When and How to Invest Your Reserves

Are you one of the few churches or nonprofit organizations that has developed a healthy reserve? Are you wondering what it means to be a good steward of that resource? You may be considering investing a portion of your reserve for long term growth. Auxilio has compiled some key questions and thoughts to help shape your decision making.

A good rule of thumb is to keep six months (or the period of time that fits your organization) of your budgeted operating costs in a bank account or other liquid asset. After that, you’ll want to consider your plans and what opportunities may come in the short term. Are there investments or purchases you want to make in the next 1-5 years for which you’ll need to access your reserves? A good example of why you might want to access your reserve funds is for the purchase of an office or a building, building renovations or the addition of a strategic staff role to help you grow.

A good financial advisor can help you plan for those opportunities and help structure your investment allocations to appropriately balance liquidity and risk in a way that fits your organization's unique needs. Auxilio has been talking with several investment groups and would be glad to put you in touch with them should you want to consider the options that are available and discuss what would be the best fit for your church or nonprofit. 

If your church or organization is interested in purchasing a building in the next 1-2 years, it’s a good idea to identify financial institutions that your organization might work with and begin assembling the appropriate documentation. Start with your current bank for a mortgage on a commercial property and talk with your Partner Strategist to help prepare your financial reports.

Contact us at hello@auxilio.partners or talk to your Partner Strategist to learn more.