By David Roberts MBA FCCA. Former PLC CFO who previously worked at PwC, with hands-on international establishment, transformation, carve-out and integration experience. GAP Consultants was established in 2001. Published 8 October 2026.
A reserves figure is useful, but it cannot tell trustees whether services are financially sustainable, cash is available when needed or the organisation has the capacity to improve. A good sustainability review connects those questions.
This guide is for charity CEOs, trustees and finance leaders facing funding pressure, changing demand or a gap in senior finance capacity. It draws on practical finance leadership and transformation experience. The Charity Commission references below apply to England and Wales.
1. Establish what money is available, and when
Distinguish bank balances, restricted funds, unrestricted funds, reserves and future commitments. They answer different questions. A large bank balance can coexist with limited flexibility if money is committed or restricted. Reconcile the position and map receipts and payments in a rolling cash forecast.
The Charity Commission’s CC19 reserves guidance explains that there is no universal reserves target. Trustees should base their policy on the charity’s circumstances and risks. Restricted funds sit outside its definition of reserves.
2. Understand the economics of each service or programme
Start with the funding earned or awarded, the cost of delivery and the support needed to sustain it. Make assumptions about shared costs clear. Show where a service needs subsidy, why that subsidy supports the mission and how it will be financed.
- Compare contractual or grant income with the activity actually delivered.
- Check rates, billing, claims and collection against the underlying records.
- Include staffing, premises, systems and relevant support costs.
- Distinguish temporary start-up costs from a recurring funding gap.
3. Test the funding assumptions
Separate secured income from renewals, bids and aspirations. Build scenarios for delayed receipts, reduced awards and rising delivery costs. Identify the point at which the organisation must change its plans, and the lead time needed to act responsibly.
4. Find recoverable income and avoidable friction
Before assuming that every gap requires cuts or new fundraising, check whether income is being lost through incomplete contract data, missed claims, outdated rates or billing errors. Review manual work and weak hand-offs that absorb scarce capacity. Give each improvement an owner and a way to verify the result.
5. Cost the change as well as the problem
Financial pressure often leads to postponing investment in people and systems. That can leave the underlying weakness in place. A credible improvement plan sets out implementation costs, realistic benefits, timing, internal capacity and how the work could be funded. Any use of reserves or financing needs to be assessed in the charity’s own circumstances, including restrictions and commitments.
6. Give trustees a decision brief
- The current cash position and forecast, with key assumptions.
- Services or programmes requiring subsidy and the reasons.
- Options, costs, risks and effects on beneficiaries and staff.
- Named actions, decision dates and indicators of progress.
- A clear distinction between one-off recovery and sustainable improvement.
Experience and a practical next step
GAP’s not-for-profit experience includes finance stabilisation, income recovery, service-level performance improvement and purpose-led restructuring. A defined review can establish the facts and produce a prioritised improvement roadmap. Continuing part-time finance leadership can then support cash forecasts, trustee reporting and implementation.
See the international-charity finance stabilisation case study and GAP’s not-for-profit service and delivery examples. For regulatory guidance, also see Managing charity finances.
How GAP can help
GAP’s not-for-profit finance leadership and sustainability support can begin with a defined review and progress into implementation or recurring part-time finance leadership. Scope, fees, capacity and start dates are agreed before work begins.
Tell David the funding, cash or service-performance decision your trustees need to make and when. The initial conversation can establish whether a focused sustainability review or interim finance support would help.
Discuss your charity’s financial priorities with David
Prefer email or a call? Email David or call 07831 139751.