[Foundation-l] Building up the reserves

William Pietri william at scissor.com
Thu Mar 4 17:48:57 UTC 2010

On 03/03/2010 06:41 PM, Veronique Kessler wrote:
> Hi,
> The question of what is the right reserve amount is a common one.  I've
> hear of ranges from 0 to 3 months to 3 years.  I agree that one year is
> a good measure and that could be increased or decreased depending on a
> variety of circumstances both internal and external. [...]

Thanks for the reply, Veronique.

Do you have an opinion on building up an endowment to cover core 
operating costs? I know zero about non-profit finance, but it would be 
comforting to me to know that, even in worst-case scenarios, the servers 
would stay up and bits would continue to flow.

Don't get me wrong: a full year of reserve seems great to me. But in my 
head Wikipedia is for the ages, and a financial model that matches that 
-- at least for the very basics -- would be reassuring.


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