What are the funds of a charity?

Understanding the funds of a charity is the essential starting point for consideration of the reserves of a charity.

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Below is a diagram from the Charities Statement of Recommended Practice (Charities SORP (FRS102)) setting out the classes of charitable funds. The proper administration of individual charitable funds is essential if charity Trustees are not to act in breach of trust as well as being important in the presentation of fund accounting in a charity’s financial statements.

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