Increase Your Nonprofit’s Impact Through Effective Cash Management

Nonprofit organizations play a vital role in addressing various societal needs, but to do so effectively, you must manage your finances with care. Effective cash management is a cornerstone of a nonprofit's financial health and can help enhance the impact of every dollar received.

Boost returns on idle cash

Nonprofits often maintain significant cash balances in checking accounts for operational liquidity. However, this could lead to missed opportunities for higher returns. By proactively managing these funds, your nonprofit can invest in low-risk, high-liquidity instruments like Treasury bills or money market funds, which generally offer higher yields compared to traditional savings accounts and CDs.

Develop a cash management policy

A well-defined cash management policy can help your nonprofit set guidelines for managing cash reserves. This policy should outline your organization's investment objectives, risk tolerance, and strategies for increasing returns while maintaining sufficient liquidity for operational needs.

Engage with wealth advisors

Proactive cash management is about more than just finding the best interest rates; it's about aligning financial resources with your nonprofit's mission, maintaining operational liquidity, and strategically growing the organization's reserves.

Consider engaging wealth advisors who understand the distinctive challenges and opportunities of the nonprofit sector. Experienced advisors can provide valuable insights into cash management strategies, investment policy development, and aligning investments with your organization's mission. Focusing on these areas can help your nonprofit make informed decisions to support financial health and further your impact.

How we can help

CLA’s wealth advisors offer specialized cash management services for nonprofits, which currently includes fee waivers and assistance in developing investment policies tailored to your organization's needs. These services can help your nonprofit increase cash reserves without compromising financial stability.