Case Study B:
Managing Operating Resertes
IMPORTANT INFORMATION: The case study presented is hypothetical and for illustrative purposes only. It does not represent an actual client, and no representation is made that any investment strategy will achieve similar results. Investment outcomes may vary based on individual circumstances, objectives, and market conditions. All investments involve risk, including the possible loss of principal. Past performance is not indicative of future results.
Organization
A nonprofit maintaining significant operating reserves used to fund programs and near-term organizational needs.
Challenge
The organization maintained most reserves in bank deposits and certificates of deposit due to a strong preference for capital preservation. While this approach protected principal, it limited income generation on assets that were not immediately needed for operations
Approach
Gaard worked with leadership and the board to evaluate expected cash flows and determine the appropriate level of liquid reserves required for operations. Based on this analysis, Gaard implemented a conservative reserve management strategy focused on high-quality short- and intermediate-term fixed income investments
Assets were structured using a tiered liquidity framework designed to maintain ready access to funds while improving expected yield.
Outcome
The organization now manages its reserves through a structured liquidity portfolio designed to preserve capital while improving expected income relative to traditional cash holdings. The approach provides clear reporting and oversight, helping leadership demonstrate responsible stewardship of organizational and donor-supported funds