Glossary

“A contract presented alongside a pledge / gift which sets out the terms under which funding is offered.” This will often include clauses around the timescales in which money needs to be spent, the items which can be purchased, reporting and publicity requirements.

“The promise of a grant / gift by a supporter before the money is actually received by the recipient charity.” 

“The practice of presenting a budget which includes overheads (usually as a percentage) to ensure that core costs are covered by contributors to specific projects”. 

“A much shorter version of an Annual Report / Annual Review.  Designed to be easily read and enjoyed by supporters.  Usually contains a summary of management accounts and specific data on the difference a charity makes”.   An Impact Report often sets out a powerful, long term legacy vision to excite and inspire supporters.

“An annual document which contains management accounts plus additional information (not required by law) such as trustees’ review, summary of activities, strategic plans, case studies and a space to recognise and thank donors.” Also known as an Annual Review

“An annual document which sets out financial information of an organisation across a 12 month period.  Production and timely filing of management accounts is a legal requirement.”

“the amount of money which comes into an organisation annually” Otherwise known as ‘income’

“Reserves which the trustees have decided can only be spent on a specific purpose”. Similar to Restricted Reserves but with flexibility to revert funds to ‘unrestricted’ if needs be.

Reserves without restriction which can be spent on whatever the trustees decide (obviously within the charitable objectives as defined in an organisation’s constitution).

Reserves which can only be spent on a specific purpose (ultimately decided by the trustees, sometimes on the instructions / wishes of a donor whose gift is conditional). To spend restricted reserves on an item outside of the parameters set would be unlawful.