Draft reserves policy

Positive Steps, the government’s response to the Taskforce on Resourcing the Voluntary and Community Sector, gave a commitment to consider a specific Northern Ireland guidance on an organisational reserves policy.

Background to the draft guidance

Over the past few months Community Change, NICVA and the Volunteer Development Agency have been part of a working group with the Department for Finance and Personnel and Department for Social Development to develop a draft Reserves Policy that we hope relates to all voluntary and community organisations and represents what the public and a funder might expect to see in a well governed organisation.

What is the purpose of the guidance?

The purpose of this guidance is to provide organisations with best practice advice in respect of reserves and how the holding of reserves should be understood and justified by organisations through the development and agreement of a Reserves Policy.

Much of the detail in this document comes from guidance from the Charity Commission for England and Wales and may in the future be affected by the outworking of the new Charities legislation here.

Is the guidance legally binding?

Although the guidance is expected to be applicable to all organisations in the voluntary and community sector in Northern Ireland, in itself it has no legal authority.

Thanks for your views

We invited your comments on the content of the draft policy to be returned by 10 September 2007. The responses are currently being considered by the working group and the draft policy will be amended where relevant and a final draft will be made available in due course.