Charity reserves calculator

This calculator shows how many months of running costs your charity’s free reserves would cover — the figure trustees use to judge financial resilience. Enter your free reserves and annual running costs. There is no single “right” level; the Charity Commission expects trustees to set a reasoned target for their own charity.

How to use it

1. Enter your free (unrestricted, available) reserves.
2. Enter your total annual running costs.
3. Read the number of months your reserves would cover.

The method and its sources

• Months of reserves = free reserves ÷ (annual running costs ÷ 12).
• Free reserves exclude restricted funds, funds tied up in fixed assets, and (usually) designated funds — following the Charity Commission’s definition in CC19.
• No target level: CC19 (updated June 2023) sets no required figure; trustees must set and justify their own reserves policy based on their risks and commitments.

Source: Charity Commission “Charities and reserves” (CC19). Verified 10 July 2026.

How to read your result

This is guidance, not advice. The months figure is a starting point for a conversation, not a pass or fail. Read it alongside your income reliability, your commitments (like staff notice periods) and your risks. A charity reliant on one funder may reasonably hold more than one with steady, diverse income. Use the result to shape your reserves policy.

CharityIQ can track your reserves against your own policy and flag when they drift outside your target range, grounded in your accounts.