02/16/2017

4 Components of a Good Reserves Policy

Association finance isn't all the different from personal finance

Along with protecting the association from financial downturns and funding new initiatives, creating—and adhering to—a detailed reserves policy will help you manage board and staff expectations.

Finances are one of the top sources of stress in a marriage, according to the American Psychological Association’s Stress in America Survey. It’s easy to see why. Picture this: One spouse is a saver, dreaming of the perfect house or a blissful retirement, while the other is a spender, dipping into the savings account for that next-generation phone or car. With such opposing mindsets, it’s no wonder stress and conflict arise.

Association finance isn’t all that different from personal finance. On one hand, you have the finance department, which is in the weeds of budgeting, forecasting, and accounting for every cent. And then you have the rest of the staff and board, which are likely filled with great ideas to spend those dollars on behalf of its members. It’s another situation ripe for disagreement.

Please click here to read the complete article from Associations Now.