Version March 2003

Contents

• Annex A - Research Techniques
• Annex B - Glossary of Terms
• Annex C - Resources for Trustees
• Annex D - Bibliography
• Acknowledgements
• Main document

Annex A -Research Techniques

The data used in this report was derived from seminars with Charity Commission staff, meetings with individual or groups of charities and through examination of the Charity Commission's extensive casework archive.

In addition, the data provided by charities on the Annual Return 2001 was closely analysed and an independent research company undertook a survey on behalf of the Charity Commission.

Annual Return Data

Data was derived from charities' answers to the following questions that appeared on the Annual Return 2001:

Q10a	Has the charity had in place during the financial year a policy that sets out the level of reserves needed to effectively meet the needs designated by the charity's trusts? (Yes/No)
Q10b	If the answer to 10a is 'Yes' does the charity's annual report contain a description of the policy? (Yes/No)
Q10c	Please state the total amount of reserves held by the charity.

The charity 'type' classifications used are derived from the answers charities gave on their Register Check form 2001.

Survey Techniques

In August 2002, the Charity Commission commissioned Martin Hamblin (GfK) to conduct a postal survey of 3,600 charities in England and Wales with an income over £10,000 to investigate the issue of charity reserves. The research achieved a response rate of 56% which is very high for a survey of this type.

The sample was stratified by income according to whether or not charities had a reserves policy.

Charity size classification

Small	Income less than £10,000
Medium	Income £10,000 - £249,999
Large	Income £250,000 - £999,999
Very Large	Income £1,000,000 +

Survey findings

Table 1 Number of charities who stated that they had or did not have a reserves policy in their Annual Return 2001.

	Estimated main charities on the register	Number of charities who have completed their Annual Return	Number of charities with a reserves policy	Amount charities with a policy have in reserves	Charities without a reserves policy	Amount charities without a policy have in reserves	Number of charities who did not answer	Amount charities who did not answer have in reserves
£10,000-249,999	51717	44371	9026	£1.9 billion	33236	£1.9 billion	2109	£60.5 million
£250,000- 999,999	6638	6001	3044	£2.7 billion	2788	£1.1 billion	169	£46.5 million
£1m and over	3966	3661	2381	£16 billion	1203	£2.6 billion	77	£74 million
Total	62321	54033	14451	£20.6 billion	37227	£5.6 billion	2355	£181 million

Table 2 Charity type and reserve ratios

	Charities with highest reserves ratios	%	Charities with lowest reserves ratios	%	Charities in the random sample	%
General charitable purposes	7	24	2	4	5	14
Education/training	10	34	12	21	12	34
Medical/health/sickness	3	10	8	14	0	0
Disability	1	3	6	11	6	17
Relief of poverty	0	0	4	7	1	3
Overseas aid/famine relief	0	0	1	2	2	6
Accommodation/housing	1	3	5	9	1	3
Religious activities	1	3	4	7	5	14
Arts/culture	1	3	4	7	0	0
Sport/recreation	0	0	3	5	1	3
Animals	0	0	0	0	0	0
Environment/conservation/heritage	5	17	4	7	1	3
Economic/community/development/employment	0	0	3	5	1	3
	29	100	56	100	35	100

Table 3 Has having a policy helped the charity?

		Size of Income
	Total	Medium	Large	Very large
	%	%	%	%
Yes	46	41	44	54
Neither helped nor hindered	45	50	44	39
No	6	5	7	7
Base	1042	346	331	365

Table 4 When reserves policies have been created.

	Total
	%	Number
Pre-1980	2	24
1980 - 1989	4	37
1990 - 1999	32	337
2000	21	215
2001	23	242
2002	5	49
NA	13	138
Base	1042

Table 5 What charities' reserves are for *

	Total
	%	Number
To ensure continuity in the event of a large variation of income	71	740
To spend in emergencies	41	425
To pay for specific future projects	40	411
To bridge cash flow problems	37	383
To cover specific liabilities, e.g. pension/contractual commitments	29	297
To generate income	20	206
Other	1	11
Base	1042

*Respondents could give more than one answer so table may add up to more than 100%

Table 6 The main architect of the reserves policy

	Total
	%	Number
Trustee body as a whole	39	411
Member of staff	25	264
Specific member of trustee body	19	193
Auditors	8	78
Professional advisor	6	61
Committee/group members	3	35
Others	0-1	4
Base	1042

