We are a youth project funded almost entirely by Grants from Charitable Trusts - which is typically to cover salaries, core costs and /or pieces of work. This makes the income restricted.
We wish to avoid what happened 20 months ago when the project nearly ceased operating due to a lull in the availability of funding and no reserves being held. Hence we have now adopted a reserves policy along the lines outlined by the Charities commission.
Where can we generate income to put into "unrestricted" reserves. We have no membership subscriptions - our services are all free to our clients. We rent our building and there is no scope to generate any rental income for ourselves.
I understand that if you underspend with a funders money you can go back to them and ask them if you can use the money in another way, such as continue the funded work over a longer period, or divert it to another activity or even core costs.
Will any funders agree to letting the under spend go into "unrestricted" reserves.
Any help or guidance with this problem would be most appreciated.
