Income at the Alzheimer’s Society passes £100m for the first time

The charity was helped by a 12 per cent year-on-year rise in voluntary income, which was up to £65.8m

Annual income at the Alzheimer’s Society’s passed £100m for the first time last year due, the charity’s latest accounts show.

Its accounts for the year to 31 March 2017, which were published on the Companies House website yesterday, show an income of £103.6m, compared with £97.9m the previous year.

This was helped by a 12 per cent increase in the charity’s voluntary income, which rose from to £65.8m from £58.7m during the previous year.

The increase follows a rebrand by the charity earlier this year, which saw the introduction of a new logo in the style of a forget-me-not flower in an effort to make the charity’s branding seem warmer and more accessible.

The accounts show that the charity spent £109.5m in 2016/17, with research expenditure going above £10m for the first time and fundraising spending rising from £16.4m to £20.5m, which was down to extra investment as part of the charity’s expansion strategy.

The accounts also show total reserves fell from £36.1m to £35m, of which £26.1m was unrestricted. The charity says in the accounts that the fall in reserves “was conscious and controlled as we invest for future growth and innovation”.

The highest earner at the charity received between £150,001 to £160,000, the accounts show. This was paid to a long-standing staff member who was given a severance package during the year. 

A statement from the society said: “The top income paid to an individual fits into the £150,000 to £160,000 salary bracket. This includes the full annual salary and severance package paid to an individual, long-standing member of staff.

“Packages like these are entirely exceptional. They are only ever made in agreement with our board and subject to evidence that demonstrates the severance package is in the best interests of Alzheimer’s Society’s charitable purpose.”

The accounts show that the charity paid redundancy costs of £389,000, compared with £104,000 the previous year.

The accounts show that Alzheimer’s Society trebled its research funding portfolio to £30.5m – its highest level – including the creation of three centres of excellence in care and prevention research.

Of the research funding from the charity, £9.2m worth of grants were handed out to new research, the accounts show.

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Legacy income ‘could grow by 2.7% a year for next five years’

But the charity legacy consortium Legacy Foresight says the rate of growth could vary depending on the Brexit deal

Charity legacy income could grow by up to 2.7 per cent a year over the next five years, Legacy Foresight has predicted, but the charity legacy consortium said growth could vary, depending on the strength of the Brexit deal.

Legacy Foresight’s latest market forecasts show that legacy income across the sector will grow from the current level of £2.82bn to £3.26bn in 2021.

This would represent an increase of 2.7 per cent a year, but would be less than 1 per cent a year after taking inflation into account.

But the consortium acknowledged that this was only one of a range of possible outcomes for legacies depending on the impact of Brexit. The most optimistic forecast suggests a 4.2 per cent annual market growth, but the most pessimistic prediction would see a growth of just 0.9 per cent.

This means a poor Brexit deal could result in legacy income being £500m lower in 2021 than it would be in a scenario where Britain negotiates a favourable deal, according to Legacy Foresight.

And the most optimistic prediction is lower than the average growth rate of 6.5 per cent a year in the five years leading up to the Brexit referendum.

But even the most pessimistic prediction meant legacy income would still be more than 5 per cent higher than it was last year, Legacy Foresight said.

Chris Farmelo, director of Legacy Foresight, said “The good news is that we do not expect to see a return to the situation after the global financial crisis in 2008, when sector incomes fell and then stagnated. In fact, the number of bequests received by UK charities is predicted to rise over the coming years, due to the climbing death rate.

“However, the value of those bequests will grow much more slowly than of late, due to the uncertain economic situation.”

Farmelo said the average bequest, currently worth about £46,600, would grow by just 1.3 per cent between 2017 and 2021, compared with 2.8 per cent in the preceding five years.

Chris Millward, chief executive of the Institute of Legacy Management, said the projected figures were “extremely interesting” given the level of confusion about what Britain’s exit from the EU might mean.

“While we hope that the central and optimistic forecasts for future legacies are closer to the truth, we are wary of the potential drop in legacy income, which will, of course, have a negative effect on our charity members and the good causes they support,” he said.

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Shaw Trust increases income to £132m

The accounts for the year to 31 March, which show a rise from £103m, say the improvement can be attributed to assets acquired from the purchase of three new schools, and the money cannot be spent

Income at the employment and skills charity the Shaw Trust increased from £103m to £132m in the financial year ending 31 March 2017.

