Woolly Hugs’ Financial Reserves Policy

“Reserves” refer to the amount of money that Woolly Hugs holds unspent as a buffer against those “rainy days” where, for a variety of reasons, most likely to be economic climate, but not exclusively, we find that payments are outstripping receipts in a way that, without reserves, the charity wouldn’t be unable to function. We see it as a contingency fund against the unexpected. 

Woolly Hugs owns no property, nor employs staff. Our resources (primarily for events/Hugathons) are insured, but this contingency fund would protect us short term to continue our provision if something were to happen.

The trustees have set a level equivalent to 18 months of operating costs for the organisation as a desired level of reserve. 

The levels of reserves required are reviewed yearly.

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