Kids in Kathmandu Nepal (“KIKN”) is a small charity, with no staff or premises costs and only plans to spend the resource income that it receives from fund-raising for the benefit of the Saves Lives Foundation Orphanage, Shree Neel Barahi, Jana Sudhar and Lubhoo Schools, and from the regular payments made by sponsors for the benefit of individual children.
However, the Trustees recognise that there may be occasions when KIKN might need to call upon a reserves fund, and therefore has agreed to hold a minimum sum of £2,000 in its bank account as a reserve. This sum will be over and above the payments due to be transferred to Nepal on a quarterly basis and any fees due to be paid by KIKN (e.g. web-hosting fees, bank charges, fund-raising costs).
The rationale for holding reserves of £2,000 is as follows:
- A sum of £360 would cover on-going payments to benefit sponsored children for a period of six months, should any three persons cease to be sponsors in the same period. This would provide time to enable KIKN to recruit new sponsors, or to plan an exit strategy for the sponsored children if no new sponsors can be found.
- If, at the same time as 1. above, an emergency payment to benefit sponsored children or other KIKN projects was approved by the Trustees, there would be a maximum of £1,110 available to cover such a request.
Should it be necessary to call upon the reserves in an emergency, a decision can either be taken by the Board of Trustees or delegated to the Chair and Chief Officer of KIKN, as laid down in KIKN’s ‘Bank Account and Scheme of Delegation’ document.
Should reserves fall below £2,000, then topping up the reserve to this level will be the first call upon fund-raising, other than to resource regular quarterly payments and KIKN bank and web- hosting fees.
September 2016 (revised)