Annual Report and Accounts 2010/11 - Cancer Research UK

Our finances
Despite a challenging economic environment,
we reported a satisfactory outcome for the year
with total income of £483 million (2010: £515 million)
and total funds of £186 million (2010: £182 million).
The outcome for the year was better than we expected,
however the outlook remains challenging and uncertain and
we continue to take a conservative approach to the
commitment of expenditure and overall management of
reserves. This is reflected in our reserves and investment
policies as referred to on pages 12 and 13.
During the year, we maintained our annual research activity at
£332 million (2010: £334 million). This is the key element of
financial planning and we remain well placed to continue to
meet our research commitments going forward due to a funds
position of £186 million (2010: £182 million) and cash and
investments of £211 million (2010: £225 milllion) at year end.
Income
Total income was down by 6% to £483 million (2010:
£515 million). However, adjusting for two one-off income
windfalls in 2009/10 underlying income was down 3%,
holding up well in the current climate.
Income from fundraising was down by 3% to £433 million
(2010: £446 million), again a good result. Two key factors
influenced the income reduction. In the Race for Life series
of events, participant numbers were 64,000 (9%) less than
in 2009, and the average sponsorship received for offline
donations was lower, reducing income by 12% to £58 million
(2010: £66 million). Income in 2009/10 included our
largest-ever legacy.
This was partially offset by increased income from direct giving
of over £5 million to £100 million, with lapse rates remaining
stable and average value of donations increasing. Also, our new
fundraising event, a night-time walking marathon called Shine,
raised £2 million and this event is being developed in 2011.
Retail income held up well, with income of £65 million from
donated stock and bought-in goods almost unchanged from
2009/10.
Costs of generating funds
The costs of generating funds increased to £151 million
(2010: £143 million). This reflects the increasing challenge to
raise funds in the current giving market. Unlike 2009/10, we
did not benefit from any unanticipated ‘windfalls’ in 2010/11.
Our investment in fundraising is essential to sustaining income
to fund long-term research. We remain focused on driving
efficiencies and optimising costs.
Despite reduced income, increased costs and technology
investment, 80% of every £1 donated was available to beat
cancer (2010: 83%). During the year we reviewed the basis of
calculation to reflect each £1 donated as opposed to each
£1 received, as this is considered to be a more appropriate
measure.
Costs of charitable activities
Our research is carried out in many institutes, universities
and hospitals across the UK, both by our employees and
by our grant-funded researchers – in many cases working
closely together.
Research costs and how we report grants
Many of our programme grants are awarded for up to
five years and may be renewed to support the next stage
in the research process. Clinical trials can take several years
to complete and may require many years of follow-up. In all
areas we carry out the same rigorous process of evaluating,
reviewing and ensuring the highest standard of research in
allocating our funds. Committees of international experts in
each research field review funding applications, including
renewal of existing awards, and monitor the quality of
research programmes.
6%
Cost of charitable
activities up to £340 million
(2010: £322 million)
3%
Fundraising income down
to £433 million
(2010: £446 million)
6%
Total income down
to £483 million
(2010: £515 million)
10 / Annual Report and Accounts / Our finances