How to Calculate “Months of Unrestricted Cash” for your Nonprofit

Do you know how to calculate the “Months of Unrestricted Cash” for your non-profit organization? Essentially, the Months of Unrestricted Cash refers to the number of months of operating expenses that can be paid with the cash your nonprofit has on hand or in the bank. In personal finance, it’s important to have a 6 months reserve fund for a rainy day and the same concept carries over to nonprofits and businesses as well. Watch the video and Ben Anders from Innovative Solutions CPAs & Advisors will show you how you can calculate this key performance metric for your non-profit organization.