Your local United Way may serve as a useful model that your county
government would respect. Our local United Way benchmarks it its funding
review cash reserves at 3 months worth of operating costs for
not-for-profits in general. This makes sense to me - it's a reasonable
safety net, museums included.
  -----Original Message-----
  From: Museum discussion list [mailto:[log in to unmask]]On
Behalf Of Lori Tomlinson
  Sent: Tuesday, April 17, 2001 6:23 PM
  To: [log in to unmask]
  Subject: Cash Reserves


  Hi listers!

  We are a small history museum in Florida.  Annually, we apply for grant
funds
  from our County Government.  This year, they have questioned the amount of
  cash shown on our Balance Sheet.  Our board and staff feel strongly that
  having a certain amount of cash reserves is not only wise, but necessary,
in
  the event of major (or minor) emergencies (i.e. our annual major
fundraiser,
  and outdoor historical festival, is rained out; natural disaster strikes;
  etc.).

  Is there a standard in the museum industry for how much cash should
ideally
  be held in reserve?   Perhaps a certain percentage of the institution's
  annual operating budget?  I am curious as to how much other museums hold
in
  reserve (where possible).  Please reply to the e-mail address given below.

  Thanks in advance!

  Lori Tomlinson
  Executive Director
  Florida Adventure Museum
  Punta Gorda, Florida
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