Public prefer charities to hold under a year’s funds in reserve
Most people prefer charities to hold less than a year’s worth of funds in reserve, according to a new survey.
Consultancy nfpSynergy polled 1,000 people on their view of charity reserves, and found just 6 per cent thought charities should hold on to more than a year’s expenditure. One in five people felt four to six months was wisest, while another 20 per cent preferred charities to hold six months to a year’s worth of funds in reserve.
Twelve per cent were happy to leave the decision on an appropriate level of reserves to charities themselves, while 19 per cent were happy with less than three months. Just over 20 per cent were unsure.