Operational reserves are funds an organization accumulates over the years by operating with a surplus. Consciously building a reserves fund allows the organization to:
Operational reserves demonstrate wise risk management and smart financial planning.
In light of recent U.S. government actions, nonprofit organizations are facing significant challenges due to a temporary halt on federal financial assistance, including grants and loans. This pause mandates federal agencies to review existing grants and compile lists of recipients that may no longer be eligible under recent executive orders. The duration of this suspension is uncertain, and nonprofits must proactively navigate this evolving landscape to ensure continuity in their operations and services.
More about the GWSCPA Nonprofit Financial Accountability Task Force.
