How resilient is your charity?
In the wake of a high profile closure of a multi-million pound charity, the Charity Commission have recently published it's latest guidance on reserves. Building Resilience (CC19)
Reserves are the free unrestricted funds available for it's use and can protect the charity against a temporary fall in income or an increased demand for it's services.
Charities must develop and publish a reserves policy and the guide explains:
- what reserves are
- the importance of having a reserves policy
- how to develop a reserves policy
- the legal requirements for publishing the policy and reporting on it
- what trustees should do to keep proper oversight of their charity’s reserves
This affects all charities and if your charity needs help in formulating a reserves strategy then please let me know.
Link to guidance