But the increase, which is revealed in accounts published at Companies House last week, occurred mainly because of the value of assets acquired from the purchase of three new schools, and cannot be spent.

The Shaw Education Trust, which is sponsored by the Shaw Trust, now owns eight schools, which help disadvantaged pupils.

According to the accounts, underlying economic conditions are “challenging”, mainly because of the ending of contracts from the government’s welfare-to-work programmes.

“Economic conditions in the main UK market continue to be challenging, with a further reduction in clients referred to the main welfare-to-work programme, which has resulted in an overall fall in incoming resources from charitable activities,” the accounts say.

“Referrals to the Work Programme ended in March, but the trust secured extensions to its Work Choice contracts until September 2017. It also secured a one-year contract with the Scottish government to deliver its Work First Scotland employability programme.”

The accounts describe the ending of Work Choice and the Work Programme as the trust’s “main risk”.

It is attempting to diversify income in response to this and, in June, acquired the employment and skills not-for-profit Ixion Holdings from Anglia Ruskin University. The Scottish social enterprise Forth Sector became a subsidiary of the trust in January.

The accounts reveal that the number of staff at the Wiltshire-based trust increased from 1,597 to 1,814 and the number of employees earning more than £60,000 increased from 46 to 56. The document says this “is substantially due to the conversion of three new schools into Shaw Education Trust during 2016-17”.

The highest salary paid during the year was in the £170,000 to £180,000 pay band. The recipient of this money is not identified in the accounts. 

The trust’s investments portfolio, which fell in value by £0.7m in the previous year, grew by £2.7m.

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British Red Cross’s income falls by more than £23m

British Red Cross has seen its total income fall by £23.4m, including a £15.7m reduction in donations, the charity’s latest accounts show.

The accounts, which cover the year to 31 December 2016, show that total income at BRC fell by £23.4m to £251.7m.

This is in part due to a £15.7m reduction in donations to £104.5m, a figure that includes a £4.9m reduction in donations from regular givers to a total of £47.7m, the accounts show.

The charity also spent £3.2m on redundancy costs, compared with £800,000 in 2015. The accounts say this was due to changes in the way it organises and delivers services in the UK.

The charity said last year that its restructure could see more than 100 jobs lost but it hoped to save £10m a year.

Grant income fell by £10.2m to £23.3m, which reflected a £10.3m cut in funding from the Department for International Development, according to the accounts.

The accounts say this was due to a reduction in large-scale emergencies abroad.

Expenditure at the charity fell by £23.1m to £236.6m, including a £17.5m reduction in spending on international activities to an overall £59.2m.

Overall spending on charitable activities fell from £195m to £181.7m, and there was a £10.3m reduction in fundraising costs.

The accounts say that the charity expects reforms to fundraising in the charity sector to impact on its fundraising income in the next few years, but also say that the charity is “confident” it will accommodate those changes.

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The charity’s fundraising director, Mark Astarita, announced last month that he will join the consultancy Aldrich & Ward in November.

The charity also suspended part of its fundraising marketing activity at the start of 2016 “to ensure our fundraising practices complied with revised regulatory requirements”.

The accounts also say: “In addition, the markets for certain other fundraising activities, such as face-to-face fundraising, were subdued during the year. This meant our income and opportunities to invest fell in the year compared with 2015. We expect these operating circumstances to continue for the medium term.”

David Bernstein, chair of British Red Cross, said in his introduction to the accounts: “We continued to modernise our organisation in 2016. As part of this programme, we are reshaping our work in the UK.

“The aim is to create a more effective and efficient organisation so our teams can deliver better services and respond to the myriad of challenges that come their way. We cannot stand still. We need to move forward and change with the times.”

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Legacy income falls despite rising death rate

The legacy consortium Legacy Foresight says the value of estates has fallen following the Brexit referendum

The value of legacy income has fallen slightly in the year to 1 June 2017, but the number of bequests received has risen due to climbing death rates, Legacy Foresight has said.

Figures released by the charity legacy consortium Legacy Foresight in its Legacy Bulletin show that its 83 members’ legacy incomes fell by 1.1 per cent on the same period the year before, to £1.41bn.

But, it said, rising death rates had boosted the number of legacies being received and the total figure rose 3.2 per cent to 54,500 in the 12 months to 1 June compared to the year before.

