Save the Children UK has a reported a drop in its annual income of more than £100m in its latest accounts.
The development charity’s recently published accounts for the year ending December 2018 show that its overall income decreased to £303m from £407m the year before.
Save the Children had predicted its income to fall by about £67m due to it winning fewer long-term contracts that year but the latest accounts show a greater than expected decline.
According to the report, the fall was mainly due to a £103m drop in restricted income funding from institutions, while its fundraising from the general public decreased by £1m.
This drop in institutional funding includes the scaling back of Save the Children’s work in the Horn of Africa, for which it received £49m in 2017 and a reduction in other longer-tem development projects.
After Save the Children was embroiled in a high-profile sexual harassment scandal last year, the charity temporarily withdrew from applying for funding from the Department for International Development (DfID).
In its accounts, the charity estimates this withdrawal from DfID funding reduced its income by £16m in 2018.
The charity says in its accounts that it “did not win enough new income to compensate for” the drop in income.
Similarly, the charity’s expenditure fell to £315m in 2018 from £408m the year before due to a £95m drop in its spending on charitable activities.
The charity spent £319,000 on termination costs in 2018, down slightly from £374,000 the previous year.
Meanwhile, the charity’s average number of full-time equivalent employees reduced slightly to 1,110 from 1,137 the year before.
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