Great Ormond Street Hospital Children's Charity is facing a £13m fundraising deficit after projecting a 25 per cent income drop this year, according to its latest accounts.
The charity reported a slightly smaller total income of £88.3m for the year to 31 March 2020, the accounts show. Total spending dropped from £98.6m in 2018/19 to £82.2m last year.
The charity’s accounts warned that despite a strong financial position, the effects of the pandemic had been significant.
Gosh said that since its accounts were signed off in July it had revised its estimated budget drop to 16 per cent.
The charity said it had taken steps to mitigate against the projected fall in income that include furloughing 39 staff, suspending its annual staff pay review, and putting all recruitment on hold.
The charity said it began working on a strategy in the autumn that incorporates the restrictions and implications of Covid-19, as well as the potential changes to the hospital’s priorities.
Louise Parkes, chief executive of Gosh, said: “This drop will not impact our support for the hospital this year because of the way we secure and commit our funding in advance. However, as the current situation continues, we will face some difficult decisions over where our support is needed most.”
Total fundraising income increased by £3.7m year on year to £87.9m, including £23.3m of legacy income.
The charity said this was thanks to an increased donation from the Abu Dhabi royal family, which is the principal donor to Great Ormond Street's Zayed Centre for Research.
Trading income for 2019/20 rose slightly to £6.9m and the charity’s investment portfolio also grew, from £204m to £216.9m year on year.
Expenditure on research more than halved to £3.6m, although spending on parent, family and staff support projects increased to £24m, up from £5m in 2018/19.