources you can look into for more guidance:
Working With a Nonprofit Accountant: What to Expect
Working with an accountant can help your organization develop an effective budget. Read more about what an accountant can do for you in this comprehensive article.
What to ExpectBookkeeping and Accounting for Nonprofits
Looking to hire or outsource a finance team? Learn more about both bookkeeping and accounting for nonprofits, specifically about the difference between them.
Jitasa’s ServicesTop 10+ Outsourced Nonprofit Accounting Firms
Working with an accountant specifically dedicated to nonprofits is important for developing a well-informed nonprofit budget. Learn more about Fundly’s top ten picks for outsourced firms.
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