Reserve Accumulation Report

Tracking charity financial reserves and identifying potential hoarding

Why reserves matter: Operating charities should maintain reasonable financial reserves (typically 3-12 months of expenses) to weather unexpected challenges. However, excessive reserves (>18 months) may indicate that donor funds are being hoarded rather than used for charitable purposes.
About Endowment Foundations: This report includes 2 endowment foundations (e.g., Barnardos NZ Foundation, Cawthron Foundation). These entities are designed to hold large reserves permanently - their purpose is to invest capital and distribute only the income. High reserves are expected and appropriate for these organisations.
Charities Analyzed
12
With reserve data
Excessive Reserves
3
>18 months of expenses
Avg Reserve Level
33.0
months of expenses
Total Reserves Held
$414.8M
across all charities

Reserve Levels by Sector

Community Development
222.9
months avg
Education
59.3
months avg
Māori Development
49.0
months avg
Social Services
10.4
months avg
Environment
8.7
months avg
Other
3.0
months avg
222.9
months
Waipareira Investment GroupExcessive
Community Development• AucklandGrade F
49.0
months
National Urban Maori AuthorityExcessive
Māori Development• AucklandGrade F
21.9
months
Te Whanau O Waipareira TrustHigh
Social Services• Waitakere CityGrade C
8.9
months
The Cawthron Institute Trust BoardHealthy
Education• NelsonGrade B
8.7
months
Greenpeace Aotearoa IncorporatedHealthy
Environment• AucklandGrade C
4.9
months
Visionwest Community TrustLow
Social Services• AucklandGrade B+
4.3
months
Barnardos New Zealand IncorporatedLow
Social Services• WellingtonGrade A-
4.0
months
OSPRI New Zealand LimitedLow
Other• WellingtonGrade B-
3.7
months
TBfree New Zealand LimitedLow
Other• WellingtonGrade B-
1.4
months
Brackenridge Services LimitedLow
Other• ChristchurchGrade B

Understanding Reserve Levels

Reserve Categories

  • Excessive (>24 months): Significantly above best practices
  • High (18-24 months): May warrant scrutiny
  • Comfortable (12-18 months): Upper end of healthy range
  • Healthy (6-12 months): Best practice range
  • Low (<6 months): May indicate vulnerability

Why Excessive Reserves Are Problematic

  • Donor funds not being used for charitable purpose
  • Opportunity cost - funds could help beneficiaries now
  • May indicate governance issues or mission drift
  • Reduces transparency about actual operational needs
  • Can mask inefficiencies in fundraising or operations

Exception: Endowment Foundations

Endowment foundations (marked with an "Endowment" badge) are a special case. Their purpose is to hold capital permanently and distribute only the investment income to support charitable causes. High reserves are expected and appropriate for these organisations.