Reserves policy guidance
The Charity Commission for Northern Ireland has produced guidance on reserves which is essential reading for anyone who is developing a reserves policy for the first time or indeed reviewing their current policy.
The Commission’s guidance explains the difference in restricted and unrestricted funds which is an important starting point in understanding how you determine what may be included in reserves.
The guidance answers the following questions:
- Why does a charity need reserves?
- Why have a reserves policy?
- What level of reserves is appropriate for my charity?
- How will we build up these reserves?
- How will the reserves be monitored and reviewed?
It also covers investments and reserves and how to report on reserves in the trustees’ annual report. In the appendix of the guidance it details how to write the reserves policy including the key headings that should be included. The guidance can be found at this link 'developing a reserves policy'.
Please also see our webinar recording (half hour) on creating/reviewing your reserves policy Creating/reviewing your reserves policy webinar recording | NICVA