UK – [26 June 2025] – Cartwright Charitable Trusts, specialists in building financial resilience for small to medium sized trusts, today urged charity trustees to reconsider the role of cash in their investment strategies, warning that excessive cash holdings could undermine both the long-term impact and the financial sustainability of their charities.
Martin Mercer, Senior Investment Consultant at Cartwright Charitable Trusts commented: “In a challenging climate with inflation, market volatility and rising demand for services, charities face pressure to make their assets work harder. Too many charities are holding cash, often out of caution, or simply because they’re unsure what else to do. This may feel secure however it could leave them exposed, limiting their ability to meet future obligations and deliver lasting value. There’s a longstanding view that cash is ‘safe’, but in today’s environment, particularly with rising inflation, that assumption needs to be challenged. Trustees need to consider whether large cash reserves are really serving them or simply eroding in value.”
Mercer added: “This is not about abandoning caution or accepting undue risk. Rather, trustees should be empowered to ask the right questions and consider whether there are more effective strategies for managing their assets in alignment with their long-term objectives. Even small shifts in approach can make a meaningful difference over time.”
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