Charities' Financial Reserves
Recommendations from the recent Charities Act Review could mean registered charities with operating expenses over $140,000 per year will be required to disclose information about the reserves they hold, and why they hold them, says Barry Baker, Partner and Not for Profit sector co-leader at Grant Thornton New Zealand. Baker expects NFPs who are not registered charities will also face pressure to disclose the same details about their reserves.
Baker says if this recommendation comes into effect, information about charities’ reserves will be made public, so they need to plan ahead for this potential change. “This is particularly the case for organisations holding significant levels of reserves. Our recent NFP sector report reveals 18% of organisations surveyed could survive on their reserves alone for two to five years. “It could be interpreted that these charities have more reserves than they need to advance their purpose, so these organisations need to develop improved reporting to clearly present their financial situation, and the purpose of their reserves to stakeholders and funders ...
<Full Article: The power of sunlight: Are you ready for your NFP reserves to be made public?>.
Service offered to Non-Profits
THE FLEA FM is a Community Radio Station that can link your phone System to our online system.
Your callers can listen to local and contemporary music or curated selection of soothing music or music from the 80s while they wait.
We can also advertise your organisation on our Website (currently being revamped), Facebook and on air.
If you wish to know more call us at 021 0285 4966 or Facebook The Flea FM
RESOURCES FOR NON-PROFITS
Our webpage has been updated
If you have an opinion piece, or article on a non-profit topic that you would like to be considered for the NFP Resource website or this newsletter please Contact the Editor to discuss