Is this in an attempt to gauge an organization’s strength and ability to operate for an extended period before being reimbursed? Or are you asking organizations to expend all their reserves before utilizing Covid-ESG funds?
The COVID ESG funds are intended to serve as emergency funds for organizations that have been significantly impacted by the COVID 19 crisis, either in terms of demand for their services, fundraising or both. To this end, the City is attempting to understand the relative need for City funding. It is important that organizations be able to maintain at least a six-month reserve in order to provide working capital and to serve as a hedge against unexpected funding changes. Larger liquid reserves (beyond six months) suggest that the organization may have the ability to self-fund some of the activities for which City funds are being requested, while still maintaining a healthy reserve balance.
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