The Australian Charities and Not-for-profits Commission (ACNC) has released a new guide to assist charities in maintaining and managing reserves, for the purpose of ensuring their financial stability and sustainability.
ACNC commissioner Susan Pascoe AM said she hoped the release of the guide would help correct misinformation which is proving damaging for the sector.
“Charities are often trying to get by on very little and sometimes are worried that if they build up healthy reserves, they’ll struggle to secure funding,” Pascoe said.
“We need to explain to the public that charities need to operate on a sustainable footing to be able to continue their work from one year to the next. Making a profit allows a charity to build reserves and become sustainable.”
To view a copy of the guide, click here