Why does Smile Train have such a large cash reserve?
For our most recent Fiscal Year, our combined operating expenses were $133,716,600. Our total net assets (reserves) were $134,601,638. Of that, $128,390,810 was in interest bearing investments. The reserve is in place so that if we are unable to maintain our fundraising efforts at present levels, we would still be able to fund our programs for one year. When our partners in the field sign-up each year they assume funding for the entire year. In essence, the Smile Train model is dependent on the steady flow of funds to our 1,100 partners. We run Smile Train like a business and, like any business, it is recommended that you have a “reserve” for when times get tough. Our board closely monitors our cash reserve and we make certain to never “stock pile” your generous donations. As a matter of fact, in order to qualify for the BBB Wise Giving Alliance a charity may NOT have more than three years of operating expenses in reserve. Smile Train has enough in reserve to keep our programs running
