James Brooke Turner, Finance Director at The Nuffield Foundation speaking recently at the Association of Charity Foundations’ Investment Conference suggested that Charities have got into the habit of over-saving, that some have high reserves and that it is possible they have more than they need for the rainy day they anticipate.
What level of reserves does your charity have? In the past it has been suggested that a sensible amount to hold is approx 6 months’ running costs. However, we are aware that there are charities currently sitting on much more than that ‘just in case’ things get bad. How much worse are we planning on things getting?
Read this article from the Guardian, it is very interesting! If you do have reserves ‘to spare’ and you are considering what to do with them, Get In Touch!