Teens Unite Reserves Policy

1. Purpose
Teens Unite’s Reserves Policy aims to demonstrate transparency, accountability, and sound financial management. It clearly justifies the value of reserves maintained throughout the year to ensure the sustainability of the charity’s mission and the delivery of its programs.

2. Scope
Subject Area: The level of reserves, monitoring processes, associated risks, and compliance with charity sector regulations.
Individuals: This policy applies to all those working for or on behalf of Teens Unite, including its Board of Trustees, employees, and volunteers.

3. Policy
3. 1. Commitment to Beneficiaries
Teens Unite empowers teenagers and young adults to live life beyond cancer, offering tailored activities, workshops, residential stays, and skill-based programs. We provide free, inclusive, and adaptable support designed to improve mental and physical health, social interaction, and education and employment opportunities.

Our services include:
Regular activities and events (in-person and digital)
Residential stays
12-week skill-based programs, equipping young people with confidence and skills for education and employment Motivational speaker events and panels

To ensure uninterrupted delivery of our core support programs, we maintain unrestricted reserves of £187,217 sufficient to cover three months of operational costs

3.2. Rationale
Teens Unite’s Reserves Policy ensures adequate reserves are available to:
• Sustain normal operations for three months in the event of an income shortfall.
• Mitigate risks to income and expenditure.
• Respond to unforeseen contingencies or external challenges.

Exclusions from Reserves Calculations:
• Designated Funds: Allocated for specific purposes with defined timelines for expenditure.
• Donor-Restricted Funds: Earmarked for specific projects as stipulated by donors.

This approach aligns with the Charity Commission’s guidance on reserves, ensuring transparency and sound financial management.

4. Establishing the Level of Reserves
The Trustees determine the reserves level by assessing risks related to:
• Expenditure
• Unrestricted income
• Restricted income

Additionally, the Trustees evaluate external risks, including:
• Political uncertainty in the UK
• Ongoing economic challenges, including inflation, cost-of-living pressures, and geopolitical instability

The reserves level is set to ensure resilience during these potential challenges.

5. Reserves Level for 2025-2026
Risk Assessment (April 2025 - March 2026):
• Unrestricted income: Medium risk
• Restricted income: Low risk
• Expenditure: Low risk

After reviewing our current position, the following has been determined:

• Unrestricted income: A negligible reduction is observed. With two major fundraising gala events and an overseas fundraising challenge planned for the 2025/26 financial year, the risk of achieving the forecast income target is considered medium.

• Restricted income: An increase in unrestricted funding has been noted and assessed as low risk. The income is from a major donor—covering the salary of a critical role—and our ongoing efforts remain focused on broadening our income base and securing more unrestricted funding to support long-term sustainability.

• Expenditure: Due to the charity’s ongoing commitment to due diligence across all spending areas and the increased contribution of volunteer hours, the risk associated with expenditure remains low.

Teens Unite will maintain operational reserves equivalent to approximately three months of operating capital for the current budget period, amounting to £187,217. This figure includes mortgage repayments and running costs for Home Farm.

The current reserves are on track, with no shortfall anticipated.

Current Reserves Position:










Summary:

• Operational reserves of £187,217 represent three months of operational costs, including mortgage repayments for Home Farm.
• Designated funds of £600,000 allocated for specific purposes of developing the House of Teens Unite in the financial year 2025/26.

6. Monitoring and Reviewing the Policy

The reserves policy will be reviewed annually at the Trustees’ Annual General Meeting (AGM). The CEO will present supporting documents and recommendations to facilitate an informed decision. Adjustments to reserves levels will align with the charity’s strategic objectives and annual operating budget.

Policy last reviewed and approved 20.5.2025