Concerns raised over charities' reserves
Charities
13th August 2010
Third sector agencies in the UK are struggling to hold reserves in their accounts, an organisation has warned.
According to the National Council for Voluntary Organisations (NCVO), its research team has found that one in three operating charities does not have any funding held back.
Meanwhile, the median figure for reserve levels among such bodies provided with state assistance is one month's worth of expenditure, with figures varying widely between different types of community or voluntary groups.
As a result, the NCVO has issued a warning to charities to ensure they have a "financial safety net" and has called upon public sector funders to ensure any essential cuts to assistance are "properly planned and implemented".
The organisation's chief executive Sir Stuart Etherington stated: "These figures show how vulnerable many community and voluntary organisations will be in the testing and unpredictable times ahead."
Charities seeking a UK insurance policy may also be interested to learn that the NCVO is holding a summit of leaders in the voluntary sector on August 17th in order to debate the government's spending review.
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