Oxfam has reported a net deficit of £28.4m after its income declined by more than £30m last year and its expenditure increased.
The international aid organisation’s accounts for the year to 31 March 2024 show its income dropped by £31.6m to £368m while its expenditure increased by £36m to £396m.
Oxfam’s drop in income was driven by the absence of large fundraising appeals run by the Disasters Emergency Committee, like those for the Turkiye-Syria earthquake and Pakistan floods in 2022-23.
Meanwhile, it recorded a 5% decrease in unrestricted donations and legacies, which dropped to £65.2m this year.
As a result of the deficit it recorded, Oxfam’s general reserves fell to £32.9m, below its £35m to £45m target.
Oxfam announced a raft of cost-cutting measures last week, which included a recruitment freeze, travel restrictions and limiting its use of external consultancies.
Investment in raising funds
Oxfam’s retail activities, including high street shops, generated £103m in 2023-24, up from £98.0m the year before, with strong growth in women’s fashion and online sales.
However, its trading costs also increased by £11.6m, which meant its net retail income decreased from £16.0m to £9.2m.
This came in a year when the organisation opened up its second UK superstore in Manchester, and announced plans to open a further 10 such stores over the next five years.
Oxfam’s charitable expenditure also increased by £18.9m to £272m, with a focus on “flexible funding” to shift power to local partners in the Global South.
Some £127,000 was paid to Oxfam’s chief executive in 2023-34, although this was split between former CEO Danny Sriskandarajah and his interim replacement Aleema Shivji.
Past year has been ‘extremely difficult’
Despite the decline in income, Oxfam reported that its work reached 11 million people, an increase of 1.2 million on the previous year.
New CEO Halima Begum, who joined in April, said: “The past year has been extremely difficult with the world facing the triple threats of conflict, climate change and the cost-of-living crisis.
“We are facing a very challenging fundraising environment compounded by the sustained burden of rising costs.
“However, it is incredibly heartening to see so many of our donors continue providing their invaluable support to Oxfam.
“Equally, our retail network continues to attract shoppers both on the high street and online, particularly with the growing interest in buying pre-loved items including clothes and books.
“We’ve made significant investments in our shops this year to help sustain our life-saving and life-changing work with communities and partners around the world.”
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