Concern over strength of sector's reserves policies

By David Ainsworth, Third Sector, 10 September 2008

Charities that were under pressure to spend money in the good times might have insufficient reserves to deal with the credit crunch, a charity accountant has warned.

"Charities have been reluctant to keep high levels of reserves," said Reza Motazedi, head of charity at accountancy firm Vantis. "They've found it difficult to justify carrying large amounts of resources because they've been afraid of being criticised. "People have been reluctant to give money to charities with high reserves...