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Alcoholics Anonymous Great Britain - Reserves Policy

In the early 1950s in the 7th Tradition, Bill W wrote "Bare running expense plus a prudent reserve would henceforth be the Foundation's financial policy".

Ten years later, the Concepts were adopted which state: 

Concept X11: General Warranties of Conference: Warranty Two: 

"Sufficient operating funds, plus an ample Reserve, should be its prudent financial principle."

Copyright 1962 Alcoholics Anonymous World Services Inc. All rights reserved.

Experience had shown that to maintain services to the Fellowship and to support the work of carrying our message of recovery, there needed to be 'sufficient operating funds' rather than 'bare running expenses' and an 'ample reserve' rather than a 'prudent reserve'.

Based on the above, Alcoholics Anonymous Great Britain's reserve policy is as follows:

Ample Reserve held by the charity should exceed 1 year's expenditure.
Sufficient Operating funds are considered to be one quarter's expenditure.
This gives a total Free Reserve of over 1.25 year's expenditure.
A significant proportion of these reserves are held in stocks & bonds which can fluctuate significantly.

Note: The use of the phrase 'free reserve' reflects the wording used by the Charity's Auditors.

 'Statement from Charity Auditors'

 No Investments are held/managed in Districts that fall under the "Tax Avoidance" or "Politically Unstable" umbrellas.