Report of the Trustees 2005/2006: Page Six
Fundraising
A budgeting process was adopted for 2005/06 based on 'core' and 'stretch' fundraised income targets – to ensure effective management of risk. Expenditure plans were predicated on achievement of the lower, core target. Further developments could then be undertaken if the core target was exceeded.
The core fundraised income target (including conference and Gift Aid income, but excluding investment income and interest) for the year was £2,958,000, with a stretch target of £3,748,000. Against these targets, an actual outcome of £3,727,000 was achieved – 99% of the stretch target. Of this, 'hard cash' of £3,378,000 was raised, together with a further £349,000 in donated services.
The overall fundraised income of £3,727,000 increased by 21% compared with the previous year's figure of £3,091,000. Fundraising costs (costs of generating voluntary income and of goods sold) increased by just 2% in the year however, from £1,049,000 to £1,069,000.
A new, rigorous five-year Fundraising Plan was approved by the Charity's Board during the year, setting out a programme to increase income to a minimum of £8 million per annum by 2010/11, through a prudent mix of high return donations and sustainable sources – ensuring a Return on Investment by the end of the period of at least 4:1. In line with this Plan, further investment will take place in the Fundraising function during the coming year to enable the Charity to continue building its income.
Community fundraising
Direct marketing
Trusts
Corporates
Legacies
Major gifts
Donated services
Gift aid
Community fundraising
Income grew by 74% from £533,000 to £927,000. Included in this figure is a magnificent total of over £200,000 raised by David Hillier through participation in the New York Five Boroughs Bike Ride. The Charity's events portfolio overall has continued to grow, both within the UK and internationally and the Flora London Marathon is a particularly significant and increasing area of participation. Affinity groups form an important target for development work and partnerships with Rotary Clubs, in particular, are growing strongly. We have also seen growth overall in local fundraising, prompted by increasing awareness of the Charity.
Direct marketing
Income for the year increased by 40% from £642,000 to £898,000. Increased sophistication in targeting of appeals was a key factor in this strong performance. Approximately 800 new major donors were recruited during the year, whose overall average donation was £400. Newly acquired donors accounted for £330,000 income, existing donors bought in £414,000 in cash donations and committed givers generated £154,000.
Trusts
Income decreased by 33% from £588,000 to £396,000. This decline was due to the absence for a number of months of a senior Trusts Fundraising Manager, cessation of funding for the current specialist prostate cancer nurse programme and a cyclical dip in income often experienced by charities with trusts income at this stage of development. With a new, experienced manager in post and a number of new projects for the coming year, we expect that this will be a temporary decline in trust support.
A number of significant grants were received during the year, including £100,000 from Mike Gooley's Trailfinders Charity – the third tranche of a five-year total commitment of £500,000 in support of the Charity's current medical research programme at Hammersmith Hospital. Additionally, we received £20,000 from the Peacock Charitable Trust and a pledge for three years from the Worshipful Company of Innholders towards a Helpline Nurse. Notification was also received of a grant of £153,000 over three years from the Big Lottery Fund to fund a Development Manager in the west of Scotland.
Corporates
Income classified in the 2005/06 accounts as 'corporate' grew by just 4% from £114,000 to £118,000. Additionally, shown under activities for generating funds, significant support was also received through grants and sponsorship from a number of pharmaceutical companies including Novartis, sanofi-aventis, AstraZeneca and Oncura – enabling the Charity to extend its work in the wider prostate cancer community, particularly through the annual National Prostate Cancer Conference. Donated services to the value of £43,000 were also received in the form of livery on a forty foot trailer supplied by Ford Motor Company, Smartbox pub and club television and StreetBroadcast lamp post advertising, all featuring the Charity's 'Real Man' advertising campaign (reported under donated goods and services).
Other major corporate supporters included Snap-on Tools who, as part of their on-going adoption of the Charity, raised £35,000 through their franchise business, Barclays Capital who nominated the Charity as recipients of their annual staff quiz night (raising over £10,000) and Standard Life who covered the costs of production of 600,000 drinks mats for Awareness Week 2006 (at a cost of £7,000).
It is expected that significant work undertaken during the year with potential retail partners will begin to bear fruit in 2006/07. This will be a particularly important area for future income generation and profile-raising.
Legacies
Income increased by 23% from £392,000 to £482,000. A new appointment was made during the year of Development Manager with specific responsibility for legacy and major donor development. This will enable attention to be properly focused on these areas of fundraising, including the running of targeted legacy marketing campaigns.
Major gifts
Major gift income was just £17,000, down from £333,000 the previous year. The earlier high figure had been largely due to a very generous donation of shares by a single individual. As mentioned under the legacies heading, the appointment of a Development Manager will enable effort to be focused on the creation of relationships with potential major donors, creating a greater sustained contribution from this source.
Donated services
In October 2005, the Charity launched simultaneously its new brand and its new, 'Real Man,' marketing campaign, designed to engage the public more powerfully. The creative development of the re-brand and the campaign were undertaken on an entirely pro bono basis by the advertising company, Publicis. Significant pro bono advertising opportunities have taken place following the launch. The value of the creative development undertaken so generously by Publicis, together with the pro bono advertising, represented £349,000 in donated services – 9% of total income.
Gift aid
Gift Aid of £277,000 was recovered on charitable donations, up 19% on the previous year. Continuing efforts will be made to secure maximum contributions from this route in the future.
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