Table 7 Why people found creating the Reserves Policy difficult *

	Total
	%	Number
Setting the levels of reserves	49	43
Difficulty in dealing with so many unknowns	23	20
Limited income or lack of guaranteed income	18	16
Explaining the need for reserves	13	11
Need more specific directions/advice from the Commission	12	10
Do not have any reserves	3	3
Others	19	16
Base	87

* Total number equals more than 87 as respondents may have written more than one reason

Table 8 Sources of advice/information charities use

	Total
	%	Number
Advice from auditors	56	585
CC19 - Charity Commission guidance	46	483
SORP 2000	31	323
A professional advisor	21	223
SORP examples - CC66	13	140
Operational Guidance from Charity Commission Website	11	113
Sector periodicals	11	110
Friend or associate	7	76
From trustees	4	45
From other charities/organisations	4	45
Other	3	36
None of the given suggestions	8	88
Base	1042

* Respondents could give more than one answer so table may add up to more than 100%

Table 9 Is the current amount that you hold in reserves…?

		Size of Income
	Total	Medium	Large	Very large
	%	%	%	%
Less than the planned level	29	17	31	40
Consistent with the planned level	58	67	54	52
More than the planned level	10	11	12	7
Base	1042	346	331	365

Table 10 Why some charities have less or more than the planned level of reserves

	Total
	%	Number
Income drop/fluctuations	14	58
Phase of high capital expenditure	9	35
Wanted to maintain/expand level of services/activities	8	32
Stock market movements have reduced investment income	8	32
Unexpected income/donations	7	29
Cost of ongoing maintenance/repair/refurbishment	6	25
Building project/bought/rent new project/relocation	6	23
Staffing issues	5	20
Only been running a short time/couple of years/reserve policy in place for short period	5	18
Difficulty attracting funding/aid/sponsorship	5	18
Expenditure lower than expected	2	6
Base	403

Table 11 The steps that charities are taking to remedy the situation

	Total
	%	Number
Build up/rebuild reserves in future	28	113
Strategic planning to achieve financial objectives	16	64
Monitor/reduce expenditure	12	50
Continue/increase fundraising	12	47
Capital projects planned	11	45
Review reserves policy and required level during budget planning	8	31
Attempt to obtain lottery/multi-year research and other grants	3	12
Set aside surpluses, as and when they become available	2	9
Make changes/review investment policy	2	9
Temporary bank overdraft/loans/continue trends of reducing net borrowing	2	8
Charge/increase fees	2	8
Disperse excess funds to other causes	2	8
New work coming on stream/carry out consultancy work/contract work/commercial activities	2	7
Base	403

Table 12 Does your charity have any of the following "contingency plans"?

	Total
	%	Number
Overdraft or other financial cushion	32	309
Help from members or patrons	23	226
Insurance	23	223
Use of other charity's facilities	9	89
Spend reserves	5	45
Only spend income as available/expenditure control	4	43
Local authority funding	2	15
Fundraising	2	20
Re-negotiation of contracts/salaries	1	8
Closure	1	6
No contingency plans	2	15
Others	3	27
NA/Don't know	24	230
Base	969

* Respondents could give more than one answer so table may add up to more than 100%

Table 13 When charities review their reserves policy *

	Total
	%	Number
When producing annual report/at Annual General Meeting	64	671
In conjunction with strategic planning	34	357
Irregularly - as and when necessary	19	198
Others	7	68
Do not review it	4	36
When budget setting	3	28
At trustees meetings	2	24
Don't know/NA	2	26
Base	1042

* Respondents could give more than one answer so table may add up to more than 100%

Table 14 Profiles of respondents

		With Reserves Policy	Without Reserves Policy
		%	%
Income	Medium (£10,000 - £249,000)	33	35
	Large (£250,000 - £999,999)	32	33
	Very large (£1 Million +)	35	32
Age of charity	0 - 5 years	7	10
	6 - 20 years	34	40
	21 - 100 years	45	42
	101 years +	13	7
Main Activity	Providing financial assistance	18	17
	Providing services/support	64	69
	Acting as umbrella/resource body	6	4
	Sponsoring or undertaking research	3	1
	Other/Not applicable	9	9
Source of income	Contract	19	18
	Donors	15	14
	Grants	21	25
	Investments	13	8
	Members	9	9
	Trading subsidiary	2	2
	Other/Not applicable	21	24
Provision in Governing Document that refers to reserves?	Yes	22	11
	No	67	70
	Don't know/NA	9	19
Base:		1042	969

Table 15 Reserves held by charities without a policy

Does the charity have any money that could be described as reserves?

