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

Task Completed


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 and what is held in restricted funds to help gain a picture of the finances of the church.
Both the Charity Commission 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.