Share

NCVO's income plunged by a quarter last year, accounts show

Sir Stuart Etherington, CEO of NCVO
News

NCVO's income plunged by a quarter last year, accounts show1

Finance | Tania Mason | 2 Nov 2012

The NCVO lost around a third of its staff in the 2011/12 financial year, as its income plummeted by 27 per cent to just under £7.4m.

The umbrella body’s annual report and accounts, just published, state that the year was one of “significant upheaval” for NCVO, and that the year ahead will continue to be challenging.

Most of the income reduction was the result of the cut to the Office for Civil Society strategic grant, which fell from £1.09m to £500,000, and the loss of other statutory funding for national support services.

Income from trading, which included venue hire, commercial fees, publications and brokered services, fell by 1 per cent to £1.7m. Voluntary income dropped just slightly to £1.147m as the annual stipend from Charities Aid Foundation increased from £1.08m to £1.1m but other donations fell from £60,000 to £36,000.

Member subscriptions dropped slightly to £961,000 as the organisation finished the year with 8,231 members, 144 less than the year before.

The NCVO said it had “radically changed the way we operate” in response to the budget cuts.  It introduced a much leaner staffing structure, as average employee numbers fell from 115 to 88 and staff costs reduced by 25 per cent to £4.29m.  It merged with the Third Sector European Network and with Know How Non-Profit. It built a 4,200 sq ft fourth floor on top of its King’s Cross headquarters to create a sector hub, and it began preparations for a merger with Volunteering England, which is expected to be complete by the end of this year.

Director pay and expenses

The NCVO’s three highest-paid executives did not take a pay rise during the year.  And the organisation clamped down on expenses too: expenses claimed by chief executive Sir Stuart Etherington’s office fell from £23,884 in 2011 to £17,599, while the total expenses claimed by all the directors reduced from £35,851 to £28,092.   Trustees were even more frugal: after claiming £17,590 in 2011, their expenses shrank to just £6,501 in 2012.

The NCVO’s defined benefit pension scheme was closed to future accrual on 31 March 2011, following an actuarial valuation in September 2010 showed a projected deficit of £4.4m.  A deficit recovery plan was agreed with the Pensions Trust to eliminate the deficit by December 2023.

The organisation finished the financial year with “readily realisable” reserves of £2.038m, a fall from the previous year’s £2.451m.

An NCVO spokesman said: "We are optimistic about the year ahead, with a number of new projects starting both during the 2011/12 accounting period and since.

"The accounts show income from memberships was down as membership numbers fell slightly over the 2011/12 accounting period, but growth later in 2012 means that we today have more members than at the end of 2011 (8,672 compared to 8,375 at the end of 2010/11)."

Ged Simpson
Funding Adviser
Liverpool CVS
2 Nov 2012

From top to bottom, grant reduction has a massive impact regardless how much we try and become shiny social enterprises.

NCVO are an excellent org and I hope they remain so and continue to support (not duplicate) local infrastructure providers.

We wish you better fortune.

Comments

[Cancel] | Reply to:

Close »

Community Standards

The civilsociety.co.uk community and comments board is intended as a platform for informed and civilised debate.

We hope to encourage a broad range of views, however, there are standards that we expect commentators to uphold. We reserve the right to delete or amend any comments that do not adhere to these standards.

We welcome:

  • Robust but respectful debate
  • Strongly held opinions
  • Intelligent relevant discussion
  • The sharing of relevant experiences
  • New participants

We will not publish:

  • Rude, threatening, offensive, obscene or abusive language, or links to such material
  • Links to commercial organisations or spam postings. The comments board is not an advertising platform
  • The posting of contact details for yourself or others
  • Comments intended for malicious purpose or mindless abuse
  • Comments purporting to be from another person or organisation under false pretences
  • Gratuitous criticism, commentary or self-promotion
  • Any material which breaches copyright or privacy laws, or could be considered libellous
  • The use of the comments board for the pursuit or extension of personal disputes

Be aware:

  • Views expressed on the comments board are left at users’ discretion and are in no way views held or supported by Civil Society Media
  • Comments left by others may not be accurate, do not rely on them as fact
  • You may be misunderstood - sarcasm and humour can easily be taken out of context, try to be clear

Please:

  • Enjoy the opportunity to express your opinion and respect the right of others to express theirs
  • Confine your remarks to issues rather than personalities

Together we can keep our community a polite, respectful and intelligent platform for discussion.

Free eNews

No evidence of criminality at Tower Hamlets, say police

17 Apr 2014

The Metropolitan Police has said that there is “no credible evidence of criminality” following an...

Donations double in one day following Marathon runner’s death

16 Apr 2014

The amount donated to the National Osteoporosis Society, the charity 42-year-old Robert Berry was running...

Sector 'extraordinarily disconnected' from public, CFG chair says

15 Apr 2014

Charities are becoming “extraordinarily disconnected” from donors and supporters who do not understand...

Paula Sussex to be the next Charity Commission chief executive

17 Apr 2014

Paula Sussex, senior vice president, public sector of CGI, has been appointed the new chief executive...

Impact of welfare reforms felt by 95 per cent of Yorkshire charities

17 Apr 2014

A report published today which looks at the impact of welfare reforms in the region of Yorkshire and Humber...

Trussell Trust sees use of its foodbanks 'almost triple' in a year

16 Apr 2014

The number of people using the Trussell Trust’s foodbanks rose from 347,000 to 913,000 in a single year,...

'Technology can offer charities more than just online donations'

10 Apr 2014

Charities are focusing too much on using digital tools for fundraising instead of how technology can be...

Amnesty calls for 'full and frank disclosure' on alleged US surveillance

9 Apr 2014

Amnesty International has warned that alleged mass surveillance by the American intelligence agency NSA...

Virgin Money Giving launches app following year of growth

1 Apr 2014

Virgin Money Giving has launched an app for users after reporting that 30 per cent of traffic to its platform...

Join the discussion

 Twitter button

@CSFinance