		Size of Income
	Total	Medium	Large	Very large
	%	%	%	%
Yes	64	59	68	65
No	34	39	30	34
Don't know	1	1	2	1
NA	1	2	1	1
Base	969	334	324	308

Table 16 Amounts that charities without a policy have in reserves

How much money do you have that could be described as 'reserves'?

		Size of Income
	Total	Medium	Large	Very large
	%	%	%	%
£1 - 10,000	21	48	11	6
£10,001 - £50,000	26	32	33	13
£50,001 - £250,000	29	14	38	35
£250,001 - £1 million	14	5	13	25
More than £1 million	9	1	5	21
Base	969	334	324	308

Table 17 Why charities had not developed a reserves policy

	Total
	%	Number
No funds to keep in reserves	33	315
Have not considered having one	29	280
Not obliged to have a policy	20	191
Reserve policy agreed/in progress	18	173
Don't know how to create the policy	6	59
No time to consider the issue of reserves	6	53
Informal reserve policy	5	47
All income spent/income balanced with expenditure	4	36
No reserve policy	4	34
Do not want to disclose this information to others	2	22
Reserve policy to be set at year end	2	17
Too difficult	1	11
Others	2	14
Base	969

* Respondents could give more than one answer so table may add up to more than 100%

Table 18 Ease with which policy was created

How easy or difficult did your charity find creating your reserves policy?

		Size of Income
	Total	Medium	Large	Very large
Ease/difficulty found in creating reserves policy	%	%	%	%
All those who found it easy	44	52	41	40
All those who found it difficult	8	5	11	9
Very easy	13	20	13	7
Quite easy	31	32	29	33
Neither easy nor difficult	45	40	44	50
Quite difficult	8	5	11	8
Very difficult	1	-	-	1
Base	1042	346	331	365

Table 19 Advice that charities without a policy had sought

Have you consulted any of the following for advice on how to set up a Reserves Policy?

	Total
	%	Number
Auditor	29	282
CC19 - Charity Commission Guidance	22	216
SORP 2000	17	165
A professional advisor	13	130
SORP examples - CC66	12	114
Operational Guidance from Charity Commission Website	9	91
Friend or associate	4	39
Sector periodicals	2	21
Trustees	-	4
Others	1	12
No, none of the above	48	468
Nothing / NA	7	66
Base	969

Table 20 Reasons for not developing a policy after having sought advice

	Total
	%	Number
Policy in process of being formulated	24	121
Policy now in place	21	105
Policy low priority/not seen as necessary	6	33
Insufficient funds	6	31
Funds fully utilised/sufficient for our needs	4	21
Do not have reserves	4	21
Lack of time	3	14
No requirement until now	2	10
Funding from elsewhere	1	7
Undergoing major changes	-	2
Others	2	10
NA	33	167
Base	501 (all who sought advice)

Table 21 Areas set out in written policies

What areas does your written policy set out? *

	Total
	%	Number
Reasons why your charity needs/does not need reserves	80	608
The level or range the Trustees believe the charity needs	73	553
Arrangements for monitoring and reviewing the policy	40	304
Steps the charity is going to take to establish reserves at agreed level	30	223
None of above	3	20
Base	761

* Respondents could give more than one answer so table may add up to more than 100%

Table 22 Where charities publish their policies*

	Total
	%	Number
In the trustees' annual report	84	640
Financial accounts/statements	2	18
Fundraising literature	2	14
Charity's Website	1	11
Trustee minutes	1	9
Newsletter	1	8
Committee minutes/reports	1	8
Business plan/strategy document	1	7
Meetings of members	1	5
Annual report	-	3
Policy and procedures document	-	3
Others	4	27
We do not publicise the policy	12	94
Base	761

* Respondents could give more than one answer so table may add up to more than 100%

Table 23 Parties that have expressed an interest in charities' reserves policies*

	Total
	%	Number
Trustees	67	695
Auditors	59	619
Grant-giving bodies	21	215
Charity Commission	19	193
Employees	11	116
Financial advisors	11	119
Donors	9	95
Fundraisers	5	53
Public	2	16
Members	1	14
Media	1	5
Others	2	18
No-one	16	167
NA	4	37
Base	1042

* Respondents could give more than one answer so table may add up to more than 100%

Annex B - Glossary of Terms

Reserves. The term 'reserves' has a variety of technical and ordinary meanings, depending on the context in which it is used. As in SORP 2000, here we use the term 'reserves' (unless otherwise indicated) to describe that part of a charity's income funds that is freely available for its general purposes.

