10: Accumulated Funds
Avoid accumulating funds that could be used for current program activities. Other Information:
To meet this standard, the charity's unrestricted net assets available for use should not be more than three times the size
of the past year's expenses or three times the size of the current year's budget, whichever is higher. [Meeting certain public
disclosure requirements described in the Implementation Guide may enable a charity to satisfy this standard.] An organization
that does not meet Standards 8, 9 and/or 10 may provide evidence to demonstrate that its use of funds is reasonable. The higher
fund raising and administrative costs of a newly created organization, donor restrictions on the use of funds, exceptional
bequests, a stigma associated with a cause and environmental or political events beyond an organization's control are among
factors which may result in expenditures that are reasonable although they do not meet the financial measures cited in these
standards.
Indicator(s):
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