World Vision UK’s income has bounced back to above pre-pandemic levels, its recently filed documents show.
According to its accounts ending September 2022, World Vision UK’s total income rose from £52.8m in 2020-21 to £69.8m in 2021-22. This is above its 2019-20 income, which sat at £69.6m.
For the first time in 10 years, donations from the public also increased, driven by the Disasters Emergency Committee (DEC) Ukraine appeal.
This helped to offset losses from a cut in government aid funding, the accounts show.
Emergency donations increased by over 400%
Donations for emergencies increased by 449% from £1.8m in 2021 to £9.8m in 2021-22.
World Vision UK received £7.2m from DEC appeals, some 70% of which came from the Ukraine appeal (£5.1m). It received a further £2.6m from its own emergency fundraising.
Legacies also increased from £800,000 to £1.1m, with more people leaving a gift to World Vision in their will and a rise in the average gift size.
Despite an increase in public donations, the charity said it had faced difficulties in gaining new donors due to the cost-of-living crisis.
Cut in government funding
World Vision UK’s accounts cite its rising income as a reflection of its “efforts to diversify our institutional funding for both development and emergency grants.”
Diversifying its income has been a priority for the charity since the government reduced overseas aid to 0.5% of gross national income as opposed to the target of 0.7%, its accounts read.
“This constrains what has historically been our largest source of institutional income,” the accounts read.
Despite this, total grant income to the charity rose by 19% from £18.6m in 2020-21 to £22.3m in 2021-22.
This is still below its institutional total income from 2019-20, which was over £33.2m. Its institutional grant income was £23.4m in 2017-18 and £24.6m in 2018-19 respectively.
World Vision UK’s accounts state it is making efforts to diversify its “institutional income base to address the risk of reduced funding from the FCDO”.
Rise in higher earners at the charity
Expenditure at the charity increased by 26% from £55.9m in 2021 to £66.9m in 2021-22.
The majority of the expenditure was spent on charitable activities (83%) whilst the remaining costs went on raising funds (17%).
Overall employee costs fell slightly to £8.7m in 2021-22 from £9m the previous financial year.
Costs incurred from employee wages and salaries decreased by 3% from £9m to £8.7m in 2021-22.
However, the amount of higher earners at the charity increased. Three more staff were reported to make between £80,000 - £90,000 per annum. A total of nine staff earn above £60,000 a year.
The chief executive officer received the highest remuneration of £100,000 in 2021-22.
Fall in safeguarding reports
The number of safeguarding concerns fell by 76% from 84 cases in 2020-21 to 20 cases in 2021-22.
These reports are raised to the charity through its safeguarding mechanisms like hotlines and whistle-blowing facilities.
The charity cited the fall in reports as being due to the Covid-19 pandemic and the completion of work in some areas, which may have limited some people’s access to their reporting facilities.
During the year the board reported two serious incidents to the Charity Commission that related to safeguarding.
The accounts read: “One incident was substantiated and although the perpetrator had already left World Vision employment their record has been marked ‘do not rehire’. One incident remains open as the investigation is ongoing. There was a small rise in UK concerns, which we see as a positive reaction to our promotion of accountability to all World Vision UK representatives to uphold our behaviour protocols.”
Online advertising costs increased by 200%
World Vision UK online advertising costs increased by as much as 200%. The charity is seeing more competition in the market and a lower response rate from the advertisements, its accounts state.
“In 2023, we’ll be focusing on targeting our digital investment where it will deliver the best returns”, the accounts read.
Competition for talent was another challenge facing the charity, as it experienced higher vacancy levels when recruiting staff.
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