What is the purpose of a Building Reserve Fund?

The purpose of a Building Reserve Fund is to save money for future capital projects. This fund is dedicated to setting aside resources specifically for significant expenses such as construction, renovation, or major upgrades to school facilities. By allocating funds into this reserve, schools can effectively plan for large, capital-intensive projects without the need to rely solely on current operational budgets or seek unexpected funding at the time of need. It serves as a proactive approach to ensure that the necessary financial resources are available for maintaining and improving the physical infrastructure of educational facilities in line with long-term strategic plans.