Jump directly to the content

Q&A: Should We Start Digging into Our Reserves?

Churches that deplete their reserves should replenish them over time.

Q&A: Should We Start Digging into Our Reserves?
Image: Westend61 | Getty Images

My church is fortunate enough to have a number of investments in reserve. We really don’t want to deplete those investments, but our current cash flow is down because of the pandemic and we’re wondering if now would be the time to convert some of those investments into cash. Should we start digging into our reserves? Is this a good or bad idea?

Like you, churches and other organizations with liquid assets will sometimes put additional assets into marketable security holdings with the hope of generating investment income while they’re being held as reserves.

The assumption is that you would convert those investments to cash when they are needed. Normally, we don’t assume that everyone would want to liquidate their investments and convert them to cash at the same time, but that is, to a large extent, what happened early in this pandemic. That is one of the reasons the ...

Join now to access this member-only content

Become a Member

Already a member? for full access.

Related Topics:
Posted:
  • June 1, 2020

Related ResourcesVisit Store

2020 Financial Bundle
2020 Financial Bundle
Set the pace for your church's efficiency by solidifying your financial plan today. Effectively allocate church funds and set budgets.
Church Finance
Church Finance
Learn about budgeting, financial reporting, tax compliance, insurance coverage, and more.
Planning a Church Building Project
Planning a Church Building Project
Learn about zoning laws, property sales, church construction, financing, and more.
Church Fundraising Campaigns
Church Fundraising Campaigns
Discover tips on raising and borrowing money.