It is good practice to maintain a cash reserve. Like many things, this should be driven by balance. As a 501 (c)(3) organization we are required to use our resources for our goals. We need both a cash reserve and to put our money to work toward our goals.
Here is a quick guide to help you determine what you should hold as a cash reserve. If your cash position is less than 0.5 times your annual budget, you are considered to be operating at a risk. Healthy cash reserves are between 0.5 and 2.0 times your annual budget. Keep your cash position to no more than 2 times your annual budget.
If you find you have excess cash that you need to put to work, please check out the Cash Reserve and Fund Management presentation in the training section of the Finance Committee webpage. Finance Committee – Society of Women Engineers (swe.org)
The Society of Women Engineers (SWE) Finance Committee is a standing committee dedicated to fiscal interests within SWE. If SWE finance questions arise, please email the SWE Finance Committee at financecommittee@swe.org or visit us during our office hours. Office hours are generally held every month and at Annual Conference. The Executive Council does not have to go it alone with our SWE annual fiscal process.
