With lots of organisations' reserves taking a massive hit right now, I've put together a super-quick guide to reserves policies for anyone who's revising their own right now.

This guide also works if you're being asked to justify reserves levels by funders or want to pre-empt any concerns they might have. Especially in such unprecedented times.

#nevermoreneeded

 

Text on the image reads:

Credit: ‘Income to Impact’ by Adrian Poffley

1.     How the ideal level of reserves compares with the current reserves position.

2.     Outline the proposed action if the current position is not as intended.

3.     Outline the arrangement for monitoring and reviewing the policy.

4.     Explain how reserves are used to manage uncertainty.

5.     Explain if reserves are used to fund future purchases or activities.

6.     Explain how and when the reserves will be spent.