Reserves help to maintain financial stability and allow a charity to meet its commitments, continue to undertake work, and deliver services, even when unexpected events or costs arise.
Why we hold reserves:
- to meet our commitments when expenditure overruns or unplanned events occur;
- to fund shortfalls in income, for example when income is delayed or does not reach expected levels;
- to fund unexpected events calling on our services;
- to fund future commitments or projects;
- to respond to unexpected difficulties or crisis.
By holding appropriate reserves, we are acting to protect the charity from future challenges, uncertainties and changes in economic circumstances.
The Immigrant Council of Ireland’s minimum reserves level is set at three months of ‘core’ unrestricted expenditure plus costs of closure.
As at 31/12/20 the Immigrant Council of Ireland holds reserves of five months of ‘core’ unrestricted expenditure which is more than its minimum target. Given uncertainty in the future economic outlook, the Board does not propose to take any actions to adjust the level of reserves being held.
Read our financial statements