Finances

Society money

Income

Total income grew in the year by £7 million or 13 per cent to £58.7 million (2009: £51.7 million). Of this growth, £3.1 million was in subscriptions, donations and fundraising income, which now represents 37 per cent of total income.

The proportion of total income raised by grants and contracts remained at 35 per cent. This was achieved through £2.2 million growth, arising from the continued demand that exists for the Society's locally based services. The Society has striven to achieve greater Full Cost Recovery (FCR) on its contracts in the year, with the result that FCR income has increased to £372,000 in 2010 (2009: £101,000).

Legacy income was again strong, growing by £1.2 million to 18 per cent of total income. Other income streams achieved more modest growth levels, and investment income fell as a result of lower interest rates during the period.

Though fundraising and trading costs increased by £1.9 million this year, investment in fundraising has enabled increased charitable activity and has also enabled the Society to achieve substantial new partnerships with, for example, Credit Suisse, KPMG and Bupa, which will benefit the whole Society. In addition, this investment has resulted in excellent returns from direct mail campaigns and additional raffles, which helped the Society to make available £49.0 million (2009: £43.9 million) to spend on its charitable activities.

In 2009/10 support from pharmaceutical companies totalled £43,000. The majority of this was support for the Worried About Your Memory? awareness campaign, totalling £28,000 from Pfizer Ltd and Shire Pharmaceuticals Ltd and £13,000 from Novartis Pharmaceuticals UK Ltd. There was also £2,000 general donations from Novartis Pharmaceuticals UK Ltd and Astra Zeneca plc.

The Society's ethical policy states that income from the pharmaceutical industry should be capped at 5 per cent of income based on the accounts for the preceding year.

Donations from the pharmaceutical industry in 2009/10 represented 0.08% of total income.

Expenditure

Total charitable expenditure increased during the year by £4.4 million. Almost 90 per cent 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 £2.6 million (2009: £2.5 million), while governance costs, which covers those costs incurred in complying with constitutional and statutory requirements in line with SORP 2005, fell slightly to £272,000 (2009: £280,000).

During the year, £2.0 million was awarded by the Society to research projects into the cause, cure, care or prevention of Alzheimer's disease and other dementias.