Financial Reserves Analysis

Charity cash reserves and financial sustainability - months of operating reserves

Financial Reserves Explained

Reserve months indicate how long a charity could operate if all income stopped. Some reserves are prudent; excessive reserves may mean funds aren't being used.

3-12 months: Prudent buffer for sustainability

1-3 months or 12-24 months: May need adjustment

<1 month or >24 months: Too little security or hoarding

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