As organizations fundraise, they may sometimes find that they have money left over. Or an organization may choose to start saving some funds in case of an emergency. The Reserve Policy allows the organization to build guidelines around these funds, often outlining how much money can be held in reserve and how or when it can be used.
Reserve funds are also subject to Canada Revenue Agency (CRA) guidelines.
Links:
CRA Releases New Fundraising Guidance for Charities
Reserve Planning: A Step-by-Step Approach for Non-Profits
Templates and Examples:
Please note that the following examples are from American sources, and may need to be modified as per CRA rules:
https://www.propelnonprofits.org/resources/nonprofit-operating-reserves-policy-examples/#
https://ncg.org/sites/default/files/resources/Reserve%20Fund%20Policy%20Template%20and%20Guide.pdf
