The RSPCA has played down its income increase from £100.7m in 2011 to £112.4m in 2012, warning that an exceptional number of high-value legacy notifications last year, which may take years to settle, have given a false impression in its accounts.
RSPCA’s latest accounts, for the year ending 31 December 2012, say that financially last year appears to have been more successful for the RSPCA than recent years due to an unusual number of large legacies in 2012.
“Prospective legacies to the RSPCA must be allocated to income in the year in which they are notified to us, rather than the year in which cash is actually received by us,” says the accounts. “This can be often some years later.”
Its accounts also note that in 2012, the RSPCA received a one-off income injection of £6m from the sale of its old Birmingham animal hospital site.
Legacy income is the RSPCA’s biggest voluntary income stream, rising by a quarter from £54.2m in 2011 to £67.7m in 2012. However, non legacy-income saw a decrease of 3.8 per cent from £45.9m in 2011 to £44.2m in 2012.
And, the RSPCA’s accounts note that actual cash gained from legacy income in 2012 was £55.5m – the second lowest in the past six years. “This shows the difficulty of forecasting legacy income and the time difference before accrued income is turned into liquid assets,” its accounts say.
More commercial activity
RSPCA’s accounts also cover its new strategy including broadening its approach away from seeking grants solely from bodies that are specific to animal welfare; and launching new corporate products including RSPCA Mobile and a RSPCA Savings Account provided by Yorkshire Building Society.
The RSPCA will look to increase income generation from commercial activities going forward.
Last year, the RSPCA cut more than 130 jobs, mostly in administration and support roles, citing its increasing staff pension fund deficit as a key reason.
The RSPCA’s accounts advise that its pension deficit has increased by 2.9m in 2012 to £50m. It is developing a recovery plan to address the deficit.
