ADM Helps Nonprofits Maximize Cash Reserves Amid Budget Cuts

Recent government spending cuts have begun to trickle down to grant-funded nonprofits. One such organization is North East Trees in Los Angeles, which recently shared that the loss of a $1.5 million federal grant is expected to slash their 2026 budget by a quarter.

The potential loss of grant funding has left many nonprofit leaders searching for ways to safeguard their current assets and grow their cash reserves. Fortunately for these organizations, ADM has comprehensive solutions that help nonprofits protect and grow their cash, so they can continue to support their missions.

Modern Cash Solutions to Protect and Grow Cash Reserves

In an era of shrinking federal funding, it is even more vital for nonprofits to make the most of their existing assets. Our modern cash solutions provide access to nationally competitive interest rates that grow reserve funds safely – without market fluctuations or the risk of losses due to bank failure.

Nonprofits Receive Nationally Competitive Returns for Cash Reserves

Our solutions work by spreading cash across a nationwide network of financial institutions that compete for business deposits. Competition between our bank partners allows clients to receive nationally competitive returns for their cash.

These innovative cash management tools have generated millions in additional income for our clients. For example, our clients earned $160,000 in interest on average for a $1 million account balance that was deposited in 2017 – compared to only $20,000 in interest in the average FDIC-insured money market account. Further, ADM accounts have generated 7x more interest income than traditional FDIC money market accounts since 2022.

Protect Nonprofit Cash with Access to Government Insurance

While more income is undeniably attractive for nonprofits, many are unwilling or legally unable to risk losses to achieve greater returns. Fortunately, our solutions provide competitive returns, backed by the government – offering no risk of principal loss.

Safety from market losses is only one half of the puzzle. Nonprofit cash also needs to be protected from the collapse of the financial institution holding it. Once again, our solutions provide the answer – insurance from the FDIC or NCUA.

Government insurance is typically limited to $250,000 per ownership category at each insured financial institution. However, many nonprofits have cash reserves that vastly exceed this threshold. Thankfully, our clients can access extended government protection for the entirety of their cash – even funds above the traditional limit.

Nonprofits Can Access Their Funds on Their Schedule

Returns and safety are top priorities for most nonprofits, but they also need to access their cash on their schedule. Our solutions deliver several options to ensure that an organization can spend their cash simply when it is needed.

For cash that is needed to cover operating expenses or could be required on short notice, our American Money Market Account [AMMA™] is an excellent choice. This account offers next-day liquidity as well as access to full government insurance and nationally competitive returns.

For cash earmarked for future projects, we offer Certificate of Deposit [CD] solutions that typically provide higher interest rates in exchange for managed liquidity. Like AMMA™, our CD solutions provide access to full coverage from the FDIC or NCUA along with competitive interest rates from the banks and credit unions in our nationwide network. We even help nonprofits create and manage CD ladders that match their spending schedule and optimize long-term returns.

Improve Working Relationships with Business Escrow Services

The cuts currently impacting the nonprofit sector are well known and could impair a grand-funded organization’s working relationships with new vendors or buyers during large transactions. Business escrow services are one way that nonprofits can give these partners the confidence to enter into a lengthy transaction – despite the ongoing funding uncertainty.

Escrow services are designed to protect buyers and sellers in large, lengthy, and complex transactions. Because they reduce risk for both parties, they add legitimacy to transactions where there are questions of solvency or reputation.

Business escrow services have existed for decades, but our modern escrow services provide enhanced benefits above and beyond the traditional expectations. Our solutions reduce transaction risk, provide access to full government insurance, and the highest level of customer service.

Nonprofits Thrive When They Partner With ADM

At ADM, our modern cash solutions provide access to the ultimate protection for cash reserves – insurance from the FDIC or NCUA – along with nationally competitive returns and liquidity options. We also offer easy business escrow services that protect organizations during key transactions. Together, these solutions help nonprofits succeed, even when funding is uncertain.

To learn more about our solutions for nonprofits, contact us today.

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