Why is a reserves policy important and how should it be developed?
There is no single method or approach to setting a reserves policy.
The approach will vary but will involve a number of factors as articulated through the Charity Commission six step guidance on reserves framework:
03
Understanding the financial impact of risk
04
Reviewing sources of income
03
Understanding the financial impact of risk
04
Reviewing sources of income
05
Impact of future plans and commitments
06
Agreeing a reserves policy
Decide
Tailor
Choose
Whole of Market
Due Diligence
Why is a reserves policy important and how should it be developed?
There is no single method or approach to setting a reserves policy.
The approach will vary but will involve a number of factors as articulated through the Charity Commission six step guidance on reserves framework:
01
Understanding the nature of charitable funds held
02
Identifying functional assets
03
Understanding the financial impact of risk
04
Reviewing sources of income
05
Impact of future plans and commitments
06
Agreeing a reserves policy
Decide
Tailor
Choose
Whole of Market
Due Diligence