About this episode

This episode explores the complexities of charity reserves and their relationship with cashflow and financial decision-making.

Pick up a copy of my newly published interactive, activity-based resource designed to help build confidence with charity finance terminology:: Charity Finance A–Z: A Creative Crossword & Colouring Book Or explore the glossary-style guide: Charity Finance from A - Z Reserves are often expressed as months of expenditure, which can feel reassuring — but the reality is often more nuanced. A charity may report healthy reserves and still experience periods where cash feels tight or flexibility feels limited. This episode explores why reserves do not always match the bank balance, particularly in larger or more complex organisations, and how reserves interact with cashflow, funding structures, and operational commitments. The aim is to help trustees and senior leaders interpret reserves with greater confidence, supporting calmer, more informed governance and decision-making. KEY TAKEAWAY Reserves are not the same as cash in the bank — they represent overall financial capacity, not necessarily immediate liquidity. Headline reserves figures may appear strong while underlying flexibility is more limited. Understanding how reserves interact with cashflow, funding structure, and strategy…

People in this episode

Host: Aishat

Topics covered

• charity finance
• reserves
• cashflow
• governance
• decision-making

Mentioned in this episode

Products: Charity Finance A–Z: A Creative Crossword & Colouring Book, Charity Finance from A - Z

Explore listener stats, chart rankings, contacts and more on the The Nonprofit Bookkeeper podcast page.