Put your cash reserves to work.
Funds sitting in a savings account or money market are actively losing value due to inflation. Stewarding nonprofit reserves requires targeting the highest return for the least amount of risk with the goals of capital preservation, liquidity, and strategic growth.
What is a T-Bill?
Short term Treasury Bills are Securities issued by the U.S. Department of Treasury and currently an ideal high yield option for nonprofit reserves. They have high liquidity. They aren't locked up for years like CDs, and they currently bring greater returns than savings and money markets. Treasury Bills are also backed by the full faith and credit of the U.S. government and if held to maturity, rates are guaranteed.*
Why US Treasury Bills?
US Treasury bills are some of the lowest risk investments available today:
Backed by the full faith and credit of the U.S. government.
Funds can be withdrawn in as little as 3 business days.
Treasury Bills can pay up to 4.7%* when held to maturity.
Is the rate guaranteed?
U.S. Treasury Bill rates change daily. Every 91 days, we will re-purchase treasury bills for you at the current rate. The current sentiment is that rates will stay the same or increase for the remainder of 2023.
What if I need to withdraw my funds?
We believe you should be able to access your reserve funds whenever needed. A linked bank account allows you to easily ACH or wire transfer money in and out of highly liquid assets within 2-3 business days, fee free.
What about the US debt limit?
There is a lot going on politically at the moment. However throughout modern history, the U.S. has never defaulted on its debt. While if the US were to default, treasury bills would be effected, most investors and ratings agencies still rate the US with an AAA (or equivalent) rating.
Nonprofit leaders need to make sure you are stewarding your cash reserves. As with all nonprofit investments, the goal should be to create short and long term strategies that seek organizational sustainability. These strategies change as the organization grows and markets shift, but the goals should be consistent and built around capital preservation, time horizons, financial stewardship, and moving your mission forward.
We are here to partner and provide guidance as needed!
Treasury Portfolio Disclosures: Forecasts or projections of investment outcomes are estimates only and as such they are imprecise and hypothetical in nature, do not reflect actual investment results, and are not guarantees of future investment results. Investing involves risk, including the possible loss of principal, and there is no assurance that the investment will provide positive performance over any period of time. Infinite Giving accounts are not bank guaranteed or FDIC insured. 4.70% is sourced from treasury.gov January 2023 52 week coupon equivalent rate yield. Projected and/or hypothetical performance is intended to show only an expected range of possible investment outcomes based on historical average returns and standard deviation of each investment type, but does not take into consideration the effect of taxes, changing risk profiles, or future investment decisions. Projected and/or hypothetical performance does not represent actual client accounts or actual trades and may not reflect the effect of material economic and market factors.