Reserves policy

Every charity has a reserve policy and every charity should revisit its policy at regular intervals to ensure it remains fit for purpose. Our reserve policy is designed to ensure we have sufficient funds available to continue our charitable activities should funding suddenly come to an end. While such an eventually should be unlikely (because intervention should address funding issues unless the charity depends on a large amount of its annual income from a single source that could be withdrawn at short notice - such as a grant), it is a model used by other charities. Our reserve policy could look like this:



However the above formula does not take into account other costs such as veterinary expenses that may occur. Therefore before a figure for Funds(£)available is given an amount should be deducted to reflect unforeseen veterinary costs. For our purposes we have deducted £1,000 based on the number of dogs in our care.