Reserves are, therefore, the resources the charity has or can make available to spend for any or all of the charity's purposes once it has met its commitments and covered its other planned expenditure.

More specifically SORP 2000 defines reserves as income which becomes available to the charity and is to be spent at the trustees' discretion in furtherance of any of the charity's objects (sometimes referred to as 'general purpose' income); but which is not yet spent, committed or designated (i.e. is 'free'). This definition of reserves therefore excludes:

• permanent endowment;
• expendable endowment;
• restricted funds;
• designated funds; and
• income funds which could only be realised by disposing of fixed assets held for charity use.

Income funds are all incoming resources that become available to a charity and that the trustees are legally required to apply in furtherance of its charitable purposes within a reasonable time of receipt (the proper exercise of a power of accumulation is an application.)

Unrestricted funds (including designated funds) are expendable at the discretion of the trustees in furtherance of the charity's objects. If part of an unrestricted fund is earmarked for a particular project it may be designated as a separate fund, but the designation has an administrative purpose only, and does not legally restrict the trustees' discretion to apply the fund.

Restricted funds are funds subject to specific trusts, which may be declared by the donor(s) or with their authority (e.g. in a public appeal) or created through legal process, but still within the wider objects of the charity. Restricted funds may be restricted income funds, which are expendable at the discretion of the trustees in furtherance of some particular aspect(s) of the objects of the charity. Or they may be capital (i.e. endowment) funds, where the assets are required to be invested, or retained for actual use, rather than expended.

Endowment funds. An endowment fund where there is no power to convert the capital into income is known as a permanent endowment fund, which must generally be held indefinitely. This concept of 'permanence' does not, however, necessarily mean that the assets held in the endowment fund cannot be exchanged (though in some cases the trusts will require the retention of a specific asset for actual use e.g. a historic building), nor does it mean that they are incapable of depreciation or loss. What it does mean is that the permanent endowment fund cannot be used as if it were income (i.e. to make payments or grants to others).

Trustees may have the power to convert endowment funds into expendable income; such funds are known as expendable endowments. (Expendable endowment is distinguishable from 'income' by the absence of a positive duty on the part of the trustees to apply it for the purposes of the charity, unless and until this power to convert into 'income' is actually exercised.) If such a power is exercised the relevant funds become restricted or unrestricted income, depending upon whether the trusts permit expenditure for any of the purposes of the charity, or only for specific purposes.

Total return is the whole of the investment return received by a charity, regardless of when it has arisen and how it has arisen.

Un-applied total return is the total return less any that has already be applied for the purposes of the charity (income).

Insolvency. Charitable companies are 'legal persons', can incur liabilities, and can become 'insolvent'. Such a charity can be deemed insolvent either:

• when it is unable to pay its debts as they fall due; or
• when the value of its assets is less than the amount of its liabilities taking into account its possible and prospective liabilities.

These two tests have a legal basis for charitable companies, as they are aspects of the definition of inability to pay debts in s.123 of the Insolvency Act.

Unincorporated charities are not 'legal persons' and cannot technically incur liabilities, which are instead incurred by their trustees, acting on their behalf. Unincorporated charities cannot, therefore, technically become insolvent. However, a charity may reach the financial state where the value of the assets in the trust which are available to the trustees to settle their liabilities are insufficient. In the context of unincorporated charities 'insolvency' is used to describe this situation.

For more information on insolvency please refer to our leaflet; Managing Financial Difficulties and Insolvency in Charities (CC12)

Must is used to refer to actions that trustees are obliged to take, most of these are legal requirements.

Should is used to suggest actions which we consider to be good practice and which we expect trustees to follow.

Annex C - Resources for Trustees

There are many resources which charity trustees can tap into to help them with managing Charity Reserves. Whilst this is not a definitive list of all the sources of information available it does offer a useful starting point. The publications listed in Annex D may also be useful.

