CAMFT Policy


Date: January 22, 2005  
 Accepted: January 22, 2005
Updated: January 21, 2012

The purpose of the Reserve Policy is to ensure that the Association has the financial means to continue to provide critical support to its members in both the short and long-term. Specific objectives of the Policy include sustaining basic operations and core member services during a short-term economic downturn, providing a source of capital to cover unanticipated temporary revenue shortfalls, and creating the ability to fund long-term strategic initiatives. “Reserves” are defined as the sum of unrestricted operating cash, short-term investments including certificates of deposit, and long-term investments, less any liabilities. Reserves shall be measured as of December 31 each year for the purposes of this policy. The target level for reserves is herein set to be an amount equal to 15 months of upcoming year’s budgeted expenses. This policy shall be reviewed by the Finance Committee, and Board of Directors at intervals not to exceed two years.

1. Association reserves are to be utilized for the following purposes:

  • When required to continue basic operations of the Association
  • In a financial crisis
  • To pay for unanticipated legal expenses incurred by the Association
  • To cover any uninsured loss of the Association
  • When the Association is faced with a crisis threatening the stability of the Association or the profession of marriage and family therapy in California
  • To pay for mid-long-term capital expenditure, which exceeds the Association’s operating fund abilities
  • To be used as venture capital or seed money for new programs or services necessary for organizational growth and for appropriate multi-year programs and services

2. Association reserves can only be utilized with the approval of two-thirds (2/3) of the Board of Directors.