Section 3 



  1. The Charity Commission recommends that all charities should have a Reserves Policy in order to:
  1. demonstrate prudent management of funds
  2. provide existing or potential funders with a clear explanation of the

nature and purpose of any reserves held.

  1. The Puddenecks do not have any fixed overheads or liabilities and could therefore go for the lower end of the recommended 3 – 6-month funding.


The activities programme of the Puddenecks is evenly spread over the year. By contrast the main sources of fund-raising fall in the latter part of the year and cannot always be guaranteed to achieve target levels of income.

In order to reduce the risk of the activities being disrupted, and thereby reduce the level of benefit to our client group, the Committee has agreed to keep a level of financial reserves that equate to six months expenditure on ‘Guest’ events. In addition, the Committee has agreed to keep a contingency fund of £2,000 to guard against any unforeseen liabilities.

This policy is to be reviewed annually when the outturn from the previous financial year is known and reserves can be considered in the context of planning for the coming year.

Signed Bryan Harrison /Rab Butler February 2020

Last Reviewed January 2021