Organisations

• The Charity Commission for England and Wales

Responsibility for charities is split between our three offices. Further information can be obtained from the Commission at:

London Harmsworth House 13-15 Bouverie Street London EC4Y 8DP

Liverpool 12 Princes Dock Princes Parade Liverpool L3 1DE

Taunton Woodfield House Tangier Taunton Somerset TA1 4BL

Tel: 0870 3330123

Minicom: 0870 3330125

e-mail

• Association of Chief Executives of Voluntary Organisations (ACEVO)

ACEVO provides good practice resources and information on sector issues.

83 Victoria Street
London
SW1H OHW
Tel: 0845 345 8481

www.acevo.org.uk

• Association of Charitable Foundations (ACF)

ACF promotes and supports the work of charitable grant-making trusts and foundations.

2 Plough Yard
Shoreditch High Street
London
EC2A 3LP
Tel: 020 7422 8600

www.acf.org.uk

• Charities Aid Foundation (CAF)

CAF helps non-profit organisations in the UK and overseas to increase, manage and administer their resources.

Kings Hill
West Malling
Kent ME19 TA
Tel: 01732 520000

Website: www.cafonline.org

• Charity Finance Directors' Group (CFDG)

CFDG provides information for its members and others on a range of issues and specialises in helping charities to manage their accounting, taxation, audit and other finance related functions. Benefits of membership include regular members' meetings, monthly mailings and access to information and services.

Camelford House
87-89 Albert Embankment
London SE1 7TP
Tel: 020 7793 1400

e-mail

Website: www.cfdg.org.uk

• Directory of Social Change (DSC)

The Directory promotes positive social change and provides a wide range of resources for trustees.

London 24 Stephenson Way London NW1 2DP

Liverpool Federation House Hope Street Liverpool L1 9BW

Tel (books): 020 7209 5151

Tel (training and events): London 020 7209 4949 & Liverpool 0151 708 0117

Website: www.dsc.org.uk

• Inland Revenue (IR)

For information on tax issues relating to charities.

IR Charities

Room 140
St John's House
Merton Road
Bootle
Merseyside L69 9BB
Tel: 0151 472 6036 / 6037 (general enquiries)

Website: www.inlandrevenue.gov.uk

• Institute of Fundraising

The Institute of Fundraising aims to promote the highest standards of fund-raising practice.

Market Towers
1 Nine Elms Street
London SW8 5NQ
Tel: 020 7627 3436

e-mail enquiries

Website:www.institute-of-fundraising.org.uk

• Management Accounting for Non Governmental Organisations (MANGO)

MANGO provides specialist accounting support to humanitarian organisations working in developing countries.

97a St Aldates
Oxford
OX1 1BT
Tel: 01865 433885

e-mail

Website: www.mango.org.uk

• National Association for Councils for Voluntary Service (NACVS)

The NACVS network provides a wide range of information and support for charities.

National Association for Councils for Voluntary Service

3^rd Floor Arundel Court
177 Arundel Street
Sheffield S1 2NU
Tel: 0114 278 6636

e-mail

Website: www.nacvs.org.uk

• National Council for Voluntary Organisations (NCVO)

Information available on fund-raising and governance issues and a range of general support services.

National Council for Voluntary Organisations

Regent's Wharf
8 All Saints Street
London N1 9RL
Tel: 020 7713 6161

e-mail

Website: www.ncvo-vol.org.uk,
www.askncvo.org.uk

• VolResource

This internet only resource for charities offers quick links to useful organisations concerned with the effective running of charities.

e-mail

Website: www.volresource.org.uk

• Wales Council for Voluntary Action (WCVA)

WCVA supports charities and the voluntary sector in Wales.

Baltic House
Mount Stuart Square
Cardiff Bay
Cardiff CF10 5FH
Tel: 029 20431700

e-mail

Website: www.wcva.org.uk

Journals, magazines and newspapers

• Charity Finance

3 Rectory Grove
London
SW4 0DX
Subscriptions - Tel: 020 7819 1200

e-mail

Website: www.charityfinance.co.uk

• Charities Management

Mitre House Publishing
The Clifton Centre
110 Clifton Street
London EC2A 4HD
Subscriptions - Tel: 020 7729 6644

• Charity Times

Subscriptions - Tel: 020 7426 0496 / 0123

Website: www.charitytimes.com

• The Guardian / Society

The Society section in Wednesday's edition of The Guardian is particularly useful.

Website: www.SocietyGuardian.co.uk

• Third Sector

Subscriptions tel: 020 8606 7500

e-mail

Website: www.thirdsector.co.uk

Annex D - Bibliography

Bashir.H., (1999) Good Financial Management Guide. NCVO. London.

