Cash Reserves

[Jeff Steed]

What is a typical healthy level of cash reserves for a church?

[Jeff Steed]

A good “rule of thumb” seems to be 3-6 months of cash-flow needs from a minimum standpoint.

[Jeff Steed]

The Louisiana Baptist Foundation’s Short Term Fund can be used for various cash reserves and designated accounts. This daily liquidity savings-type account is paying an annualized rate of 1.60% (as of 6/30/2022) compared to the average national daily savings rate for banks being around 0.10% currently. Based on our internal information, we are excited that the rate is the highest being offered to churches in the state to our knowledge. For more information, please email Contact@LBFinfo.org or call 877-523-4636.

[Jeff Steed]

Should a church’s cash reserves and restricted/designated accounts be (1) comingled under one savings account, or (2) segregated?

[Jeff Steed]

RATE INCREASE — The Louisiana Baptist Foundation’s Short Term Fund can be used for various cash reserves and designated accounts. This daily liquidity savings-type account is paying an annualized rate of 3.13% (as of May 2023) compared to the average national daily savings rate for banks being around 0.25% currently. For more information, please email Contact@LBFinfo.org or call 877-523-4636. The Foundation would be very honored to partner in ministry.

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