Save the Children expects income to fall this year, new accounts show

Overall income at the development charity increased by £2m to £406m in 2017, but the accounts warn of a projected drop

Save the Children UK is bracing itself for a fall in income in 2018 in the fallout over claims of sexual misconduct, its latest accounts show.

The accounts, which cover the year to 31 December 2017, say it has won fewer long-term grants from institutional donors than usual, and donations and legacies income fell by £11m to £109m.

The fall in donations income was mostly due to a £16m fall in income from institutions, including the end of a programme partnership arrangement with the Department for International Development, which contributed £9.4m in 2016.

Save the Children announced earlier this year that it had temporarily withdrawn from bidding for new funding from DfID, which provided more than £131m of its funding in 2017, after claims were made of sexual misconduct by senior staff at the charity.

Existing DfID-funded programmes will not be affected by the decision to withdraw from future bidding, according to Save the Children.

According to the accounts, Save the Children had an overall income of £406.6m in the year to 31 December 2017, compared with £404.5m the previous year.

The charity spent £408.1m in 2017, which was approximately £2m less than the previous year, the accounts show.

The accounts say: "We won fewer new long-term grants from institutional donors than in previous years, so expect to see a fall in our total income in 2018."

Third Sector asked the charity for additional details about the anticipated fall in income, but it was unable to provide further information at this time.

Save the Children has been under intense scrutiny in the first half of this year as details of sexual misconduct allegations against the charity’s former chief executive and former policy director emerged.

The allegations included claims of inappropriate texts sent to female staff members by the charity's former chief executive Justin Forsyth.

The allegations about Forsyth were investigated by the charity in 2011 and 2015, and Forsyth left his role in 2015. He stood down as deputy executive director of Unicef after the allegations emerged in February.

There have also been allegations against Brendan Cox, the charity’s former policy director and widower of the murdered MP Jo Cox, of inappropriate behaviour towards women.

Cox left Save the Children in 2015 and admitted last month that he had "made mistakes" during his time at the charity.

The Charity Commission launched a statutory inquiry into the charity amid concerns about Save the Children’s response to the allegations against senior staff members.

Have you registered with us yet?

Register now to enjoy more articles and free email bulletins

Already registered?
Sign in
RSS Feed

Third Sector Insight

Sponsored webcasts, surveys and expert reports from Third Sector partners