The Charity’s Reserves fall into two categories: Restricted Reserves and General Reserve.
Restricted Reserves
These reserves are only available for use in accordance with the donors’ express intentions.
General Reserve
This reserve comprises sums that are freely available for general use and which are retained to enable the trustees to fulfil the Charity’s aims.
The general reserve is set at a level to withstand any short-term financial risks, the main ones being a significant fall in membership or in key sources of income, such as visits, trips and talks. If the general reserve falls outside the range of 12–18 months’ charitable expenditure cover, the trustees will review the business plan and make changes, as they consider appropriate.
The general reserve is not treated as an endowment fund.
Review of Reserves Policy
The reserves policy is to be reviewed annually when agreeing that year’s accounts or when there is a major change of circumstances.
Agreed by the trustees on 4 September 2018