Why do charities hold reserves?

Charities might hold reserves for the following reasons:

● to fund working capital
● to fund unexpected expenditure, for example when projects overrun or unplanned events occur
● to fund shortfalls in income, when income does not reach expected levels
● to “buy some time” in the event of reduced income or changes in circumstances

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Joanna Pittman

Partner

Fleur Holden

Partner

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