Nonprofit Reserve Funds are here

Local nonprofits can now establish reserve funds at the Quad Cities Community Foundation. Unlike general operating funds that are drawn on regularly for everyday expenses, Nonprofit Reserve Funds are set aside for the extraordinary opportunities and challenges that cross an organization’s path.

“Nonprofits need staying power to effectively serve our community,” said Sue Hafkemeyer, president and CEO. “A Nonprofit Reserve Fund can provide the financial stability and flexibility they need to continue driving their mission forward.”

What is a Nonprofit Reserve Fund?

A Nonprofit Reserve Fund is non-endowed organization fund established by a nonprofit organization for the housing of medium- or long-term operational reserve needs. In the Community Foundation’s professionally managed investment pools, a nonprofit reserve fund has opportunity for growth in the market while remaining fully accessible to the nonprofit when reserve assets are needed.

By establishing a Nonprofit Reserve Fund at the Community Foundation, organizations can benefit from the expertise of the Community Foundation’s finance team and Investment Committee, a group of highly skilled local professionals that oversees the investment policy and strategy. Housed in pooled investments at the Community Foundation, reserve funds have the opportunity to grow in the market while remaining fully accessible when needed. Assets can be granted back to the nonprofit in the event of unexpected events and large, unbudgeted expenses.  

“We strive to be a trusted resource for our community’s nonprofits—we want to be a partner in how they thrive,” said Hafkemeyer. “We hope this new offering will help them build the financial confidence they deserve.” 

For newer or grassroots organizations without permanent endowment funds, a Nonprofit Reserve Fund can provide an invaluable financial buffer as they focus on establishing their mission, leadership structure, programs and services, staffing model, and a reliable source of operating revenue. For nonprofits that already have an endowment fund at the Community Foundation, hosting their reserve funds in the same place can streamline financial management.

The Community Foundation provides a comprehensive toolkit of information to help organizations consider the accounting implications of establishing a Nonprofit Reserve Fund, determine the right amount to allocate to their fund, and develop a written policy. It also provides policy samples, budgeting sheets, and other helpful information specific to organizational reserves.

To learn more about opening a Nonprofit Reserve Fund, contact Anne Calder at AnneCalder@QCCommunityFoundation.org or call (563) 326-2840.