Booster Club Reserve Policy: How Much to Hold and What Recognition Costs to Protect
A booster club reserve policy defines how much unrestricted cash your organization holds as a financial cushion and which specific obligations — sponsor deliverables, awards, banners, and long-term recognition display costs — that cushion must be sized to protect. Most booster clubs set reserves informally, if at all. The result is that recognition commitments made to sponsors and donors become exposed whenever a revenue shortfall, a leadership transition, or an unexpected expense interrupts the normal operating cycle.
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