For this article, we're sharing some of the findings about reserves from the 2nd edition of our Financial & Operating Ratios for Professional Bodies report.
On average, professional bodies saw reserves increase from £5.1M in 2009 to £5.3M in 2010.
We found that organisations in the engineering and other sectors and those with smaller membership bases increased their reserves, while organisations in the business and health sectors and those with larger membership bases, saw them decrease.
The engineering and other sectors seem to have been accumulating their reserves as security for the future, however those in the health sector appear to have used their reserves to support their survival.
Having increased their profit in 2010, organisations in the business sector appear to have used their reserves to expand their business. All other sectors saw their profit decrease in 2010.
Another trend shows that organisations with a smaller membership base appear to have been sitting on their reserves, while those with a larger membership appear to have used their reserves to support their organisational activities.
What approach has your organisation adopted? Have you been accumulating your reserves as security for the future or been using them to invest in business development, or have you had to tap into them to support your survival?
USING THE REPORT
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