Not-for-Profit Roundtable: How to Put Excess Cash to Work For Your Organization in 2021

There is a cash conundrum occurring right now. After a volatile and uncertain 2020, not-for-profits and investors alike are finding that they have accumulated higher than normal levels of cash. This has led to total cash accumulations that are higher than at any other point in history – over $4.4 trillion in money markets and $11 trillion in bank deposits.

How did we find ourselves sitting on top of such a pile of cash? Many organizations took steps to de-risk in March 2020, passively accumulated cash over time, or came into new sources of funding due to pandemic-related challenges. All of these actions have resulted in a great deal of cash sitting on the sidelines.

Yet many are leery to get into a market, asking themselves whether it is a good idea to invest when the market is at all-time highs or amidst such low interest rates. It can be difficult to understand where and how to invest excess cash right now, which can paralyze efforts to maximize your resources.

Kreischer Miller welcomed Evan Linhardt, leader of the mid-Atlantic’s non-profit advisory division for Bernstein Private Wealth, and Greg Young, Senior Investment Strategist at Bernstein Private Wealth, for a roundtable discussion about strategies to solve this cash conundrum. This event was an open discussion where questions and input from attendees were encouraged.