Yesoid Reserves Policy

Purpose of the Policy
The purpose of this reserves policy is to set out Yesoid’s approach to holding and managing financial reserves, ensuring the charity remains financially resilient, able to meet its commitments, and capable of responding to unforeseen events while continuing to deliver safe and effective services for young people.

Definition of Reserves
Reserves are defined as unrestricted funds that are freely available to spend on the charity’s activities. Restricted funds, designated funds, and fixed assets are excluded from reserves.

Reserves Rationale
Yesoid provides early-intervention mentoring and youth support services to vulnerable young people. The charity recognises that continuity, stability, and safeguarding are essential to this work. Holding an appropriate level of reserves enables Yesoid to:

  • Maintain core services during periods of funding uncertainty

  • Meet essential running costs and contractual commitments

  • Manage unexpected expenditure or short-term funding gaps

  • Respond to emerging safeguarding or operational needs

  • Plan sustainably for growth and development

Reserves Target Level
The Trustees have agreed that Yesoid should aim to hold reserves equivalent to between three and six months of core operating costs.

This level is considered appropriate given:

  • The charity’s reliance on grant funding and donations

  • The need to ensure continuity of youth mentoring services

  • The safeguarding responsibilities associated with working with young people

The target range will be reviewed annually and adjusted as necessary in line with changes to the charity’s size, activities, and risk profile.

Use of Reserves

Reserves may be used at the discretion of the Trustees for purposes including, but not limited to:

  • Covering short-term funding shortfalls

  • Managing unexpected costs or delays in grant income

  • Supporting service continuity during periods of transition

  • Meeting essential safeguarding, compliance, or governance costs

Reserves will not be used to fund ongoing activities where no sustainable funding plan is in place, unless explicitly approved by the Trustees as part of a managed transition or strategic decision.

Monitoring and Review
The level of reserves will be monitored regularly through management accounts and reviewed formally by the Trustees at least once per year as part of the annual budget and risk review process.

If reserves fall below or rise significantly above the agreed target level, the Trustees will agree on appropriate actions, which may include:

  • Developing a plan to rebuild reserves

  • Allocating excess reserves to specific future needs

  • Reviewing expenditure or fundraising strategy

Transparency
This reserves policy will be disclosed in the Trustees’ Annual Report in line with Charity Commission guidance, including:

  • The level of reserves held

  • The target level

  • Any plans to increase or decrease reserves

Approval and Review
This policy was approved by the Board of Trustees on: 07/01/26

It will be reviewed annually or sooner if there is a significant change in the charity’s financial position or operating environment.