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The Importance of Operating Reserves

“What is an operating reserve, and why does every nonprofit need to address this issue?” In this issue of Accounting and Audit Advisor, Gelman, Roseberg & Freedman’s Amy Boland provides advice on the importance of nonprofit operating reserves as well as how nonprofit boards can determine the most appropriate size of reserves for their organizations.

Included in this article is a comparison between operating reserves and other unrestricted funds, the factors nonprofit boards and executives should consider when making decisions about their operating reserves, and the effects operating reserve levels can have on fundraising capabilities.


We were looking for a new employee benefit plan auditor and our CFO, John Ring, selected Jackie Cardello with Gelman, Rosenberg & Freedman, and we are very happy with the choice.

Arlene Campbell |  Assistant Controller
Paralyzed Veterans of America