(Approved by the CSLA Board of Directors on November 4th, 2006, modified March 20th, 2013)


To manage the CSLA reserve Fund.


The CSLA Reserve fund is intended to provide a financial cushion in the event of unplanned loss of revenue or extraordinary expense.  


The CSLA will maintain a Reserve Fund of a minimum of $125,000, representing one-third of the CSLA’s Annual operating budget, which will be invested in 5 separate GIC’s with laddered maturity dates.

All interest earned from these investments will be reinvested in the Reserve Fund in order that the fund keeps pace with inflation.


The Executive Director will administer the Reserve Fund and will advise the CSLA Board of the details of these GIC’s through regular Year to date reports.

The reserve fund will be divided into five pieces, each to be invested in a GIC maturing in different years.  Each GIC will thus mature it would be reinvested for a three to five-year term.  The fund can either be used directly or borrowed against.


The presence and size of a reserve fund should be directly related to reasonably foreseeable risks.  In the case of the CSLA/AAPC, revenue comes from annual dues.  The risk would be that for some reason, one or more components might suddenly withdraw or fail to forward dues.  The Society would then be faced with having to continue to pay any outstanding commitments.

The accountant CSLA consulted recommended against investing the reserve fund in anything other than interest-bearing instruments.   These are reserve funds, not growth funds and should not be in equities or other instruments whose values rise and fall.