Impact review 2011/12

Despite the slowdown seen in the UK economy, we are delighted to report strong growth in income.

£71m: our income exceeded £70 million for the first time

9%: This enabled the Society to increase its charitable expenditure by 9 percent

£1.1m: The Society's reserves increased by £1.1 million

Income

Total income increased in the year to £71.0 million (2011: £61.6 million). Voluntary income, consisting of donations and legacies, amounted to £41.1 million (2011: £32.1 million. Much of the credit for this growth must go to all those supporting the successful Tesco Charity of the Year partnership. Income given specifically for research increased to £3.5 million (2011: £2.5 million).

Expenditure

During 2011/12, 88 pence in every £1 of total expenditure was spent on direct costs towards improving the lives of people with dementia (2011: 87 pence in the pound). The remaining 12 pence in every £1 was spent to support our frontline activity, including IT and premises around the country. Charitable expenditure increased during the year by £4.7 million to £56.0 million (2011: £51.3 million) and of this 85 per cent was spent on care services (2011: 87 per cent). The investment in fundraising has increased to £12.0 million (2011: £9.8 million), to ensure funds are generated to continue the Society's work. £3.6 million was allocated to research during 2012 (2011: £2.8 million).

Funds

Total funds as at 31 March 2012 were £29.1 million (2011: £28.0 million), of which £22.2 million (2011: £24.0 million) were unrestricted. It is the Society's policy to hold free reserves equivalent to at least three months of charitable expenditure. At 31 March 2012 the Society held free reserves equivalent to 4.3 months (2011: 4.7 months) of charitable expenditure. In the light of the economic uncertainty and the pressures on public spending at the present time, the Board of Trustees feels that the above reserves cover is prudent and also allows for future growth.