Charity Registration Number: 1142150
Date of Investment Policy Statement: 1stMay 2018
1.1 Kids In Kathmandu Nepal (KIKN) is a limited company registered charity, whose purpose is to help poor and socially disadvantaged children and young adults in Kathmandu, Nepal to access education. We do this by raising funds from donations, grants and individual sponsorships, sponsoring 40 children through education, including university and by improving basic facilities and infrastructure in 4 schools in the Kathmandu Valley.
1.2 KIKN has annual income from fund raising, donations, sponsorships and grants of approximately £50-60k. Annual expenditure is approximately £40k. The charity’s reserve policy is to hold £5,000 as reserves to ensure continued financial security and to provide for contingencies.
1.3 As a result of an increasing number of our 40 sponsored children reaching 6thform and potentially to continue to university the Trustees have decided to hold a further £7,000 from last years income as a further reserve to cover these future increased educational costs.
1.4 KIKN has set aside a total sum of £12,000 of reserves as available for short term investment, while still being available to meet any unanticipated cash flow needs. This sum should be invested emphasising certainty of value.
2. Investment Objectives
2.1 KIKN seeks to produce the best financial return within an acceptable level of risk. As the major part of the reserve sum is expected to be spent over the next few years, capital preservation is of paramount importance.
3.1 Attitude to risk
KIKN is reliant on fund raising and donations for its activities.
The short term reserves are being held to provide financial security, and may be required at relatively short notice.
- Liquidity Requirements
4.1 The Trustees have decided that a cash sum can be invested for a 1year fixed term, maximising the potential interest gained, whilst the capital sum would be still be fully available at short notice in the event of any unexpected cash flow requirement. The chosen investment is Metro Bank Community Fixed Term Deposit Account for a 1year fixed term.
- Management, Reporting and Monitoring
5.1 The Trustees have decided that two signatories will be required to sign instructions relating to the investment. These will be Lai See Chew, Chief Officer and Stephen Smith, Trustee.
5.2 Reports on the investment will be made available to Trustees at the normal quarterly meetings.
- Approval and Review
This investment Policy Statement was prepared by Stephen Smith, Trustee of Kids in Kathmandu Nepal to provide a framework for the management of its reserves. It will be reviewed on an annual basis to ensure continuing appropriateness.