Approved by trustees on 5th June 2025. 

The Association’s reserves are available for use in furtherance of the charitable objectives of the Association. They consist of:

• The General fund
• Restricted funds
• Designated funds

Restricted funds are either:

• Set aside for specific projects or purposes in accordance with the instructions or intentions of the donors.
• Contractually committed – e.g. Allocated and formally notified to the intended recipient.

Designated funds are:

• Funds allocated by trustees for specific purposes.
• Funds held by branches and regions, including WRG regional groups.

Where expenditure fulfils the criteria of a restricted fund, it should be charged against that fund, rather than from the General Fund. The Association’s income and expenditure may vary from year to year, because of:

• Changes in the value of its investments
• Variable income from sources such as legacies and donations.
• Fluctuations in membership income.
• Urgent major expenditure on waterway restoration or campaigning
• A need for legal advice or legal action.

The Association should hold sufficient free funds to cover its operating costs for a minimum six and a maximum of twelve months, which would enable it to continue its activities and to manage any financial or operational difficulty that could arise.

Free funds are defined as the General fund less the value of fixed assets (after depreciation).

If circumstances arise where the free funds are not sufficient to cover any liabilities, trustees can remove the designation of designated funds and transfer them to the General fund.

Based on the risk assessments it has carried out, trustees have concluded that IWA’s free funds should lie between £350,000 and £700,000.  Of this amount, a minimum of £150,000 should be liquid and available for immediate use.