Reserves

The money that churches hold, or don't hold, in reserves is one indicator of financial health. The financial analysis therefore looks at how the church has used its operational reserves what is currently available as free reserves and what is held in restricted funds. The goal is to paint a picture of the finances of the church. A template and guidance to do this work are available under Downloads.

Charity Commission, biblical wisdom (Prov 21:20) and good stewardship practice suggest that churches hold reasonable levels of reserves and that those reserves are used in pursuit of the aims of the church. Getting this balance right is not easy and preparing a good reserves policy can really help gain clarity on this important point. Our aim here is more limited: to discover what the level and use of reserves can tell us about the church's financial situation.

Downloads

A purse with holes: guidance on looking at reserves
Reserves Analysis
Reserves Analysis example

"excel in this grace of giving" (2 Cor. 8:7)

Building the Case

Reserves

Downloads