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A reserve fund helps nonprofits handle unexpected expenses or financial shortfalls without disrupting their operations or services.
While both provide financial protection, operating reserves typically cover operating expenses, whereas a reserve fund can be used for various needs, including emergencies or projects.
Yes, reserve funds can be restricted for specific purposes by the board or kept unrestricted for general emergencies.
Aplos allows nonprofits to track, allocate, and report on reserve fund activities, ensuring transparency and compliance with best practices.