The Nonprofit Administration Dilemma: How Much Should You Spend on Fundraising? 2025
It is calculated by dividing unrestricted net assets by average monthly expenses. This ratio indicates how many months an organization can continue operations without additional revenue. A commonly recommended guideline is maintaining reserves covering three to six months of operating expenses, as suggested by the Nonprofit Operating Reserves Initiative Workgroup. This buffer allows organizations to … Read more The Nonprofit Administration Dilemma: How Much Should You Spend on Fundraising? 2025