Spending Limits

Adam Eggert

Does anyone have any guidelines on amounts to be kept in each fund ever year? Does anyone make sure a minimum amount or a percentage stays in each fund each year? Thanks and any information would be helpful.

Thanks,

Adam Eggert

Horizon Health Foundation

Christine Cooke 2

@Adam Eggert
wouldn't that be a decision for the finance/business office to make? Unless I am misunderstanding your question.

Faith Murray

@Adam Eggert I think this is totally dependent on your structure and whether you're talking about Finance Office project funds or fundraising revenue/expense accounts. If the latter –

At our org, all the funds we raise in Development go into our nonprofit's coffers. Then, every year, our Development expense budget comes out of the general coffers. That means it is up to our Finance Office – not us in Development – how much buffer is reserved in those operating funds. (Though I will say that generally, our Business Manager likes to know we have next year's budget supplied before he allocates for other special needs.)

Not all orgs operate this way, however. At a fellow religious college I know, their Development department pays for all their own expenses out of their fundraising revenue before passing the surplus along for operational accounts. They enjoy greater autonomy in department budgeting, but I imagine it would be wise to keep some spare cash for the next quarter's mailings and salaries, so you can pay your bills before the cash starts rolling back in.