Cash Machinations; why financial reserves are bad for beneficiaries and deceitful to donors
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The new research that we released this week shows that, on average, the public think seven or eight months is about the right amount of reserves for a charity to have in the bank. Around half of those who expressed a view thought six months of expenditure or less was the right level. Interestingly though, when the same people were asked how much a £12 million charity should keep in reserve, the average dropped to around £3 to £4 million.