The Children’s Society has revealed that it is developing a new strategy to “change our operating model” as it reports a fall in income for the last financial year.

In its recently published annual accounts for 2011/12 the charity reveals that: “The trustees of the Children’s Society have moved towards agreeing a new strategy that includes plans to secure sustainable financial growth to fund our mission targets.”

Details of the new strategy will be announced in early 2013. The accounts say that additional investment in the new strategy will result in the charity reporting a deficit for the next three years which will be paid for out of the general reserves “in recognition of the need to change our operating model to meet current and future challenges”.

The charity saw its overall income fall by 4 per cent from £44.6m in 2010/11 to £42.8m in 2011/12. Expenditure also decreased meaning it still finished the year with an operating surplus of £600,000.

Voluntary fundraising income fell by £1.3m due to reductions in legacy and regular giving and income from local and central government contracts fell by £1.2m. Income from its shops rose by £600,000 and the charity plans to open more branches over the coming year.

A spokesman from the Children’s Society said: “Despite the current economic conditions, we achieved a net operating surplus last year, and we have a very healthy reserve.

“Looking forward, we’re focused on increasing the impact of our work by fighting injustice and harm to transform the lives of the most disadvantaged children and young people in the country.

“To ensure this, we’ll see a small short-term reduction in our reserves, which will help us invest in new strategies. But the medium-term picture is one of secure sustainable financial growth with reserves restored to current levels in the medium term.”

In recent years the Children’s Society has slipped down civilsociety.co.uk’s Charity Index. 2009 was the last year it featured in the Charity 100 Index when it came 100th. After that it has featured in the Charity 250 Index, coming 6th, 13th and 23rd in 2010, 2011 and 2012 respectively.