It has recently been suggested that charities should consider using some of their reserves to protect against inflation, and preserve their services.
Chris Philp, who until the seismic events of a few days ago was minister for technology and the digital economy, recently appeared before MPs on the Digital, Culture, Media & Sport Committee and suggested that charities should consider using some of their reserves to protect against inflationary pressures.
Now, whilst Mr Philp no longer holds that role, an important point is made; every charity should have a reserves policy so that your Board can easily decide if this is acceptable, or not.
If you don’t have a reserves policy, or if it has been a while since it was updated, then have a look at the helpful Charity Commission advice at https://www.gov.uk/guidance/charity-financial-reserves