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Welcome to Corporate Alternatives, inc. (CAi), the home of Mission-Based Management publications, training, and consultation for not-for-profit organizations.
"Can Nonprofits Have Too Much Cash?
Can your nonprofit have too much cash in the bank? I wouldn't be surprised if, as you read the question, you came down firmly on one side or the other of this issue. These different points of view are summarized as:
YES! HAVING TOO MUCH CASH IS IMMORAL! WE SHOULD BE SPENDING IT ON MISSION!
NO, ARE YOU KIDDING? HAVING MORE CASH GIVES US BREATHING ROOM AND OPTIONS! I'M SICK OF BEING CASH POOR!
I'm sympathetic to both viewpoints but, of course, the answer is a bit more complex and nuanced, and the real question behind all of this is "How MUCH cash is too much?"
Let's drill down a bit and find out.....
