--- title: "A Fresh Look at Reserves" id: "61264" type: "post" slug: "a-fresh-look-at-reserves" published_at: "2024-04-16T21:42:09+00:00" modified_at: "2026-07-11T18:06:39+00:00" url: "https://associationsnow.com/2024/04/16/a-fresh-look-at-reserves/" markdown_url: "https://associationsnow.com/2024/04/16/a-fresh-look-at-reserves.md" excerpt: "Volatile markets can make leaders anxious about their reserves policies. There are some short-term approaches that work, but associations should continue to take the long view." taxonomy_category: - "Business Development" taxonomy_post_tag: - "Associations Now" - "C-suite" taxonomy_content_format: - "Article" taxonomy_role: - "C-Level" - "Executive Team" taxonomy_persona: - "Executive Leadership" --- [Home](https://associationsnow.com/) » [Articles](https://associationsnow.com/format/article/) » A Fresh Look at Reserves Part of the Deep Dive[Building Business Savvy](https://associationsnow.com/deep-dives/building-business-savvy-navigating-a-new-landscape/) Thomas J. Kearney, chief financial officer of the American Frozen Food Institute (AFFI), has made some adjustments to how the association handles its reserves investments. The spike in interest rates since the pandemic, for instance, has prompted it to shift some funds to vehicles with more favorable interest rates. “We’ve moved a significant amount of additional funds to a money market account because they’re making five percent interest,” Kearney says. “Before, we weren’t interested in doing that because they were at zero interest.” Taking advantage of some of the short-term benefits around interest rates is a wise medium-range reserves investment policy, says Dennis Gogarty, president of Raffa Investment Advisers. “Across the board, most associations have taken the opportunity to think about their reserves policies in terms of not just investing for the long term but also more current cash reserves,” he says. “There’s a golden opportunity to take advantage of the current interest-rate environment.” But while the vehicles for investments may change, the overarching philosophy behind reserves at AFFI has stayed the same. Its reserves target is 50 percent of the association’s annual operating budget, and its breakdown of investments are defined by the board’s established risk tolerance. “Our organization is comfortable with a 60-40 split: 60 percent equities, 40 percent fixed income, like CDs, treasury notes, money markets, and so on,” he says. The pandemic, supply-chain crises, and rising inflation have understandably made associations more concerned about whether they’re taking the right approach to reserves policies. But A. Michael Gellman, founder of Fiscal Strategies 4 Nonprofits, says that associations shouldn’t implement radical changes to policies out of fear. “No operating reserve is built to bridge a long-term or permanent change,” he says. “The rules haven’t changed—economic conditions are constantly changing.” [Mark Athitakis](https://associationsnow.com/author/mark-athitakis/) Mark Athitakis, a contributing editor for Associations Now, has written on nonprofits, the arts, and leadership for a variety of publications. He is a coauthor of The Dumbest Moments in Business History and hopes you never qualify for the sequel. [More articles by this author](https://associationsnow.com/author/mark-athitakis/) Tags: [#Associations Now](https://associationsnow.com/tag/associations-now/) [#C-suite](https://associationsnow.com/tag/c-suite/) **Stay Informed** [Subscribe to our free newsletter](https://associationsnow.com/newsletter/) , *Associations Now Daily News*, to find out what’s happening in the association world every business day. ## More in this Deep Dive - [New Paths to Profit](https://associationsnow.com/2024/04/16/new-paths-to-profit/) - [Products and Purpose](https://associationsnow.com/2024/04/16/products-and-purpose/) - [New Rules for Association Sales Staff](https://associationsnow.com/2024/04/16/new-rules-for-association-sales-staff/) - [Business Development for Data-Driven Times](https://associationsnow.com/2024/04/16/business-development-for-data-driven-times/) - [How Larger, Tech-Forward Venues Create Revenue Opportunities for Associations](https://associationsnow.com/2024/04/16/how-larger-tech-forward-venues-create-revenue-opportunities-for-associations/) - [Three Ways to Use Meetings More Strategically](https://associationsnow.com/2024/07/31/three-ways-to-use-meetings-more-strategically/) [View the full Deep Dive →](https://associationsnow.com/deep-dives/building-business-savvy-navigating-a-new-landscape/) ## You Might Like - [VideoSmarter Board Management for Associations: An OnBoard ShowcaseJuly 24, 2026](https://associationsnow.com/2026/07/24/smarter-board-management-for-associations-an-onboard-showcase/) - [Video2026 Summit Awards DinnerOctober 2, 2026](https://associationsnow.com/2026/10/02/2026-summit-awards-dinner/) - [VideoAmerican Geophysical Union: Standing Up for Science: AGU’s Year of Action for Scientists and SocietySeptember 24, 2026](https://associationsnow.com/2026/09/24/american-geophysical-union-standing-up-for-science-agus-year-of-action-for-scientists-and-society/) - [VideoAmerican College of Emergency Physicians: ACEP Geriatric Emergency Department Accreditation ProgramSeptember 24, 2026](https://associationsnow.com/2026/09/24/american-college-of-emergency-physicians-acep-geriatric-emergency-department-accreditation-program/) ## Comments **Comments are for ASAE members.** [Learn more about comments on this site.](https://associationsnow.com/comments/) [Log in](https://associationsnow.com/login?redirect_to=https%3A%2F%2Fassociationsnow.com%2F2024%2F04%2F16%2Fa-fresh-look-at-reserves%2F%23comments) to your member account or [join ASAE](https://my.asaecenter.org/select-a-membership-type/) !