Reserves are the balance of unrestricted funds, including designated funds, being held by a PCC. There is guidance on the Parish Resources website about reserves at including some sample reserves policies.
All PCCs should have a reserves policy even if they currently do not have any reserves. The policy will include the level of reserves being held and why they are being held, or the level that the PCC wishes to hold and any steps being taken to achieve that amount.
The policy should be stated in the Annual Report and Accounts each year.
The PCC will also need to decide where and how any reserves will be invested – this will depend in part on why they are being held and when it is envisaged they will be spent.
The PCC cannot restrict funds; funds may only be restricted by the donor; PCCs may designate funds for particular purposes.