- Professional Advisors
In addition to your permanent endowment fund which earnings provides for your long-term financial sustainability, it is critical for agencies to first consider building a liquid designated “rainy day” reserve fund which provides working capital to your organization as a hedge when short-term unexpected challenges occur, e.g. declines in campaign or event revenues as a result of economic or weather-related events. A reserve fund may also be useful when planning for capital improvements.
What is a Non-Endowed Fund?
Agencies can receive an investment return on their capital and have the option for liquidation and distribution at any time and for any amount, including 100% of the fund balance.
Benefits of a Non-Endowed Fund:
A non-endowed fund is often used to maintain and grow sufficient capital reserves in the event of unexpected financial difficulties. A reserve fund may also be useful when planning for capital improvements.
How it Works: