Operating Reserve Policy Template

Plan Ahead. Stay Steady. Lead with Confidence.

An operating reserve is your nonprofit’s financial safety net. It helps you manage everyday cash flow and stay resilient when the unexpected happens. This template gives you a clear, customizable policy to help build that stability—so you can keep your mission moving, no matter what.

Why It Matters:

• Supports day-to-day operations – Helps you manage cash flow with ease

• Prepares you for the unexpected – A buffer for slow funding cycles or surprise expenses

• Builds long-term sustainability – Shows funders and stakeholders you’re planning for the future

This sample policy is a great starting point, and it’s always a good idea to consult your legal advisor or auditor to tailor it to your organization’s structure and financial goals.

Because strong missions need strong foundations—and a reserve to keep you grounded.