annual report and accounts 2012 - RSPB

RSPB trustees’ report and accounts 2011-12
RSPB accounts in context
RSPB accounts in context
The Operating statement has been prepared to
assist readers gain an overview of the RSPB’s
financial position.
Net income available for charitable purposes:
Net income (money available for charitable
purposes), at £89.3 million, was slightly down on
the previous year.
Grant income was lower because, in 2011, we
received £1.2million shortly before year-end that
was earmarked by the donor for the restoration of
Bowers Marsh in Essex. Had we received it a
couple of weeks later, grant income would have
been stable over the two years. Membership
subscriptions and donations include tax recovery
under the Gift Aid scheme which fell by around
£0.7 million due to the end of the “transition relief”
which was introduced by the Government to
cushion the impact of reducing the basic rate of
income tax from 22% to 20% in 2008.
The continued backing we receive from our
members and supporters means that the
underlying income trend was stable in spite of
challenging times.
Net income is shown after deducting the £17.9
million cost of generating income and a further
£12.5 million cost of goods for resale by our trading
operation. The majority of products sold, such as
bird food and feeders, optics, wildlife books and
videos, relate directly to our charitable objectives.
The cost of generating income increased due to
inflationary pressure in a number of areas such as
printing and postage costs. We also invested in
future income growth; by bringing our processes
up to date and promoting the opportunity for
supporters to upgrade their annual subscription to
a monthly amount of their choice.
Expenditure on charitable purposes:
Expenditure on land purchases and associated
visitor facilities increased by £1 million from a
comparatively low base in 2010. The availability of
grants and the high price of land continue to
constrain our aspirations.
leaves 90% of our resources available to be spent
directly on delivering our conservation objectives.
Net operating income and financial reserves
The RSPB is committed to putting its income to
work as soon as possible. The £3.6 million surplus
has been earmarked for projects that extend beyond
the end of the financial year.
Funds held for specific purposes, at £25.3 million,
include money required for future working capital
and a threat fund to cushion our key work
programmes against uncertain times ahead.
Free financial reserves are held at a modest level to
maximise the funds available for immediate
conservation needs. We hold just 11 weeks’ worth
of expenditure in free financial reserves.
The Statement of net assets includes Nature
reserves held at their original cost, less depreciation
where applicable, and the defined benefit Pension
liability. The net liability of the scheme, at £46.7
million, increased due to the combined effects of
the depressed asset values (due to the impact on
stock markets of continuing economic difficulties),
a higher actuarial valuation of our liabilities (due to
low interest rates) and increased life expectancy.
The scheme is relatively immature in that there are
significantly more contributing members than
pensioners; therefore the net liability of the scheme
will not crystallise for some years. In view of this
and the medium term recovery plan, the RSPB
trustees do not consider the liability to represent a
significant constraint over the use of financial
reserves for the foreseeable future.
The last full actuarial review was completed in July
2010. The actions taken as a result of this review
were a reduction in benefits accruing of around
25% and a sharing with scheme members of the risk
of future increases in longevity. The final salary
section of the scheme was closed to new entrants in
February 2007. The assets and liabilities of the
pension scheme are reviewed every three years,
following which a plan is agreed with the pension
scheme trustees to make good any deficit. The next
review began on 1 April 2012.
The diversity of our income streams gave us the
financial stability to continue to increase our
conservation and education work, spending £1.2
million more than last year.
Administrative overheads, including governance,
are approximately 5% of our charitable expenditure
and membership related costs a further 5%. This
www.rspb.org.uk
ii