Charity Reserves & the Use of Technology for Charities
Charity Reserves & Using Technology
In our final look back at our Annual Charity seminar, we review Charity Reserves and the use of technology for Charities.
Earlier this year the Charity Commission re-issued its guidelines on reserves, “Charity Reserves: building resilience (CC19)” which can be accessed here.
The revised guidance re-emphasises the importance of a reserves policy, stating that trustees should develop a policy that:
- Fully justifies and deeply explains keeping or not keeping reserves;
- Identifies and plans for the maintenance of essential services for beneficiaries;
- Reflects the risks of unplanned closure; and
- Helps to address the risks of unplanned closure for beneficiaries, staff and volunteers.
Trustees are also required to publish their reserves policy, ensuring that it is used, monitored and regularly reviewed by the Board.
Finally, the guidance stresses the importance of designated funds being genuine and fully explained, including the expected time of use. The Commission advise that designated funds which are “never used, or the nature of which are frequently changed without funds being spent, risk bringing the charity into disrepute.”
Use of Technology for Charities
Working digitally is becoming increasingly important in all sectors and in October 2016, the Charity Commission launched a series of questions for charity boards to consider. The “12 questions about digital for trustees” document is available here.
The questions, which cover everything from governance to culture and service delivery to security are intended to provide a starting point for discussions at Board level. Some charities will be more advanced than others in embracing modern day technology but the need to move forward in this area is becoming increasingly vital.
If you need any further advice in this area, particularly if you are considering cloud accounting, further information is available on our website here.
If you would like to discuss anything raised in this email in more detail please
contact us here.