The British Heart Foundation (BHF) saw a decrease of 4%, or £5.9m, in its total net income for the year to 31 March 2024 despite attracting more than £100m in legacy donations.
Besides the decrease in total net income, from £144.3 to £138.4m, the charity’s annual report and accounts recorded a fall in its fundraising income, from £51m to £47.7m. Retail net profits dropped from £24.9m to £18.8m amid tough operating conditions.
Fundraising income included donations of £33.7m – an increase from last year’s £29.3m – while volunteer fundraising garnered £7.1m this year, a significant decrease from last year’s £14.6m.
Income from fundraising trading activities was at £6.9m this year, slightly down on last year’s £7.1m.
The foundation recorded a deficit in income over expenditure of £17.8m, before accounting for investment gains, which was a reversal from the previous year’s surplus of £11.2m. BHF said this was down to it channelling £39.5m into healthcare innovation activities, to provide support and information to families impacted by heart and circulatory conditions.
Retail net profit down 24% as costs increase
Current economic conditions have put pressure on income generation, with fundraising and retail trading feeling the tightest squeeze compared with last year, the charity’s annual report states.
But BHF, which operates the largest charity retailer in the UK and the largest eBay charity retailer in the world, has also been affected by cost inflation and saw a 24% decrease in retail net profit.
Its retail trading costs increased ahead of sales growth by 9% to £218.5m from last year’s £200.7m.
The inflationary pressures, including increased energy costs, affected BHF team’s pay and benefits in what its report called a “highly competitive employment market”.
Its direct cost of generating funds, including total fundraising costs and costs of fundraising trading, has gone up by 16%.
As a result, its costs increased by £46.6m, pushing total expenditure to £416.7m compared with last year’s £370.1m.
BHF’s income from other fundraising streams, such as philanthropy, corporate partnerships, events and individual giving, stood at £47.7m. The difference from the previous year’s £51m was attributed to the economic climate, and the benefit of having been the London Marathon’s lead charity during 2022-23.
The charity’s legacy income was, however, a bright spot, increasing by £6.4m to reach £101.4m. This was the second-highest figure on record – and only the second time the income stream had topped £100m – because of an “exceptional number of high-value bequests”.
BHF’s annual report said the legacy income total reflected “the public’s enduring commitment to supporting [the charity’s] vital research endeavours”.
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