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Reserves Policy

In the early 1950s Bill W wrote ‘Bare running expense plus a prudent reserve would henceforth be the Foundation’s financial policy’.

This was later reiterated and expanded upon in the Concepts.
Concept 12 Warranty 2:

‘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 for the General Service Board, as opposed to the Groups, to maintain services to the Fellowship and support our primary purpose there needed to be ‘sufficient operating funds’ rather than ‘bare running expenses’ and an ‘ample reserve’ rather than a ‘prudent reserve’.

The General Service Board of Alcoholics Anonymous Great Britain Ltd. reserve policy is therefore as follows:

  • The Ample Reserve should exceed 1 year’s expenditure: normally that of the previous accounting year.
  • Sufficient Operating funds are equal to one quarter’s expenditure.
  • This gives total Free Reserves of over 1.25 year’s expenditure, a significant proportion held in stocks & bonds which will fluctuate over the year.

Note: ‘free reserve’ is 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’.