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1 Community Base holds financial reserves in order to finance
a
an unexpected, temporary decrease in rental income
b
an unexpected increase in running costs
c
capital expenditure to ensure the maintenance of our building and facilities
d
an ordered and proper winding up of Community Base should the need arise.
2 Community Base will seek to maintain reserves to finance these eventualities.
3 Community Base recognises that events may occur that only larger reserves would be able to finance. Community Base does not believe that building larger reserves by increasing its charges to charitable and community groups or decreasing its charitable expenditure would be the best use of its resources.
4 Community Base will ensure that all budgets it sets will as far as possible allow for the maintenance of reserves in accordance with this policy.
5 Reserves will be kept in an interest bearing bank account with CAF BANK, a charity.
6 This policy will be reviewed by the board of trustees at least every calendar year.
