Lei Advisory helps boards set a reserve policy, build reserves toward it, and oversee invested funds alongside the organization's investment advisors.
How much, for what purpose, and when it can be used, written down and approved by the board.
A realistic plan to build reserves from operating results and unrestricted gifts.
An investment policy, regular review with outside managers, and reporting the finance or investment committee can follow.
Six months of operating expenses is a common target. Getting there takes a plan.
Reserves and investments work best when they're part of the budget, not an afterthought. They belong in the multi-year plan and in every board package.
At a national nonprofit, Frank established the organization's cash reserves, which more than doubled to nearly six months of operating expenses. As CFO of two other organizations, he oversaw their investment portfolios with outside wealth managers.
Lei Advisory works with a limited number of organizations at a time. If disciplined reporting and experienced oversight would help your team, reach out. The first conversation is a straightforward consultation.