Nonprofits inherently work to make a significant impact with limited resources. Consequently, financial stability is a top priority for these organizations, as it enables them to continue their operations even amid economic uncertainties.
Your organization’s approach to achieving stability might include diversifying your fundraising tactics and leveraging donor software like Salesforce. However, these strategies will be ineffective unless you establish internal policies that guide your organization’s financial management.
One such guideline is your operating reserves policy, which outlines how your organization will establish and utilize its savings. This guide will discuss four considerations to help your nonprofit formulate an effective policy.