–The amount will be considered reasonable based on the needs of the NPO, including such things as future anticipated expenditures and the amount and pattern of receipts from various sources (e.g., fund raising, membership fees, training course fees)
–In some circumstances, an accumulation
equal to one year's reasonably
anticipated expenditures on its
non-profit activities may not be
considered excessive, while a reserve equal to expenditures over a much shorter period would be considered more than adequate in other situations