The Legacy Bulletin said income from bequests had grown strongly in the first half of 2016, but had flattened off since the summer – when the vote on leaving the European Union was held.

Legacy Foresight’s bulletin for the first quarter of 2017, published in May, also warned uncertainty following Brexit was impacting on the amount charities recived from wills.

Part of the problem, the latest bulletin said, was that the value of residual bequests – where people leave specific amounts of their estate to people in their lives and then whatever is left goes to charity – had fallen.

“Flagging house prices and jittery stock markets appear to have affected average residual values,” the bulletin said.

“In the year to June 2017 average residual bequest values were £57,000; that’s a fall of 3.7 per cent on the record high of £59,100 in the year to June 2016 (the period leading up to the Brexit referendum).”

It said that if the economy followed expectations and slowed further over the next two or three years as the full details of the Brexit negotiations were developed and realised, this would further dampen the value of residual bequests.

Ultimately, it said, Legacy Foresight’s central market forecast suggests that legacy incomes will grow by 2.7 per cent a year over the next five years, which it said was “considerably slower than in recent years, but growth nonetheless”.

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Macmillan Cancer Support’s income rises by £17m to reach record high

The charity’s accounts for 2016 also show that income from legacies increased by 20 per cent

Macmillan Cancer Support’s income rose by approximately £17m to reach a record high of £247m in 2016, its latest accounts show.

The charity’s accounts, which were released last week and cover the year to 31 December 2016, showed income grew by 7 per cent to hit £247m, compared with £230m the previous year.

The charity’s spending also increased by more than £5m from £240.5m to £245.6m in 2016.

Income from legacies also rose by more than £13m, up 20 per cent from £63.9m in 2015 to £76.8m in 2016.

The accounts say that it expects that £35m of the legacy income accrued will be received within the next year.

Overall income from donations, excluding legacies, also increased from £151.1m to £156.5m, according to the accounts.

This meant that the charity had a surplus for the year of £6.2m, and cited a “very strong income performance in the latter part of the year” as a key reason for its record income.

MacMillan’s total funds also rose from £58.1m to £64.3m in the latest accounts.

The charity’s chief executive, Lynda Thomas, saw her income rise from within the £160,001 to £170,000 wage bracket to between £170,001 and £180,000, the accounts show.

Total earnings for Macmillan’s executive team, including pensions, benefits and termination payments, were almost £1.3m compared with £929,000 the previous year. 

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Big Lottery Fund income down by £60m last year

The figure, shown in its accounts for the year to 31 March, reflects a cut of £120m in the amount received from the National Lottery

The Big Lottery Fund’s overall income fell by about £60m last year after a £120m decrease in the amount of money it received from the National Lottery, its latest accounts show.

According to the BLF’s annual report and accounts for the year to 31 March 2017, published yesterday, overall income fell from £820.2m the previous year to £762.1m.

This came after a near £120m fall in proceeds from the National Lottery, which declined from £769.3m in 2015/16 to less than £652m last year.

But the BLF also received £94.5m in dormant bank account money from the Reclaim Fund, a significant increase on the £37.2m it received the year before, the accounts show.

Last month, figures from the Gambling Commission showed that the total amount of money given to the National Lottery Distribution Fund in the 2016/17 financial year was £1.63bn, a fall of 15 per cent on the £1.93bn handed over in 2015/16.

A statement at the time by Camelot, the company that runs the National Lottery, said the value of ticket sales in 2016/17 had fallen from a record of £7.6bn to £6.9bn.

Camelot said it had launched a strategic review to work out how to boost player interest.

The BLF accounts also show that its grant expenditure increased from £593.4m to £717.4m, with total expenditure increasing from £715.5m to £876.3m.

This means there is a £114.3m gap between the BLF’s income and expenditure for the 2016/17 financial year.

In a statement, a BLF spokeswoman said: “Last year, we awarded £712.7m and supported 13,814 projects in communities across the UK. In the past decade we have seen fluctuations in income and yet have awarded more than £8.5bn to people who have great ideas to support their communities and help them to thrive. 

“In addition to National Lottery revenue, our income includes funding we distribute on behalf of third parties and dormant accounts. These can vary and we anticipate awarding more than half a billion pounds to support people and communities across the UK next year.”

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