Investment policy
Investing funds
Funds not immediately required should be transferred into a suitable investment account held in the name of the group.
This is so that scouting can benefit from any interest which can be earned. Remember to ensure that the account is designed for a charity so that unnecessary tax is not paid.
If the sums involved are large or the investment period is likely to be long you should take advice from an authorised financial adviser.
The Financial Services Compensation Scheme (FCSC) offers full compensation up to £85,000 (as of 31/12/2010) for savings held with authorised institutions. This compensation scheme applies to individuals and small businesses including charities.
Investment Policy (Specimen 1)
The group's income and expenditure is very small and as a consequence does not have sufficient funds to invest in longer term investments such as stocks and shares. The group has therefore adopted a low risk strategy to the investment of its funds. All funds are held in cash using only mainstream banks or building societies.
The group executive regularly monitors the levels of bank balances and the interest rates received to ensure the group obtains maximum value and income from its banking arrangements. Occasionally this may involve using an account that requires a period of notice before funds may be withdrawn, before doing so the group executive considers the cash flow requirements.
Investment Policy (Specimen 2)
The group does not have sufficient funds to invest in longer term investments. The group has therefore adopted a risk averse strategy to the investment of its funds. All funds are held in cash using only mainstream banks or building societies.