NCVO income is down for a third year in a row

But spending cuts allow it to record first surplus since 2008

NCVO
NCVO

The income of the National Council for Voluntary Organisations fell for a third consecutive year in 2010/11, but cuts in its spending enabled it to record its first surplus since 2007/08.

The membership organisation’s annual report and financial statement, which was filed with the Charity Commission last week, shows that it generated £10,140,000 in the financial year ending in March and spent £9,781,000 – a surplus of £359,000.

The report describes the year as "highly successful" but raises concerns about the current financial year, in which several major contracts have already ended.

The infrastructure quango Capacitybuilders, which closed at the end of March, awarded £1.8m to the NCVO last year. The Office for Civil Society gave it almost £1.1m last year as part of its strategic partners programme.

The OCS has awarded the NCVO £500,000 from its new Strategic Partners Transitional Fund this year, but the sum will taper down to zero in 2014.

Overall income fell by 2 per cent in the year but is 24 per cent down on the £13,396,000 generated in 2007/08.

Membership subscriptions generated £975,000 and NCVO Trading Limited, a trading subsidiary, returned a profit of £814,000.

Spending fell by 7 per cent in the year. This was achieved partly by making 30 redundancies, which helped to reduce wages from £4.5m to £4.2m.

Redundancy payments for the year were £366,000, compared with £18,000 the previous year.

The report reveals that the NCVO spent £119,000 on interest payments for a £1.9m bank loan it took out in 1992 to purchase the freehold of its headquarters in Regents Wharf, London. The last instalment on this loan is due in June 2012.

The NCVO also received planning permission in the last financial year to build a fourth floor at Regents Wharf, which it plans to let to other voluntary organisations.

The accounts show that expenses incurred by the office of Sir Stuart Etherington, the NCVO’s chief executive, were £23,884 in 2010/11. They totalled £22,381 in the previous year.

John Plummer recommends

NCVO

Read more

Have you registered with us yet?

Register now to enjoy more articles and free email bulletins

Register
Already registered?
Sign in

Before commenting please read our rules for commenting on articles.

If you see a comment you find offensive, you can flag it as inappropriate. In the top right-hand corner of an individual comment, you will see 'flag as inappropriate'. Clicking this prompts us to review the comment. For further information see our rules for commenting on articles.

comments powered by Disqus