Reserves Policies | Trustees’ Short Guide Series

In a charity landscape facing ongoing inflationary pressures and increased demand for services, financial stability is no longer a luxury, it’s essential. Our Reserves Policies guide offers trustees and charity leaders a clear, practical framework for understanding, assessing and setting appropriate reserves in line with SORP 2026.

This concise guide is designed to help you make informed, forward‑looking decisions that support long‑term stability, stakeholder confidence and good governance. Using this guide, you’ll learn:

• What counts as reserves under SORP 2026 and how to calculate freely available funds
• Factors that influence reserve levels, including restricted funds, pension liabilities, fixed assets and designated funds
• New disclosure requirements and how to ensure your reserves figure reconciles with your accounts
• How reserves link to risk management and going concern assessments
• Why an effective reserves policy matters for funders, beneficiaries and overall organisational resilience
• How to develop, and regularly review, a tailored reserves policy aligned to your charity’s size, structure, risks and future plans.