Restricted, Unrestricted and Reserves: What Trustees Need to Get Right (Money Matters for Boards)
About this episode
Aishat discusses the importance of understanding restricted, unrestricted funds, and reserves for charity trustees.
🎁Download: Your Trustees Fund and Reserves Explainer Pack Grab your copy of my book Charity Finance from A - Z Check out ExpensePlus and sign up for a month's free trial and 10% off your first year's subscription, using my referral link http://expenseplus.co.uk/r/AI-BANC It’s Day 4 of our Trustee Week series, Money Matters for Boards! So far, we’ve explored how money connects to mission, how to read the numbers, and how budgets can tell your charity’s story. Today, we’re tackling one of the trickiest yet most crucial topics in charity finance — restricted, unrestricted, and reserves. Aishat breaks down what each fund type really means, how to keep your charity in control of its finances, and why trustees should never assume “money in the bank” equals “money to spend.” You’ll learn how to build healthy financial flexibility, protect your charity from risk, and strengthen long-term sustainability. KEY TAKEAWAY Restricted funds are money promised for a specific purpose. Unrestricted funds are your charity’s breathing space, used for core costs, governance, and new opportunities. Reserves are your safety net, built from unrestricted funds to protect your mission when things change…
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- Two Years In: Reflections on Governance, Finance and Decision-Making
- Why Reserves Don’t Appear on the Face of Charity Accounts
- Two Numbers, Two Stories: Cash vs Surplus
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