Hello, please I need some advice!

I recently submitted a grant application to one of the big, established Trusts and was really chuffed when we got a letter back saying we fitted their giving criteria.

However, I have now been contacted by one of the regional Trustees who said that although our application was very good, he was slightly surprised by the amount of our reserves. He clearly said that this might play against us, compared to other charities who don't appear to be as "rich". (At 31.03.2007 our reserves were the equivalent of approx. 15 months of total resources expended...)

I told him that part of it, was that Trustees had been counting on employing new staff (me - their first "naive" fundraiser...) and another part was to be used to buy another big piece of equipment in future.

I also told him we'd send him our current level of reserves and our preliminary accounts for year ending 31.03.2008., as it will show a more realistic picture (clearly reserves have dropped significantly since last year).

I have obviously informed my Trustees immediately and alerted them to the fact we needed to earmark some of this for the various purposes. But other than that, what can I do?? Tell them we need to spend more money?? The irony is that I am being told at each monthly Trustee meeting how I should "get on and fundraise for my salary" (not said that bluntly but still the message is there...)

This is really a catch 22 situation - as I now feel I can't really submit any more applications until our next accounts are published....Or, we need to accompany a letter explaining our current level of reserves.

Please, I'd appreciate some sound advice on what is the best thing to do?

Thank you.

C