Milsted Langdon on why charity reserves policies deserve a fresh look

Good counsel for the charitable sector from No.20 member Milsted Langdon. Their latest piece notes that, according to the Charity Commission's analysis, charities with income under £500,000 reported a combined operating deficit of £290 million in 2024, down from £416 million the year before.

The firm explains that the Commission's reserves guidance sets no target level, but expects trustees to reason it through and publish a clear policy. Their advice is sensible and timely: revisit the figure each year, as costs have moved on. A useful read for any trustee.