Practice Element 6A4: Building and Maintaining Operating Reserves
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About This Practice
This guidance covers Practice Element 6A4:
⬤ Build and maintain sufficient operating reserves to sustain operations
⬤ Accreditation indicator element
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Learn Practice Element 6A4: Building and Maintaining Operating Reserves
Land Trust Standards and Practices, Practice 6A. Fiscal Health, includes five elements. This module addresses Practice 6A4: Build and maintain sufficient operating reserves to sustain operations.
How Much Do Organizations Need to Keep in Operating Reserves?
One size does not fit all when it comes to operating reserves. Despite the importance of the issue, there is no simple formula or benchmark. To answer the question of “how much,” an organization must examine revenue streams and spending levels.
Practice Element 6A5: Funding for Stewardship and Defense
This guidance covers Practice Element 6A5: Build and maintain dedicated or restricted funds sufficient to cover the long term costs of stewarding and defending the land trust’s land and conservation easements.
Building and Managing Operating Reserves
Operating reserves ensure that your land trust can honor its commitment to steward land in perpetuity, and can allow your land trust to act quickly to seize opportunities.
Practice Element 6A2: Deficit Spending
This guidance covers Practice Element 6A2: Develop and implement a strategy to address any deficit-spending trends.
Practice 6A: Fiscal Health
This guidance covers Practice 6A: Fiscal Health.
Practice Element 6A1: Annual Budget
This guidance covers Practice Element 6A1: Develop an annual budget that reflects the land trust’s annual programs and activities.
Practice Element 3A2: Board Financial Oversight
This guidance covers Practice Element 3A2: Board Financial Oversight.
Sample for Practice 6A: Criteria for Nonprofits' Operating
This is criteria for the operating of nonprofits from Thomas J. Raffa at Marcum LLP.