Charities urged to act on reserves

Finance | Ian Allsop | 1 Dec 2006

A Charity Commission report into charities' reserves has revealed that while the proportion of charities with a reserves policy has risen from 27 per cent in 2002 to 40 per cent, charities with reserves totalling £3.6 billion still have no policy in place. Although this is an improvement on the 2002 figure of £5.5 billion, the Charity Commission and CFDG have urged charities without a policy to rectify the situation quickly.

Keith Hickey, CFDG chief executive, said: "While it's encouraging to see this increase in the number of charities with reserves policies in place, those without should act swiftly and enhance their potential for long-term sustainability and delivery."

Following the report. Charity Bank chief executive Malcolm Hayday said: "Putting reserves into mission-led investments, rather than simply letting them sit idle in bank accounts, means that charities can actively use their reserves to benefit good causes, while boosting their finances through earning interest, and still have the funds accessible when donations are lean."

Directory: Charity Bank Ltd | Charity Commission | Charity Finance Directors' Group (CFDG)
Who's Who: Keith Hickey | Malcolm Hayday

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