BBC News (1999) UK taking stock of charitable assets. BBC. January 4^th .

Bussy. P., (2002) Counting on the future. Charity Finance, July PP 30-32.

Cater.N., (2002) Bad for Business. Guardian Society April 10^th .

Charity Commission (2002) Charities' Reserves (CC19). HMSO.

Charity Commission (2000) Accounting and reporting by Charities. Statement of Recommended Practice. HMSO

Charity Commission (2003) Accounting and Reporting by Charities, Statement of Recommended Practice (the charities SORP) Update Bulletin 1. HMSO.

Charity Commission (2003) Charities and Investment Matters: A guide for trustees (CC14).

Charity Commission (2000) Managing Financial Difficulties and Insolvency in Charities (CC12). HMSO.

Charity Commission (2001) The Independence of Charities from the State (RR 7) HMSO.

Charity Commission (2000) SORP: 2000 Example Reports and Accounts (CC66). HMSO.

Charity Commission (2002) Charities and Risk Management.

Charity Commission (2002) The Hallmarks of a Well-run Charity (CC60). HMSO.

Comptroller and Auditor General (2000) Charitable Funds associated with NHS bodies (Ordered by the House of Commons to be printed 12 June 2000). HMSO. London.

Gillingham. S., Tame. J., (1997) Not just for a Rainy Day? NCVO. London.

Gutch. R., (2002) Beginning of the journey. Guardian / Society. June 26^th .

Harker. L., (2002) Invest in the Rest. Community Care. September 5.

Hayday. M., (2000) Kick-starting a capital market for charities. NGO Finance magazine Vol 10 issue 6. July/ August.

Hill. N., (2001) Stormy Waters, Guardian/ Society. January 17.

Hill. N., (2002) Risk Management, Guardian / Society. April 10.

Hind, A., (1995) The Governance and management of charities, The Voluntary Sector Press. High Barnet.

Howe. M., (2002) Voluntary sector facing funding crisis warns investment house. Charity Week August 13.

Hudson, M. (1999) Managing without profit, 2^nd Edn, Penguin, London.

Jacoby. C., (2002) What Course in The Storm? Third Sector. August 21.

Little. M., (2002) Charities told to improve reports. Third Sector September 4.

McCurry. P., (2001) Taking the risk out. Guardian /Society. November 21.

Maggs. L., (2002) Name and Shame threat looms over account reporting. Third Sector. April 3.

Morgan. N., (2002) Charity Reserves. Governance, Volume 1, (2), Winter.

Peacock. G., (2002) Opinion: Debunk myths that persist in public thinking. Third Sector. September 25.

Pianca. A., Dawes.G., (2002) Charity Accounts, A practical Guide to the Charities SORP, second edition. Jordans Publishing. Bristol.

Plummer. J., (2002) How Can Charities best manage reserve funds? Third Sector, October 16, 2002

Poffley. A., (2001) Moving beyond budgeting. Charity Finance. July.

Poffley. A., (2002) Financial Stewardship of Charities. Directory of Social Change. London.

Poffley. A., (2002) Bear in mind. Charity Finance. September.

Pybus. J., (2002) Cash balancing act. Guardian/ Society. April 10.

Pybus. J., (2002) Your best communication tool. Third Sector. May 8.

Ramrayka. L., (2002) Directing finances in the wake of disaster. The Guardian/ Society. April 10.

Reece. D., (2002) Why stock markets aren't working for charity. Sunday Telegraph. August 4.

Taylor. D., (2001) How to compile the perfect charity report. Speech published in Guardian / Society. February 12.

Travis. A., (2002) Scrapped, the secret funds that few knew existed. Guardian. June 3.

Vincent. R., Francis. A., (2001) Charity Accounting and Taxation, Butterworths Tolley. London

Picarda, H. (1995) The law and practice relating to charities, 2^nd Ed., Butterworths, London.

Warburton, J (1995) Tudor on Charities, 8^th Ed., Sweet & Maxwell. London.

WCVA, (2002) Faith and hope don't run charities (trustees do): a practical guide to voluntary members of management committees. Cardiff.

Acknowledgements

We would like to thank all the charities that gave their time to contribute to the production of this report, with special thanks to the Charity Finance Directors' Group and its members for their involvement.

We would also like to thank Professor Paul Palmer for his help and valuable insights.