Reserve Fund

(This is intended to be an informative page about the Reserve Fund. None of this has been voted on, unless explicitly stated otherwise. - parker, treasurer, Jan 2012.)

What is the Reserve Fund?

The Reserve Fund is the money we have left over after all of our budgeted expenses are paid for.

Here are some definitions of the term "reserve fund" I found online:

Sasona has a Reserve Fund included in the budget, in the line "Income Minus Total Expenses." This can be used to determine the Debt Service Coverage Ratio (See: TheBudget).

Where does the Reserve Fund come from?

Here are some areas the Reserve Fund might come from:

What do we spend the Reserve Fund on?

In the first 6 or 7 years of Sasona's existence, we didn't talk much about the Reserve Fund because we were living hand to mouth -- we didn't have any extra money left over.

After we started solving our member debt problems and passed viable budgets for several years, our reserve fund built up.

Here are some things we have spent the Reserve Fund on:

If the IRS had not dropped its fines against us for late filing, we would have used our Reserve Fund to pay for them.

How do you calculate the Reserve Fund?

It is most meaningful to calculate the Reserve Fund at the end of the fiscal year, after all the yearly expenses have been paid.

Here is a spreadsheet listing a Reserve Fund calculation in the middle of the year: Reserve Fund calculation spreadsheet, 1-31-12

To calculate the Reserve Fund, every single credit and debit for the organization must be accounted for.

SasonaWiki: ReserveFund (last edited 2012-02-01 01:50:46 by Parker)