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Grex > Oldcoop > #226: Cyberspace Communications finances for December 2004 | |
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| Author |
Message |
| 7 new of 56 responses total. |
gelinas
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response 50 of 56:
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Jan 24 04:19 UTC 2005 |
Yes, were we to own one, it would be an investment. But sometimes,
investments have to be liquidated. In general, it is better to liquidate
at maturity. However, that is not always possible. Still, you don't want
to get a reputation for cashing out early.
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marcvh
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response 51 of 56:
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Jan 24 04:57 UTC 2005 |
What would happen if you "got a reputation for cashing out early"? At
the next nonprofit organization dance, all the other nonprofits would
gather around and make fun of you for your "premature withdrawal"?
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gelinas
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response 52 of 56:
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Jan 24 05:32 UTC 2005 |
Banks might be less willing to sell you a CD.
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tod
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response 53 of 56:
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Jan 24 06:35 UTC 2005 |
That is not my experience. They still get their dough.
If it were such a bad thing, they wouldn't allow it.
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janc
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response 54 of 56:
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Jan 24 18:10 UTC 2005 |
In any case, if banks (strangely) became reluctant to sell us CD's then we'd
be no worse off than we are now, when we aren't buying CD's for other reasons.
I have two reservations about buying CD's. First, I don't think Grex should
normally be sitting on a large amount of cash. Our money is donated to us
by users, who would probably prefer to see it invested in the system than to
see it deposited in the bank. So we should not be sitting on more than a
short term cushion, which isn't really a lot of money and isn't going to earn
a lot no matter how you invest it. If we have a big disaster and need a lot
of money, then we should expect to have to raise it from our users. Grex's
real financial cushion rests in the good will of our user community, not in
our bank account. If we ever had enough money that we could confidently put
a substantial sum away for a long period of time, then I think that money
should be invested in Grex, not put away. Grex should invest in Grex.
Second, it adds extra work for the treasurer, who already has plenty to do.
For the limited amount of money it earns us, this may not be worth the bother.
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tod
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response 55 of 56:
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Jan 24 18:33 UTC 2005 |
I also believe there is some sort of income threshold where Grex would be
expected to start making voluntary disclosures about its operations to the
Michigan State tax enforcement squad of auditors.
They kind of keep an eye on non-profits that start operating at a higher
level of liquid capital than the previous year.
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jesuit
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response 56 of 56:
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May 17 02:15 UTC 2006 |
TROGG IS DAVID BLAINE
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