[Foundation-l] Building up the reserves
william at scissor.com
Thu Mar 4 17:48:57 UTC 2010
On 03/03/2010 06:41 PM, Veronique Kessler wrote:
> 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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