For finance directors and trustees: how much currency risk the charity is carrying, what a policy should say about it, and how to report it to a board. [CONFIRM Q1–Q3]
In detail
[DRAFT] Not approved for publication. This page describes work Audere does for funds and corporates and proposes to offer charities. Every statement below needs compliance sign-off. [CONFIRM Q1–Q3]
Why a charity carries currency risk
A grant is awarded in one currency and spent in another. A budget is set in one month and paid out across the year. Between the two the rate moves, and the programme receives more or less than the budget said it would. [CONFIRM Q1–Q3]
A currency policy
A short written policy says what the charity will and will not do about that movement: which exposures are managed, over what horizon, with which instruments, and who signs each decision. It is the document a trustee board can hold a finance team to. [CONFIRM Q1–Q3]
Reserves
Reserves held in one currency and committed in another carry the same exposure. We set out what is at risk, over what period, and what each option costs. [CONFIRM Q1–Q3]
Reporting
Trustees need one page, not a market commentary: exposure by currency, what has been managed, what it cost, and what has changed since the last meeting. [CONFIRM Q1–Q3]
Who this is for
Finance directors, heads of finance and trustee finance committees at charities that hold or commit money in more than one currency. [CONFIRM Q1–Q3]
How we work
The analysis is the one Audere runs for funds and corporates, applied to a charity's numbers. The advice is independent: we do not execute payments, and we are not paid on the outcome. [CONFIRM Q1–Q3] [CONFIRM Q4]
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