But if an organisation has a policy of holding 3-5 years worth of reserves, this implies that for every dollar donated which is used on its activities in a given year, another 3-5 dollars worth of donations simply ends up sitting in a bank.
An organization could have a lot of reserves but still have revenue and program expenses roughly equal, no?
An organization could have a lot of reserves but still have revenue and program expenses roughly equal, no?
Ah yeah—in that case I think my point would only apply if the org was increasing its overall revenue and expenditure.