Forty percent have less than six months' reserves; thirteen percent have none.
The financial picture's worse among small nonprofits (those with annual revenue under $25 million).
Loss of revenue can cripple a nonprofit. That's why BDO recommends keeping liquid reserves for at least six months.
Executive directors and board members in a bind over money have a clear choice: they can hide their heads in the sand, or take action now to bolster income and reserves.
The economy's rolling, but the joyride can't last forever.
