What is

Reserves

Reserves are funds set aside by a nonprofit or social enterprise to provide financial stability, cover unexpected expenses, or support future growth. They act as a financial cushion to ensure operations can continue during funding gaps, economic downturns, or emergencies.

Real World Examples

  • A nonprofit maintains six months of operating expenses in reserves to sustain programs during funding delays.
  • A social enterprise sets aside a portion of its annual revenue to invest in new product development without relying on external funding.

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