💡Nonprofit leaders, let’s talk cash management—because it’s way more than just balancing a checkbook! 🏦
Did you know that if your organization has more than $250,000 in a bank account, that money isn’t fully protected by FDIC insurance? 😱 After the 2023 regional banking crisis, this is something every nonprofit leader should keep on their radar.
But here’s the good news: there are three simple, proven strategies to protect your cash and even earn better returns on your reserves! 💸
1️⃣ The 3-Month Operating Cash Principle: Keep only 3 months’ worth of expenses in your checking account. It lowers risk and frees up funds for growth.
2️⃣ Move Excess Funds to a Brokerage Account: These accounts can offer much more protection (up to $600 million!) than the FDIC limit. 🛡️
3️⃣ Put Your Money to Work: Treasury management accounts and conservative investments can help you earn returns on money that’s just sitting there. 📊
Nonprofits have boosted their missions with hundreds of thousands in additional funds just by using these strategies. Ready to protect and optimize your organization’s cash? Let’s connect! 🤝
Read more here: https://lnkd.in/eChP9zNG#NonprofitFinance#CashManagement#FinancialStrategy#NonprofitLeaders#InstitutionalInvesting#NonproftCashManangement#InvestmentManagementAndrew Tudor, CFP®, CAP
As a nonprofit leader, managing your organization's cash is more than just balancing a checkbook. It's about keeping funds safe, especially when you're balances exceed the FDIC insurance limits. Hi, I'm Andrew Tudor, institutional investment advisor at Zenith Wealth Partners and today I want to talk about a critical issue that often goes unnoticed. Did you know that if your nonprofit has more than $250,000 in a bank account that those excess funds aren't protected by FDIC insurance? After the regional banking crisis in 2023, this is a risk that all nonprofit. You should be aware, but there's good news. There are three proven strategies that can help protect your organization's cash reserves while also potentially generating a better return. First, implement the three month operating cash principle. Keep only what you need for the next three months in the checking account. This reduces risk and frees up excess cash for growth. Secondly, consider moving excess funds to a brokerage account. These accounts offer protection up to $600 million through SIPC and additional insurance, far more than the FDIC's $250,000. Finally. Put your excess cash to work, Be treasury management accounts, money markets, and other conservative investments. You could earn meaningful return on funds that would otherwise be sitting idle. I've seen nonprofits generate hundreds of thousands of dollars in additional funding for their mission just by using these strategies. If you'd like to learn more about protecting and optimizing your organization's cash reserves, reach out to our team at Zenith and let's connect.
