Wondering if anyone can help I am chair of preschool and been going through the books with treasurer (helps that she is a friend so we tend to catch up often!!) and we have had a very successful year and have alot of money in the current account (we also hold a deposit account where we keep a set amount of money should we have to close/make redundancies but thats unlikely) anyway I have been searching and searching as I am sure there is a limit to what we can keep in the current account as we are a charity, does anyone have any idea what this amount is though??
The Charity Commission site seems to be saying that whether or not you decide to put money into a deposit account is a question of reasonableness rather than about a set limit at which you must invest.
If you are a charity then the funds you hold really should be put back into fullfilling your charitable aims. Of course you muct put sufficient funds aside to cover emergencies and asset purchases/renewals but if you have loads of money, why not spend it?
eg we've been very profitable this year so we've taken on an extra member of staff, paid for a summer trip and sent the staff on some really good training.