Finances

Society money

Financial highlights

It has been a successful financial performance in many areas for the Society, in spite of the difficult economic conditions that have prevailed over the past year.

Income again exceeded expectations, and for the fourth year in a row, double figure percentage growth was achieved. This increase in income, supported by our continued investment in fundraising, has led to an increase in charitable expenditure of 14%. Overall, this resulted in a surplus for the year before unrealised losses on investment of £867,000 (2008: £2.1 million).

The market value of our investments decreased over the year by £1.0 million, giving a consequent slight decrease in reserves of £172,000.

Income

Total income grew in the year by £6.2 million or 14% to £51.7 million (2008: £45.5 million). £1.7 million of this growth was in grants and contracts for services provided through branches, and this now represents 35% of total income evidencing both the importance of, and the demand that exists for, the Society's locally based services. However, despite this growth, and government commitment to Full Cost Recovery, the Society is not yet achieving FCR on many of its statutory contracts and many of these services are still being subsidised by voluntary donations.

Subscriptions, donations and fundraising income grew by £3.6 million, and now represent 36% of total income.

Other income streams achieved more modest growth levels, although Legacy income was strong and contributed nearly 18% of all income.

Though the fundraising and trading costs increased by £2.1 million this year the increased investment in fundraising across the Society has enabled increased charitable activity and also the ability to achieve substantial partnerships with, for example, KPMG and Bupa, which will benefit all of the Society. The increased investment has also helped drive the significant increase in our income, to provide £43.9 million (2008: £39.7 million) available for the Society to spend on its charitable activities.

In 2008/09 donations from pharmaceutical companies totalled £122,000. The majority of this was support for the Worried about your memory? awareness campaign, totalling £105,500 from Eisai Ltd, Pfizer Ltd and Shire Pharmaceuticals Ltd. An additional £16,500 has been received from Pfizer Ltd and Eisai Ltd.

Our ethical policy states that income from the pharmaceutical industry is to be capped at 5% of income, based on the accounts for the preceding year.
Donations from the pharmaceutical industry in 2008/09 represented 0.24% of our total income.

Expenditure

Total charitable expenditure increased during the year by £5.4 million. Almost 90% of this expenditure continued to be in providing care services and direct
services to people with dementia and those who care for them.

There was also an increase in campaigning and awareness raising expenditure, to £2.5 million (2008: £1.7 million), while governance costs, which cover only those costs incurred in complying with constitutional and statutory requirements in line with SORP 2005, were almost the same as last year at £280,000.

During 2008/09, it became clear that the Society was obliged to register for VAT. This process is now underway and will inevitably have an impact throughout the Society. A provision for all VAT due up to and including
2008/09 has been included in these accounts.