1. Presented at the 2018 World Service Conference
AREA RESERVE FUND
Today we are going to talk about Area reserve funds starting with….
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Presented at the 2018 World Service Conference

2. Area Reserve Fund Definition Purpose Ample Reserve Excess Funds Fears
Distribution of Proceeds
Oversight
…the definition of reserve funds, the purpose and the difference between an ample reserve versus excess funds.
We will look at our concerns or fears that exist about reducing or tapping into funds in the reserve.
Finally, we will look at the Area’s process for distribution of the reserve fund proceeds and the decision makers that provide oversight.
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3. Reserve Fund
For the purposes of this workshop, reserve fund is defined as any funds equal to six-months-to-a-year’s operating expenses, such as maintaining a significant minimum checking balance, “seed money,” the budget, etc.
*During Panel 52 we chose to create a Reserve Fund equal to the cost of three Area meeting Contracts. We determined that should the Area suffer a catastrophe these contracts would need to be negotiated out in order to minimize public controversy. $10,000 for two Assemblies and $5,000 for AWSC. We have maintained that ample reserve in a Savings account. We used to keep it in CDs but the actual interest is about the same, and a Savings Account is safe and more flexible for our needs.
In addition we determined that the checking balance should remain above the $3,000 mark to avoid bank fees.
So until now, that is what our Area has done, as a group, about the Reserve Fund.
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4. Area Reserve Fund Concept Twelve:
The spiritual foundation for Al‑Anon’s world services is contained in the General Warranties of the Conference, Article 12 of the Charter.
Warranty One:
that only sufficient operating funds, including an ample reserve, be its prudent financial principle.
Whenever we have a conversation about reserve funds it is important to look at Concept Twelve and Warranty One, which states “The spiritual foundation for Al‑Anon’s world services is contained in the General Warranties of the Conference, Article 12 of the Charter.” Warranty One states, “that only sufficient operating funds, including an ample reserve, be its prudent financial principle.”
*So let’s think for a moment about “sufficient operating funds” and “ample reserve” and “prudent financial principle”. … maybe a few people could throw out ideas about how they see these phrases, what they mean to you.
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5. “All the Warranties counsel prudence…”
2018 – 2021 Al-Anon/Alateen Service Manual (P24/27), p. 211
Our Service Manual on page 215 asks the question, “Does the establishment of a Reserve Fund mean that we lack faith in God’s providence?” It goes on to suggest “Are we not expected to exercise a reasonable amount of foresight in the conduct of our affairs? This is certainly no denial of faith in God’s providence; it is instead a willingness to shoulder our own clear responsibility.”
This is prudence. The Service Manual on page 211 states, “For Al-Anon, prudence is a middle ground, a channel between fear on the one hand and recklessness on the other. Prudence creates a climate of harmony, effectiveness and consistent spiritual progress. These Warranties express the wisdom of taking thought for the future based on lessons of the past. They protect us against needless errors and the natural human temptations of wealth, prestige and power.”
Llew – when we work through the Proposed Budget you will see evidence of the Prudence that our Area has exercised over the last few years. Yes, we sometimes overestimate our expenses and underestimate our income. But we believe Prudence includes flexibility and courage, not rigidity and fear.
Cindy – we also continue to learn about the Traditions and Concepts and how we apply them as we work through Area business. There is a balance between planning ahead and one day at a time. Prudence is also trying to keep our financial matters in context – it’s not just a spreadsheet, it’s not just money. Al-Anon’s business is made up of members, working together, for a greater good. It is time, self-care and also careful concern for our finances.
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6. Need: “Why was our Area reserve fund established
Need: “Why was our Area reserve fund established? When was the last time our Area reviewed the purpose?” CINDY will answer this one: Established in Panel 52, set up to have enough money to buy out the hotel contracts for one year of Area meetings. Is this still a valid number? Reason?
The second question is “How has our Area Reserve Fund been used in the past? LLEW – the money stays pretty stable. Sometimes in past years we have had to move some money from the Reserve Fund early in the Fiscal Year until our Convention proceeds came in, just to cover the cost of meetings. We get most of our income during the last quarter of the year. The Reserve Fund amount is replaced as soon as the other income is received.
Third question: Are there any new goals or ideas? LLEW: jot them down
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AMOUNT

7. Now, take a look at the handout labeled “Area Reserve Fund Workshop.
1. “In what ways is our money essentially held in reserve? E.g. savings account, checking account balance, CD, etc.?” LLEW answers this
2. “When does a reserve fund become excessive?” LLEW – ask for one or two volunteer answers aloud, then ask people to write down their thoughts.
3. “Why is having an ample reserve fund considered a prudent financial principle?” Cindy – anyone have a thought about this>
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8. USE Now let’s look at the USE of the *reserve fund?
1. “What are special projects that aren’t covered by normal budgeting?”
2. “How can we approach our Area’s financial needs from a spiritual basis, e.g. stepping away from fear and/or greed, practicing prudence, gratitude, generosity, etc.?” Would someone please share briefly?
3. “In what ways can our Area make better financial choices that are consistent with our primary spiritual purpose, e.g. public outreach, technology, etc.?” Would someone new please share their thoughts?
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9. Management
Finally, let’s look at oversight or Management of our Reserve Fund
“Who has oversight of our reserve fund?” CINDY: We use a Committee organized as a Corporation to manage our Area funds. That allows us to create safe banking procedures. The Area Treasurer serves as the Corporation Treasurer, and oversees the income and expenses. The Board works with the Treasurer. But the Area (through AWSC and Assembly) makes the policy and final decisions. (Concept 1)
2. “What is the process for withdrawing funds?” LLEW – we bank online and can make transfers between the two accounts if needed.
3. “At what point does our reserve fund become excessive thus bordering on perilous wealth?” CINDY – jot down some of your ideas about excess
4. “How does our Area use excess funds beyond an ample reserve?” LLEW – we donate excess monies to WSO, we increase the budgets for Public Outreach and we search for new ways to encourage outreach such as our Spanish Literature Project in Panel 52. We also use monies to have TEAM events, or invite a WSO visitor to share with us at one of our Area meetings. We have increased our budget line item to Convention.
[Stay on this slide. Be prepared to stop the discussion five minutes before end of session. Ask the next question.]
CINDY: Where do we want to go with this conversation?
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10. Thank you for your participation and feedback!
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