So earlier today this article caught my interest and got me thinking about a few things. www.dailymail.co.uk/money/markets/article-6737765/How-charities-spend-226m-fat-cat-pay-spin-doctors-running-costs.html
All in a good cause? How top charities spend £226m on fat-cat pay, spin doctors and other running costs – and claim it goes to frontline service
It says that what money is being spent on it being hidden by how the charity commission require accounts to be reported.
The article highlights how Save the Children claims to spend 100% of its expenditure on 'Charitable causes' to make it look like its spending it all on those it's supported to support and yet they pay their Chief Executive £200,000.
Are chief executives really charitable causes rather than a bog standard staff expenditure?!!!
So with that in mind it having got me thinking, I thought I'd have a look at Stonewall...
apps.charitycommission.gov.uk/Showcharity/RegisterOfCharities/CharityWithPartB.aspx?RegisteredCharityNumber=1101255&SubsidiaryNumber=0
Here's Stonewall's page on the charity commission website.
It's pretty vague. It says that 83% of its expenditure goes on charitable causes. So it doesn't look too bad on the face of it.
Income item
Voluntary - £1,332,140
Trading to raise funds - £3,526
Investment - £47,293
Charitable activities - £5,456,648
Other - £406,107
Total - £7,245,714
Investment gains 0
Spending type item
Income generation and governance
£1,273,841 17%
^Charitable spending £6,217,261 83%
^
So I delved a bit deeper into the actual annual report to see how it breaks down.
beta.charitycommission.gov.uk/charity-details?regid=1101255&subid=0
Here are the documents.
If you look through the expenditure for the charity, it's interesting where they do get their money from.
The last accounts filed were for the year ending Sept 2017. I believe the next accounts are due in March (something to look out for)
Anyway, this falls into Individual donations, Corporate donations, Legacies, Donated services and grants for charitable services. (Donated services comprise pro bono professional legal support, media services and gifts for catering)
Let's start with 2016 figures (this was up from 2015 BTW)
Individual donations - £1,359,199
Corporate donations - £218,761
Legacies - £155,214
Donated services - £6,368
Total £1,739,542
Grants £900,988
(Of which are government grants) £568,319
Total: £2,640,530
Compare with 2017
Individual donations - £943,460
Corporate donations - £104,698
Legacies - £96,611
Donated services - £187,371
Total £1,332,140
Grants £871,804
(Of which are government grants) £655,573
Total £2,203,944
So most of the £7. 2million into the charity which appears on the charity commission profile isn't documented as donations and grants. It falls under 'fees' or from assets.
The other thing I note in the accounts is the skyrocketing expediture on staff. This will cover staff for the running of the charity as well as training and raising money.
This comes in, in 2015 as £3,348,812, 2016 as £3,887,731 and 2017 £4,424,946.
In 2016 they had an income of just over £7million, in 2017 it was £7.2million.
And crucially, they made a surplus in 2016 but their expenditure in 2017 relied on what was in the bank account to cover it.
So a few things here;
- Image is a big deal. There was a notable shift in 2017 in the donated services. This is connected with media and pr. In other words companies wanted to be associated with Stonewall. It plays into this liberal identity stuff.
- individual donations aren't really a huge part of their income. Corporate image is important in both the fees they are generating and the donations in services they receive.
- Government grants as almost as important as donations
- Donations were down between 2016 and 2017 and there was an increased focus on corporate income which went up.
- There is considerable rising spending on staffing
- In 2017 Stonewall appears to have effectively run at a loss rather than a surplus. I stress this might have been been deliberate for some reason, and not a concern as there was plenty of money in the bank.
In terms of what Stonewall actually 'do', they are a service. They aren't providing anything physical like food, clothes, water.
I have to ask a crucial question when reflecting on those figures, who are Stonewall serving? Is it the grassroots LGBT community still or is it their own nice little gravy train and the corporate cool?
Reflecting on the article that got me thinking, it's arguably an increasing real gray area surrounding Stonewall and it's purposes and services in 2019 because ironically if they are successful then they should be reducing their expenditure not increasing it!
It's been stated before that their success is actually the biggest threat to the charity. They have to stay relevant for their services to be in demand and they have to have an image that appeals on a corporate level. I'd also argue this increasing dependancy makes them vulnerable to losing sight of their original purpose.
So why did Ruth Hunt quit?
Could the timing suggest something else to what's been speculated on so far in this thread? I remind you, that the next accounts for the year ending September 2018 are due next month.
Did the bubble burst in 2018 with a PR disaster affecting its corporate income?
Was 2017 just a blip or did the charity again blow a shit load in staffing costs in 2018 and did they have to rely on what was already in the bank account to cover spiralling expediture?
If that's indeed the case, would Ruth Hunt still have the confidence of the Trustees?
If 2018 was really bad in terms of the accounts, you'd expect the shit to hit the fan when the accounts came in to the board and just before they were due to be published with the charity commission.
Sometime in, oh late February perhaps...
I could be wildly off the mark but I will speculate that we should be keeping an eye out for those next bunch of figures...