Action for Children was able to absorb inflationary cost increases by exceeding its fundraising targets, its most recent accounts report.
The charity’s annual accounts for 2022-23 show its total income was £149.8m and expenditure was £149.4m.
Its income increased by £7.2m on the previous year, while expenditure was also up, by £10.1m.
Net gain for the year, before investment and pension valuation movements, was £400,000 (2021-22: £3.2m).
The accounts state: “We carefully managed inflationary increases by reducing some expenditure, and thanks to a surplus in operational activities and fundraising.”
‘Generosity’ in gifts and wills
The charity raised almost £18.6m in voluntary income and performed 15% better than internal targets. The donations and legacies total of £18.6m in 2022-23 compared to £16.2m in 2021-22.
“This was largely driven by the huge generosity of gifts in wills, and our successful Christmas fundraising propelled by the John Lewis partnership,” state the accounts.
Moreover, the Telegraph Christmas Appeal raised £720,000, the second highest amount raised by readers in the last decade, with £120,000 allocated to Action for Children.
The Boycott your Bed fundraising initiative raised over £600,000 and the John Lewis partnership more than £630,000.
The charity’s Christmas appeal, Secret Santa, brought in a record-breaking £1.7m including gift aid.
Legacy income provided £4.6m last year, and the accounts note that across the sector legacies are continuing to experience a high rate of growth.
Action for Children is prioritising legacy marketing and its free will campaigns generated more than £800,000 in online pledged income.
The charity received 56 complaints about its fundraising in the year, with 16 being about the way it acknowledges donations.
‘We prioritise campaigning for change’
In 2022-23 the charity also invested in marketing for its nurseries and childcare “which meant we saw the strongest year for income to date at £15.8m”.
Action for Children’s Crisis Fund first began in March 2020 in response to the coronavirus pandemic, and continues to exist.
In 2022-23 the charity helped 5,743 children through nearly £460,000 worth of grants from the fund. The Enrichment Fund helped 1,736 children, and totalled nearly £95,000.
The accounts state: “The level to which families rely on our services is indicative of the wider problem. That is why we prioritse campaigning for change across the UK, to address rising child poverty and the increasing pressure on already vulnerable families.”
In 2022-23 the charity purchased two new properties in the northeast of England, as part of its plan to open 10 new residential homes in England and Wales.
The accounts note a residential short breaks service for disabled children received a rating of "inadequate" from Ofsted and a temporary suspension notice from 16 March 2023. The suspension was lifted later on in the year.
Living wage employer
The lowest pay at the charity is now aligned with the Living Wage Foundation rate. In April 2022 this saw some of the lowest-paid staff receive more than a 10% pay increase.
The accounts also state: “We are committed to reducing our gender pay gap over the next few years. This is within our target of 5% either side of a 0% gender pay gap.”
The highest-paid member of staff received between £150,000 to £160,000.
The accounts note that pay inflation has impacted market salary levels, increasing the pressure on many charities.
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