The numbers: Rainbow Trust Children's Charity

Rainbow Trust Children's Charity provides support to families who have children with life-threatening or terminal illnesses. It helps 1,000 families a year.

Highest salary: One employee was paid between £70,000 and £80,000.

Reserves policy: The charity reviewed its reserves policy during the year. It changed its policy from a target of holding readily realisable reserves equivalent to six months' operating costs to reserves equivalent to four months' costs over the following three years. At year-end, reserves represented three-and-a-half months' costs.

Fundraising costs: The charity spent £509,000 on generating voluntary income of £2.33m, giving it a fundraising ratio of 21p in the pound. The previous year's ratio was 27p in the pound.

Pension: The charity offers a money-purchase pension scheme and contributes 5 per cent of pensionable earnings.

How performance is communicated: The website ( offers a link to the charity's impact report for 2006/07, which describes the organisation's achievements and performance. The design is quite text-heavy but the report is a good attempt to show how the charity believes it is making a difference and meeting its objectives. The trustees' report and accounts, which are not available on the site, give details of the charity's three-year strategy.

The charity says: "During the year we substantially increased our income and reduced our deficit. We also agreed to try to develop voluntary income increases of 13 per cent a year over the following three years, to try to generate income from statutory sources and develop partnership working with other agencies and charities. During the year, we featured in the Department of Health's review, Palliative Care Services for Children and Young People in England."

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