Prompt: draft a reserves policy

A reserves policy explains how much unrestricted money your charity holds and why. This prompt drafts a starter policy from your own figures and reasoning — a first version for trustees to discuss, set and own. The reserves target must be your board’s reasoned decision, never the AI’s guess.

What to paste in

Give the AI your running costs, current free reserves, main financial risks, commitments, and any range trustees are considering. It drafts a reasoned policy and leaves the target marked for trustees to decide where you have not set it.

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What to check afterwards

Make sure the board actually discusses and sets the target based on your risks and commitments. Check the policy explains the reasoning, refers to free reserves only, matches your accounts, and carries a real review date the trustees will keep.

The Charity Commission expects trustees to set a reasoned reserves policy suited to their charity rather than a fixed figure (Source: Charity Commission CC19, accessed 9 July 2026; verified 11 Jul 2026).

Worked example

The illustrative example shows the reasoning behind the range, ties it to a real funding risk, and marks the target for trustees to confirm.

CharityIQ can draft a reserves policy grounded in your actual accounts and risk profile, leaving the decision with your board.