It’s a New Year – Don’t go on a Reserve Diet!

I was recently contacted by an association explaining their strategy of not funding their Reserves according to the recommendation in their Reserve Study. They looked at that recommendation, then decided on a smaller contribution rate that they felt was reasonable (about half, they explained).

Why do we Care about Percent Funded?

According to National Reserve Study Standards (see complete standards here), an evaluation of Reserve Fund Strength is one of the three primary results from a Reserve Study (the current component list, the current strength of the Reserve Fund, and the current recommendation for Reserve contributions).