Mental health charity Mind has reported spending 24% more last year, despite a second successive drop in its annual income.
The charity spent £72.5m in the year to March 2023, including a 25% increase in expenditure on its frontline mental health work (£46.3m).
This increase came despite a 19% fall in its income last year to £59.2m, with money from fundraising dropping from £38.1m to £29.2m.
The charity said in its recently published accounts that “significant volatility” in recent years had “impacted both Mind’s income generation and where we focus expenditure to best support those in need”.
Rise in retail income
Mind’s fundraised income from donations, challenge events and legacies all declined in 2022-23.
Grants from trusts, foundations and other non-governmental bodies declined from £10.6m to £3.28m.
Government grants also fell while the charity had received £3.64m from the Covid-19 support fund in 2021-22.
The charity’s income from its charity shops, however increased by £3m to £22.8m.
Aside from its spending on charitable activities, Mind spent £26.2m on raising funds, up from £21.6m the year before.
Its overall staff costs increased from £27.1m to £33.9m as full-time-equivalent employees rose from 759 to 837.
Volatile fundraising environment
The accounts read: “Thanks to the hard work of our internal teams and our brilliant supporters over the last couple of years, we are in a positive position to deliver on our strategy to respond to the growing mental health need.
“The external financial environment has been characterised by significant volatility in recent years and the challenges have impacted both Mind’s income generation and where we focus expenditure to best support those in need.
“Our total income of £59.2 and total expenditure of £72.5m, along with a small loss on investments and the sale of property, resulted in a net deficit for the year of £14.2m.
“The corresponding reduction in reserves – from £52.7 at the beginning of the year to £38.5m at year end – reflects our strategic and planned expenditure on mental health services during the year.”