2026 Small Charities Week: Day 5 - How Small Charities Can Build Reserves Without Feeling Guilty

🎁 Download your free Day 5 resource: Building Reserves: A Small Charity Action Plan here Pick up a copy of my newly published interactive, activity-based resource designed to help build confidence with charity finance terminology:: Charity Finance A–Z: A Creative Crossword & Colouring Book Or explore the glossary-style guide: Charity Finance from A - Z Most charity leaders agree that reserves are important. The real challenge is knowing how to build them when funding is tight, demand is increasing, and every pound already feels committed. In this episode, Aishat moves beyond the debate about whether reserves matter and explores practical ways small charities can start building financial resilience. From small annual surpluses and full cost recovery to unrestricted fundraising and intentional board decisions, this episode focuses on realistic actions rather than ideal circumstances. Because reserves aren't money sitting idle, they're what help charities continue delivering their mission when challenges arise. KEY TAKEAWAY Reserves are built through intentional decisions Having a clear plan for reserves is more important than the amount of reserves. BEST MOMENTS "Instead of asking, 'Should we have reserves?' we should ask, 'How do organisations actually build them?'" "Reserves aren't simply money sitting in a bank account. They're breathing space, time, flexibility and they're options." "Sometimes the path to stronger reserves begins with stronger budgeting." REFLECTION QUESTION If your board agreed tomorrow that reserves matter... What would happen next? Would there be: A plan? Identified funding sources? A timeline? Named responsibilities? Or would everyone simply agree they were important and move on? ABOUT YOUR HOST Aishat operates her own bookkeeping and accounting services practice – BAnC Services – which focuses primarily on serving non-profits. Before founding her practice, she dedicated over two decades to the non-profit sector. With her podcast, Aishat shares practical insights and expertise to streamline financial management for non-profits, while also shining a light on the often unseen and unheard efforts that uphold the delivery of a non-profit’s mission. She is the author of Charity Finance from A to Z“ – a practical guide designed to demystify finance for those working in the charity sector. Work with Aishat: www.bancservices.co.uk CONNECT Instagram TikTok