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How much should a charity hold in reserves?

There is no rule. Sector guidance often suggests three to twelve months of operating costs, and in F2024 filings the median Canadian operating charity holds cash and investments worth 0.8 yr of program spending. 35% hold under half a year and 14% hold five years or more.

How it is computed

(cash & short-term investments + long-term investments) ÷ annual program spending

(4100 + 4140) ÷ 5000 on the T3010 · self-reported by the charity, not audited by Charity Compass

What the figure includes and leaves out

The T3010 reports cash, bank balances and short-term investments on line 4100 and long-term investments on line 4140. Charity Compass adds them and divides by program spending to estimate how many years of programs current holdings could cover. Liabilities are not subtracted, and restricted or endowed funds are not separated out, because the open data does not distinguish them.

Why big charities often show thin reserves

Hospitals, food banks, relief agencies and other large operating charities move money through: they spend what they raise in the same year. Among Canadian operating charities with $100 million or more in revenue, about half hold under half a year of program spending. A low figure on a large pass-through charity is its model, not a warning.

Why very large reserves deserve a question

A charity holding many years of program spending may be saving for a building, managing an endowment whose income funds programs, or simply accumulating. All three are legitimate and all three are worth reading about in the charity's own annual report before you give.

How Charity Compass uses it

Reserves feed the "need" ingredient in our ranking, 20% by default and 40% if you switch on "Needs money now." Charities with thinner reserves rank higher on that ingredient. The figure, the same-size-band median, and the T3010 lines appear on every profile.

Real examples

Three analyst-rated charities near the 0.8 yr median, from their F2024 filings:

Chosen as the analyst-rated charities with revenue over $1M whose figure sits nearest the median; not a recommendation.

Common questions

Is it bad if a charity has almost no reserves?
Not by itself. Many of Canada's largest charities run on under a month of reserves because they spend what they raise. It does mean a bad year hits programs quickly, which is why reserves are shown next to size on every profile.
Are reserves the same as net assets?
No. Charity Compass reports cash and investments before liabilities. Net assets subtract what the charity owes. The open data does not separate restricted funds, so the figure here is a proxy, not an audited reserve.

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Figures: CRA List of Charities open data, F2024 release, computed across 72,356 operating charities where the lines exist · self-reported by each charity · last reviewed 2026-09-15. Charity Compass is not affiliated with the CRA or Charity Intelligence.