Reserve Fund Policy

1. Introduction

The purpose of this policy is to outline how Runners Media CIC will manage its reserve funds to support long-term financial stability and ensure that the organisation can meet its obligations and sustain key operations during unexpected events or income fluctuations.

A reserve fund is not intended to replace income, but rather to serve as a financial buffer and support responsible risk management.

2. Objectives of Reserve Funds

Maintain continuity of essential community media services and staffing during periods of financial uncertainty.
Protect the organisation against unforeseen costs, income delays, or emergencies.
Provide flexibility to invest in strategic priorities, infrastructure, or innovation.
Strengthen funder confidence by demonstrating sound financial governance.

3. Target Reserve Level

Runners Media CIC aims to build and maintain unrestricted reserve funds equivalent to at least three months of core operating costs, including:

Staff wages (freelance or employed)
Basic overheads (e.g. office rent, insurance, equipment maintenance)
Essential platform and software subscriptions
Key community-facing activities or services

The target level will be reviewed annually as part of financial planning and budgeting.

4. Use of Reserve Funds

Reserves may be used for:

Covering short-term cash flow shortages
Emergency or crisis response (e.g. project disruption, loss of a major funder)
Repair or replacement of essential equipment
Investment in one-off opportunities that align with the mission (with Board approval)

Use of reserves must be approved by at least two Directors, and recorded in financial minutes, with clear reasoning and a repayment or recovery plan if applicable.

5. Rebuilding and Monitoring Reserves

If reserves fall below the minimum target level, the Directors will develop a plan to rebuild them over a reasonable period.
Reserves will be monitored quarterly, and any significant changes will be reported to the Board.
Annual review of reserves will form part of the CIC34 (Community Interest Company) report.

6. Restrictions and Transparency

Reserve funds will only be drawn from unrestricted income (e.g. donations, ad revenue, general sponsorships).
Restricted funds cannot be used for reserves unless explicitly permitted by the funder and documented.
The total value of reserves and their intended purpose will be disclosed in the annual accounts.

7. Responsibilities

Board of Directors: Accountable for setting the reserve strategy and approving use of funds.
Finance Lead or Treasurer: Responsible for tracking reserves, producing regular reports, and advising on reserve levels.
All Project Leads: Must plan projects with realistic budgeting that does not rely on reserve use without proper approval.

8. Review and Amendment

This policy will be reviewed every two years or sooner if the financial situation, funding landscape, or operational risk profile changes significantly.

Conclusion

The reserve fund is a critical part of Runners Media CIC’s commitment to long-term sustainability, responsible management, and community trust. By protecting our core capacity during uncertainty, we ensure we can continue serving the public and advancing our mission without disruption.

Phone

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07399111650

Email

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runnerscic@gmail.com

info@runnerscic.org

Location

Registered Address

12 Hessel Street, E1 2LP,UK

Training Address:

1-11 Assembly Passage, E1 4UT,UK

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