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Association TRENDS Workshop: Sizing & Investing Nonprofit Reserves 2022

Most nonprofit organizations and associations should have an “emergency fund” of operating reserves to cover a potential shortfall of revenues versus expenses. Some organizations may also need to reserve for specific capital projects, programs, or extraordinary spending needs. However, cash holdings are especially vulnerable to today’s high levels of inflation. In this workshop, Clare and Chris will provide a thoughtful approach to answering questions such as:

  • How much should we hold in operating reserves?
  • Should we hold more or less in reserves than other organizations?
  • How should we invest our reserves?
In this three-hour TRENDS workshop, Clare Golla, CFP and Chris Clarkson, CFA from Bernstein’s Wealth Strategies Group present a thoughtful approach nonprofit executives can use to right-size reserve funds and adjust cash holdings and investments amid today’s high levels of inflation.

Agenda -

SESSION 1: Right-sizing reserves in an inflationary environment
You’ll learn how to assess operating expenses and funds that may be required for specific capital projects, programs or extraordinary spending needs. You’ll benefit from a clear approach you can use to set aside the right reserves to cover a potential shortfall, including:
  • A proven framework for conducting a reserve analysis
  • The many factors that may affect your risks
SESSION 2: Different investment strategies for different types of reserve funds
Clare and Chris will walk through examples of how a nonprofit’s financial and fundraising situation can require different pools of reserve funds and how to match the right strategy to each, including how to:
  • Understand why key risk factors can impact an organization’s need for holding reserves.
  • How to invest short-term and intermediate-term reserves that have different time horizons than cash equivalents or a long-term endowment.
This event was recorded on August 9th, 2022.

Meet Your Trainers -

CLARE GOLLA, CFP As National Managing Director of Bernstein’s Foundation and Institutional Advisory team, Clare Golla and her team drive business strategy, thought leadership, and implementation of comprehensive investment management for foundations and other tax-exempt institutions. As a leader at the firm, Clare serves as a member of AB’s global Corporate Responsibility Advisory Council, and as chair of the firm’s Central Region Diversity Champions Council. A frequent public speaker and writer, she also hosts “Inspired Investing,” a podcast dedicated to nonprofit and philanthropic financial health and best practices. Clare joined Bernstein in 2010 as a financial advisor, she was promoted to Principal in 2016, Managing Director in 2018, and Senior Vice President in 2019. Prior to joining the firm, Clare led the institutional practice for a leading community development financial institution. She earned her BA, magna cum laude, from Harvard University, her MA from The University of Chicago, and she is a CERTIFIED FINANCIAL PLANNER™ professional. Clare has served on numerous boards and finance committees and currently acts as Treasurer for the Albert Pick, Jr. Fund. She lives with her family in Oak Park, Illinois.

CHRISTOPHER J. CLARKSON, CFA Mr. Clarkson is a Senior Vice President and a Director in Bernstein’s Wealth Strategies Group. As a member of Bernstein’s Foundation and Institutional Advisory Services team, he works with donors and nonprofits nationwide to ensure their finances are best positioned to fulfill their mission. He has expertise in a variety of complex investment planning issues, including charitable giving, selling a business, retirement planning, multigenerational wealth transfer, and diversification of concentrated stock and option portfolios. Mr. Clarkson is a frequent lecturer to groups of tax and legal professionals and charitable organizations throughout the western United States. He has given educational seminars for the Los Angeles Council of Charitable Gift Planners – Western Regional Planned Giving Conference, USC Tax Institute, Advisors in Philanthropy, Colorado Society of CPAs, Estate Planning Council of San Diego, Hawaii Tax Institute, and Greater Washington Society of CPAs. Mr. Clarkson joined the firm in 1995 and has been a member of the Wealth Strategies Group since 1998. He earned a BA with high honors in business/economics from the University of California, Santa Barbara, and is a Chartered Financial Analyst charter holder.