Acevo has seen income fall by £486,000, posted an operating deficit of £190,000, carried out a staff restructure, and made at least one redundancy, according to its annual accounts.
The charity leaders’ body, which earlier this week announced that Vicky Browning will become its new chief executive in January 2017, has published its annual report and accounts for the year ending March 2016 on its website.
Its income for the year was £1.29m down from £1.78m the previous year. Expenditure was £1.48m compared to £1.82m in the year to March 2015.
Income from trading activity, including sponsorship income, was down by £440,000 and income from charitable activities was down by £24,000.
Total group funds on its balance sheet decreased from £485,000 in 2015 to £295,000 in 2016. Acevo has £277,000 in free reserves, which is above its minimum level of £240,000.
Paul Farmer, chief executive of Mind and chair of Acevo, said in the introduction to the report that: “These have been difficult times for the sector, and Acevo has been challenged too, but our mission has never been more crucial.
“It has never been more difficult to be a sector leader – and Acevo is a point of constant contact, support and encouragement. Our three year strategy ‘Leading the Charge’ makes real key commitments to engage ever more locally, democratically, innovatively and accountably and this will be our task in 2016/17.
“2015/16 was a year of transition but I am confident that we will come to view it as a year of key investment and evolution, where a new and exciting identity or the UK’s leading network for charity and social enterprise leaders began to be formed.”
The accounts were signed off by the chair and treasurer on 26 September.
Staff restructure
The report says that the trustees have taken corrective action to make sure it breaks even in future years, part of which has included a staff restructure.
“To continue supporting members, the board recognises the need for Acevo to at least break even in 2016/17, therefore in late 2015 Acevo took action in the form of a staff restructure and lowering overheads by decreasing the cost of office space,” the report said.
“The trustees are focused on the future strategic and financial planning for Acevo, and have reviewed two-year financial forecasts in order to ensure that the correct decisions for the organisation and our members are being made.
In the introduction Farmer, said: “We have reshaped our senior management team and injected new vigour into our back and front office function. We have spotted what is working well in the organisation and sought to develop it.”
The accounts show it spent £18,350 on “redundancy and termination costs” and that the overall full-time equivalent headcount has fallen from 22 to 21.
Acevo would not say how many people have been made redundant.
Its director of finance, Jessica Spearman, left in May 2016 and its director of member services, Jennifer Finn left in February 2016.
It has since appointed a chief operating officer, Lew Hodges.
Membership drops
Last year Acevo reported a rise in its membership for the first time in six years, to 1,420.
This year it dropped to 1,398, but is still above the figure for 2014 when it was 1,382.
Income from membership was stable.
Acevo said it had a membership retention rate of 72 per cent, compared to 75 per cent the previous year. It attracted an average of 27 new members per month.
Acevo also said 32 of its members contacted its CEO in crisis helpline.
This week Acevo announced a new project with the London Leadership Strategy and will encourage headteachers and leaders of academy schools to become members.
Low Commission funding
The accounts also reveal that Acevo received £17,000 in restricted funding for its Low Commission into the regulatory environment for charities.
It says that £1,000 has been deferred at the end of March “as the final report has not yet been launched”.
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