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 £5,000 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 £5,000 is as follows:
- There are an increased number of sponsored children entering sixth form and higher education, where education costs are higher, and more school projects are being funded in Nepal. Thus, if we lose any sponsors or regular donors, we have more funds to cover any immediate shortfall.
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 £5,000, then topping up the reserve to this level will be the first call upon fundraising, other than to resource regular quarterly payments and KIKN bank and web- hosting fees.
June 2019 (revised)