Housing and crime reduction charity Nacro shed 90 staff and saw its income fall by £5.5m over the year to March 2015, its latest set of accounts reveal.
Staff numbers dropped from 790 to 700 and income fell from £47.3m to £41.8m.
Much of the decline in income was due to a reduction in local authority income for housing related support, a spokeswoman for Nacro told Civil Society News.
As a result, social housing income fell over the year from £10.2m to £9.9m, despite an increase in its number of properties.
A statement in the charity’s annual report said the year ending 31 March 2015 was “a very difficult financial environment for all charities” due to reduced government funding.
The charity paid out £288,000 in redundancy payments.
A spokeswoman for Nacro said the charity was forced to "reduce central costs in line with the reduction in income", leading to "some redundancies".
Redundancies also occured from the "closure of loss making centres and projects to ensure financial viability in accordance with our business plan," she told Civil Society News.
But a statement in the annual report said Nacro was “successful in retaining a large proportion of its existing business against a backdrop of ongoing public sector funding reductions”.
This was achieved by offering “reconfigured services” to commissioners and delivering “efficiency savings through the implementation of a ‘value for money strategy’,” the report said.
The charity saw a reduction of income across the board from non-social housing activities, including education provision, offender management contracts, substance misuse contracts and corporate projects. Their income fell from £26.5m to £22.6m over the year.
A total of 13 staff earned a salary of more than £60,000, with the highest earner taking home a salary of between £130,000 and £140,000. Last year’s highest earner received a salary of between £100,000 and £120,000. The difference reflects a change of leadership in May last year, with Jacob Tas taking up the position of chief executive.
Despite facing financial difficulties, Nacro entered Civil Society News’s top 100 charity index in April this year.
