After the 2009 economic bust, every non-profit should be doing everything it can to enhance revenue streams to build its reserve funds. You never know when such a decline may happen again, and the last thing any association wants to have happen is to be forced to deliver less value and cut programs, because they didn't have enough money in the bank to thrive.
HERE ARE THREE KEYS BEHIND WHY YOU SHOULD HAVE SIGNIFICANT RESERVES:
- Having significant reserves in the bank allows the board of directors and the association, to take on more risk when it comes to new program development, than members could take individually.
- When you have significant reserves in the bank, your association can afford to create new programs without increased cost to the members.
- With significant reserves in the bank, your association can afford to NOT CUT costs during a downturn, just for the sake of cutting costs. They can afford to keep member programs running full steam ahead, and the brand high.
- Having a great understanding of how your member operates, and what their pain points in business are.
- Choosing to develop programs in areas that the association can do more effectively than the member can individually.