Thinking about… Charity Reserves
A research report into charity reserves management in Scotland
The Scotland Funders’ Forum commissioned IVAR ‘to understand how charity reserves can contribute to a dynamic and resilient third sector’ and explore ‘how charities can manage reserves for stability, but also how they can make reserves work harder’. The work has proved timely, given the critical role of reserves in managing the challenges (and opportunities) of living in increasingly volatile times. It has revealed positive examples of charities using reserves more creatively; and also highlighted the barriers which many charities face in seeking to sustain, let alone grow, their reserves because of the nature of their work and how it is currently funded. We hope this report will provide practical guidance as to how reserves can be managed more strategically, and what funders and regulators can do to help that happen.
This research report explores charity reserves management in Scotland but has practical advice that can be applied UK-wide.