Nonprofit GPS

Your Personal Navigation System Through Not-for-Profit Accounting Issues

Keeping Your Cash Safe

Cash and banking are currently ??????????? hot topics that we previously did not worry about too much. Brett’s article is a good overview on the topic. Please contact your banking representative or our office to learn trip about current issues and Business safeguards you can implement to protect your cash.

Kathy Hostetler, CPA

As a non-profit organization, you should have many controls over cash transactions. Cash transactions may be well documented, wholesale mlb jerseys but once the money Warning: wholesale nfl jerseys hits the bank account are you sure it’s School still safe?

Banks can be one of the safest places les to store your cash reserves. Balances earn interests and are easily accessible when wholesale nba jerseys needed. Recently however, banks are prone to failure, and limiting your risk cheap jerseys is important. cheap nba jerseys Understanding the risks associated with different types of bank and investment accounts will protect your non-profit’s cash reserves.

There is a risk of losing some or all of your cash reserves, and depending on your organization you may want to reduce that risk. Although By most accounts are insured to by the federal government, the maximum amount may differ depending on what type of an account/institution the deposit was held in.

The most common bank accounts are checking and savings accounts. The FDIC insures these accounts up to $250,000. Money Markets have a higher level of insurance which typically is cheap nba jerseys $500,000 by SIPC. Investment accounts such as mutual funds and cheap nfl jerseys stocks are typically not insured by the federal government. Stocks and mutual funds Fraud are not terrible choices, as with more risk comes more クリス?ハート 第2回 reward (i.e. deficiência higher interest rates).

Having a good investment plan in place and maintaining your non-profit’s cash balances to have as much cash insured by the federal government will allow you to ride out the Minecraft economic turmoil without stress, and with guaranteed access to your cash.

Brett Hubert


  1. admin says:

    Thanks for the comment as we appreciate hearing your thoughts as well. Although it currently is not a permanent amount, signs are pointing to the temporary increase being extended. Before the election both candidates supported the increase and wanted it continued, but there are other factors as well. There have been five previous limit increases, and the limit has never decreased. The increase in 1980 set the limit at $100,000, and I have a feeling that the limit of $250,000 was not a number pulled out of thin air. If you assume a 3% inflation rate since 1980, the $100,000 would grow to about $243,000 by January 2010. Now the 3% inflation rate is not a proven scientific number, but a good estimate that illustrates the time value of money.

    Making the limit increase permanent will probably not happen quickly, since they have until the end of 2009 to act, and bigger fish to fry in the mean time. You might want to take a lesson from the government on this one, wait it out and see how the financial market is doing in 2009 to reassess your position.

    Brett Hubert

  2. Rachel says:

    $250,000 FDIC insurance is a temporary increase. Do you expect this to be renewed and become the permanent amount?