Jump directly to the content
Maintaining Safe Levels of Cash Reserves
How much is enough?

In these unpredictable economic times, what is the recommended amount of liquid reserves a church should keep on hand (% of budget)?

Churches are looking at and using their reserves more now than they have in the past. In the book, "Essential Guide to Church Finance," we recommend a reserve balance of three months. This is to help in times such as these when you may be seeing a larger need for expenses (benevolence, etc) and a smaller contribution base than in prior years. Each church governing board should determine a reserve level and management should work on a plan to reach that amount. The reserve requirement should be reviewed periodically to make sure it is adequate for the ever-changing needs of the church.

It is typical for a church to only have 3-4 weeks of liquid reserves. Keep in mind that things can happen to cancel a weekend of services such as a tornado, a blizzard, or some other event. When that happens, you need to be able to carry on without concerns.

Log In For Full Access

Interested in becoming a member? Learn more.

August 26, 2009
View All
from our store
Understanding Labor Laws

Understanding Labor Laws

Best practices for complying with regulations that pertain to hiring, firing, paying, disciplining, and supervising ministry employees.



Experience a whole new way to set compensation. Eliminate the guesswork – get access to detailed compensation reports in just minutes.