The LGB Alliance has reported a deficit of over £100,000 after seeing its fundraised income drop by more than half, according to recently filed documents.
According to its annual report for the year to 30 November 2023, the charity recorded a net deficit of £105,000 compared with a surplus of £96,500 the year prior.
This was due to the charity’s total income declining to £246,000, around 45% down from the £455,000 it received the year prior, while its expenditure stayed relatively flat at £352,000.
LGB Alliance stated in its accounts that the in-year deficit was “expected due to some donations that were accounted for in the 2022 year being received in order to be applied towards expenditure within the 2023 year”.
At the end of 2022-23, the charity had total reserves of £17,600, compared to £123,000 a year earlier.
In its accounts, the charity said that trustees were “keen to see its reserves grow” but were pleased with its financial performance so far.
Fundraising for legal fees
LGB Alliance received £202,000 in donations and legacies in 2022-23, which was down from around £419,000 in 2021-22.
Its larger total in 2021-22 included £159,000 in grants, of which £9,000 came from the National Lottery to set up the charity’s helpline.
Meanwhile, staff costs were £114,000 in 2022-23, up from £30,700 the year prior, and the charity had two employees.
The charity, which was granted its status in 2021, was embroiled in legal proceedings until mid-2023 and fundraised to cover its costs.
Indeed, last year Mermaids lost its legal challenge to strip LGB Alliance of its charitable status in what was thought to be one of the first tribunals of its kind.
Kate Barker, chief executive of LGB Alliance, said at the time: “Our legal fees amount to more than £250,000, and that money has come from small supporter donations.”
Its legal costs were £120,000 in 2021-22, according to its accounts for that year, compared to £5,600 in 2022-23.
Civil Society has contacted the charity for additional comment.
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