ABSTRACT
This chapter briefly reviews the academic literature in the business-sector research, as it is more advanced and yields actionable findings. I then profile survey and field research evidence available on the espoused primary financial objective pursued by nonprofit organizations and profile the literature on nonprofit cash and treasury management. The chapter provides a new look at the constructs that enable the nonprofit to achieve that primary financial objective. Building on this book’s previous chapter, I suggest ways in which nonprofit financial managers may measure and manage liquidity, including liquid cash reserves and liquid operating reserves, to better achieve their missions. Managers successfully navigating this treasury management challenge are then equipped with a potent toolkit for addressing financial health and sustainability. The chapter closes with a call for further research.
