Why is it important to think about reserves?
Whether you are blessed with significant reserves, or scraping by with nothing spare, every PCC should have a Reserves Policy. The Charities Act requires charities to have a purpose in holding on to money, and a Reserves Policy shows the purpose for which reserves are held and in some instances the amount that should be held. When developing your Reserves Policy, you will need to demonstrate a clear rationale behind the decision that links with the mission of the church. Once your PCC have agreed a reserves policy, it should be communicated to your worshipping community.
The national church has produced some useful guidance on creating a reserves policy, including example policies, which can be found here. There is also additional advice on the Parish Resources website by clicking here.