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It’s Day 4 of our Trustee Week series, Money Matters for Boards!

So far, we’ve explored how money connects to mission, how to read the numbers, and how budgets can tell your charity’s story.

Today, we’re tackling one of the trickiest yet most crucial topics in charity finance — restricted, unrestricted, and reserves.

Aishat breaks down what each fund type really means, how to keep your charity in control of its finances, and why trustees should never assume “money in the bank” equals “money to spend.”

You’ll learn how to build healthy financial flexibility, protect your charity from risk, and strengthen long-term sustainability.

KEY TAKEAWAY

• Restricted funds are money promised for a specific purpose.
• Unrestricted funds are your charity’s breathing space, used for core costs, governance, and new opportunities.
• Reserves are your safety net, built from unrestricted funds to protect your mission when things change.
• Transparency builds trust. Clear reporting helps trustees see where flexibility exists.
• Consistency beats windfalls. Rebuilding reserves slowly and deliberately keeps your charity resilient.

BEST MOMENTS

“Money in the bank isn’t always money you can spend.”

“Unrestricted funds are your charity’s breathing space. Without enough, a charity can look busy on paper but still struggle to survive.”

“Reserves aren’t about hoarding money — they’re about being ready.”

ABOUT YOUR HOST

Aishat operates her own bookkeeping and accounting services practice –BAnC Services – which focuses primarily on serving non-profits. Before founding her practice, she dedicated over two decades to the non-profit sector.

With her podcast, Aishat shares practical insights and expertise to streamline financial management for non-profits, while also shining a light on the often unseen and unheard efforts that uphold the delivery of a non-profit’s mission.

She is the author of Charity Finance from A to Z“ – a practical guide designed to demystify finance for those working in the charity sector.

Beyond her professional endeavours with non-profits, Aishat is deeply committed to supporting single mothers in navigating financial challenges and champions financial literacy among young Black adults. She thrives in conversations about money, empowerment, and purposeful work.

Work with Aishat: www.bancservices.co.uk

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