Applicant Reserves Policy
Rātā recognises the need for community organisations to hold appropriate cash reserves. The following principles are applied when taking account of any reserves a community organisation holds when assessing applications for funding.
Definition of reserves
Free reserves are considered to be those reserves not tagged or designated for specific purpose and may include cash or investments.
- Rātā Foundation wishes to ensure its funding is being actively utilised to deliver positive outcomes in the community
- Organisations are expected to hold reserves at a level to ensure the organisation is financially sustainable and may have a reserves policy which sets an appropriate level
- Where an organisation holds more than 12 months reserves, funding is more likely to be approved for a specific project rather than operating costs
- Treaty Settlements are considered to have been awarded for redress and are not considered as part of free reserves.
What we will look at
- What is the level of your organisation’s free reserves?
- If your organisations hold more than 12 months in free reserves, what does your reserves policy say about the need to exceed that?