Insufficient numbers of charities in the north-west of England are unable to explain why they are holding large amounts of money in reserve, the charities watchdog has claimed.
Publishing a report on the finances of charities with an annual income of over £10,000 every year, the Charity Commission (CC) claims that 59 per cent were unable to present a policy explaining why they were holding reserves.
"Charities have never been more under the spotlight and it's key that they are open and account for their reserves," Andrew Hind, CC chief executive, said.
He explained that many charities hold funds in reserve in order to guarantee their survival in the event of a disruption to their services, but warned that they must "get to grips with this issue as part of their plan for long term sustainability".
The CC report found that total charitable funds held without a policy accounting for them across the whole of England and Wales have now reached £3.6 billion, of which £226 million was being held in reserve.