The British Red Cross reduced its spending on fundraising by more than a fifth last year, and has predicted a drop in fundraising income as a result.

According to the charity’s annual report and accounts, released recently, the charity reduced spending from £50.2m in 2014 to £39.7m in 2015.

The charity said it had “suspended elements of our fundraising marketing activity in the latter part of the year, pending the outcome of fundraising regulation reviews in the sector”.

It also predicted a drop in fundraising income, but said this was a necessary consequence of a decision to change how supporters viewed it.

“Changes to the way we fundraise and the discontinuation of certain fundraising activities will impact upon our fundraising income in the next few years,” the charity said in its annual report, “but we are confident that by transforming our relationships with supporters we can minimise the impact on our funding model.”

The charity listed fundraising regulation at the top of its risk management framework.

“Failure on our part or on the part of fundraising agencies we work with to comply with the legal and regulatory framework and the speed with which we respond to any allegations of noncompliance could lead to reputational damage and potential fines from regulators.”

Last week the British Red Cross was heavily criticised by the Fundraising Standards Board for its participation in high-volume telephone fundraising with defunct agency GoGen, with whom it had a ten-year relationship.

Earlier this year the chief executive of the British Red Cross, Mike Adamson, promised cuts to fundraising expenditure in an exclusive interview with Civil Society News.

The charity saw a £14.5m increase in fundraised income in the year – an increase of more than 10 per cent to £152.8m.

Income from all other sources was down by £1.2m, although this includes a £4.4m drop in income from disposal of fixed assets.

Total income was £275.1m, compared to £261.8m the previous year.