Charities' record on reserves policy is improving

Charities' record on reserves policy is improving: A Charity Commission analysis of 286 trustees’ annual reports has revealed that almost four in five charities now have a reserves policy – a marked improvement on a similar survey conducted in 2006, when only two in five charities had one.

The recent review examined the trustees’ annual reports of around 95 charities in each of three income brackets - �25,000 to �250,000; �250,000 to �500,000, and over �500,000. It found that 78 per cent contained a reserves policy statement, and a further 3 per cent stated that the trustees have no reserves policy.