Can charities fundraise and apply for grants or contracts if they have reserves?
Short answer Yes. It is important when fundraising that trustees maintain the confidence of the public in their charity by being open and transparent about their charity’s need for funds. If the charity has excess reserves, the trustees should ensure that they do not misrepresent the urgency or need for funds. When a charity is applying for a grant or is bidding for a contract, it is important that the funder understands the charity’s reserves policy and that the policy explains and justifies the reserves held. In more detail Every charity is responsible for ensuring that its appeals do not misrepresent the charity’s financial position. This is the case whether the appeals are for voluntary public donations, corporate donations, legacies, grants or any other form of income, and whether they are made by advertising, direct mail, in person or by any other method. If a charity is widely believed to have large reserves, further appeals for funds may provoke resentment against the charity f
