We spend 83% of all donations on our programmes, whether directly in the form of programme costs, or indirectly in the form of reserves, which are devoted exclusively to programme costs when extra expenditure is needed (please see ‘Reserves Policy’ below).
The remaining 17% is spent on UK fundraising, as in the chart below.
For an explanation of how that 83% of donations is spent on individual projects, please click on Our Projects and go to the relevant project in the dropdown menu.
Reserves are the funds a charity keeps back so as to strengthen its resilience against, for example, drops in income or the unforeseen demands of a new project.
Asthma International puts aside 12% of all donations to meet these challenges in its operations. They include:
Why does Asthma International have this particular reserve figure? The main reason is to do with protecting children. Children with asthma, a serious and life-threatening condition, must be protected from patchy or intermittent treatment, and this protection can only be achieved with a substantial figure for reserves.
However, Asthma International’s trustees regularly monitor and review the reserves policy in response to changing funding and reserve levels. Currently, a level of 12%, neither too large to accumulate an unspent reservoir of money, nor too little to be unable to respond to the challenges above, is adjudged, in light of Charity Commission guidance, to be a reasonable level.
This can be downloaded at this link.
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