A sophisticated Charity Reserves Policy is linked directly to the Charity Strategic Plan.

To elaborate, if funders understand your strategic plan well, they shouldn’t have a problem with your Reserves policy having no upper financial limit.

Astute funders also expect to partner for a considerable period of time, with a charity that will be resilient enough to: weather ‘black swan’ events, fund the digital journey, invest in staff training, cope with industry disrupters, nurture fledgling commercial trading businesses and seek bigger charitable impact over time.

Astute funders also have clarity on the key risks your charity faces (perhaps better than your charity does itself) including; the existential risks such as ongoing relevance to the beneficiaries, professional members, or commercial subsidiary customers.

Simon