Trustees' annual review

Trustees' annual review

In 2015, 62% (2014: 69%) of the gross income of the Hospice came from charitable donations, fundraising activities and legacies.

Fundraising activities and the Hospice lottery contributed £962,499 (2014 - £930,209). Many regular fundraising activities took place including the Manchester to Blackpool Bike Ride, the Annual Ball, the 'Light for a Life' Appeal and the Ladies night time walk. New activities were organised during the year including the Memories Walk, Counting on Care Appeal and the Sky Dive, all of which will be repeated in 2016. Once again we have worked closely with schools and encouraged children to visit the Hospice and its grounds at a number of themed events. This encourages conversations about the work of the Hospice, enabling us to dispel some myths and create potential ambassadors for the future. The fundraising team continues to forge strong links in the community and supports the established network of Community Support Groups which organise their own events or promote those events organised by the Hospice. Indeed the local community arrange many independent events throughout the year. The Hospice lottery has increased its membership from 7,700 at the start of the year to 9,027 by the end. This success has been due to a new door-to-door canvassing model introduced in late 2014. We are hopeful that this initial success will continue and that we can eventually reach our goal of 15,000 lottery members in the Borough.

During the year, the Hospice shops across the Borough, which sell a wide range of donated goods, had a turnover of £1,059,343 (2014: £1,038,558) and achieved a surplus of £575,739 (2014: £619,419). The success of the shops is a tribute to the hard work and dedication of the many volunteers who work within them supported by a small team of Hospice staff.

Total income, excluding unrealised gains, has decreased by 11% this year (2014: 1%). Income from donations and gifts was £270,913 (2014: £271,711) whilst income from legacies fell significantly to £373,478 (2014: £1,123,620). Despite this level of legacy income, the Hospice has been fortunate in recent years with regard to the level of legacy income and the Trustees are extremely grateful to those who have left a gift to the Hospice in their wills. The unanticipated reduction in legacy income in 2015 is something outside our control and once again demonstrates the impact that legacy income can have on financial performance. The Trustees believe that over the past few years the level of legacy income and donations demonstrates the impact that the Hospice has had over the years on the lives of so many across the Borough.

Income from the Wigan Borough Clinical Commissioning Group (CCG) was £1,332,815 (2014: £1,382,815) of which £50,000 (2014 - £100,000) related to exceptional non-recurrent income. The Trustees are grateful for the support given by the CCG and recognise the excellent working relationship that exists between the two organisations.

The fall in legacy income has caused a significant impact on the accounts which show net expenditure for the year of £429,556 (2014 - net income of £325,946). Indeed this is the first year that the Hospice has recorded a deficit for over a decade, although annual deficits have been predicted for a number of years but have been avoided by higher than expected legacy income or 'windfalls' from other sources. In times of deficit we have to rely on reserves to enable us to continue our work. The development of new income streams or increasing existing ones is extremely challenging in the current economically fragile and highly competitive environment. Where new clinical services are developed, funding is sought from the statutory sector, either through the Wigan Borough Clinical Commissioning Group or Wigan Council, via the development of robust business cases. The Senior Leadership Team in conjunction with the Board continue to monitor the financial situation closely and have conducted a process of scenario planning over the next five years to ensure we are fully prepared for what lies ahead. The unpredictability of income streams coupled with increasing costs has been the hallmark of Hospice finances since the charity was founded and makes planning for the future, which is dealt with in the next section, extremely challenging.

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