Charitable reserves and trustees’ investment powers and policies
The potentially diverse nature of a charity’s reserves, and their proper use, are often misunderstood by trustees, whose approach to their use may suffer either from being over-cautious (and therefore wasteful) or from recklessness (as in the case of the now defunct Kids Company).
In addition to making proper use of reserves and other funds available to them, all trustees should have some understanding of their powers to invest the funds of their charity and the policies they may adopt in giving effect to those powers.
This webinar will consider:
the nature of charitable reserves, and the definition of related terms including “endowment”, “designated” funds and “restricted” and ”unrestricted” funds
the proper use by charity trustees of funds retained as reserves, including the guidance issued by the Charity Commission in this area, and the development of trustees’ policies relating to reserves
the powers of charity trustees to make investments, including the power to make “social investments” under the Charities (Protection and Social Investment) Act 2016, and the development of investment policies
the delegation of trustees’ investment powers to investment managers
trustees’ reporting obligations with respect to reserves, investment and related policies