ORG RESERVE ACCOUNT

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Definitions

1. all monies set aside to untouchable org reserves, which is a weekly 10% of the proportionate sum. Any payroll, sales or other payable taxes such as withholding tax in the U.S. and PAYE in the UK pending payment of the taxes. The untouchable org reserves (10% of the proportionate sum) may be used in time of emergency only. Such emergencies might be physical damage to the org's building for which there's no insurance coverage, or extreme insolvency of an org. (BPL 6 Jul 75 III)

2. the org reserve account is built up by astute GO and FBO guardianship of org funds and by reason of booming the org. It also answers the rule that financial management gathers bit by bit a cushion of cash to fall back on and never falls back on it. However, far more than such reserves go to payment of management bills owing and they may not be built up at the arduous expense or denial of management payments. It can also hold Reserved Payment Account type monies. Monthly accounts summaries should show what portion of the Org Reserve Account reconciled balance is accumulated reserves and what portion is Reserved Payment Account type monies. (BPL 1 Jul 72R)