UPDATE - Issue 39 - Winter 2010
How has the credit crunch affected Prostate UK?
Trustee Richard Killick explains
It was difficult in September 2007 to anticipate that problems in the US housing market would result in customers queuing outside Northern Rock branches to get their money out. And just how this would affect Prostate UK was equally hard to foresee. Many Update readers have enquired what the impact has been. Dealing with some of their questions directly:
Was the money entrusted to us by our supporters held in ‘dodgy’ banks?
Fortunately not but the Trustees did, at one stage, scratch their heads long and hard to decide where, and in how many places, to hold our funds.
Has Prostate UK been able to sustain its support for research, training, information provision and raising awareness?
Largely, yes, although we have not been able to grow in the way we hoped a few years ago.
The table below shows figures relating to four financial years. The figures for the year ending in March 2007 represent the situation before the crunch began. All the figures are from our annual report and accounts except for 2010 where we use our current forecast.
The Total income line would show a small and steady decline were it not for the fillip to the 2008 figure from an unexpected half million pound legacy. The decline itself is attributable to the significant drop in investment income and a modest decrease in donations received from individuals.
Grants for research into all three prostate diseases have been sustained
The Total expenditure line contains within it both the spend on implementing Prostate UK’s objectives and some tightly controlled in-house expenses. We are pleased to report that we have not cut back on money spent on Master Classes for healthcare professionals (always well attended and producing glowing appraisals). Indeed, their number has increased from four per year to six. Grants for research into all three prostate diseases have been sustained, as has Prostate UK’s expenditure on information leaflets, the website and actions to raise awareness. The most noteworthy awareness raising activity is Pants in the Park. In 2007 it was held in just one location while this year will see its presence in 10 different locations.
The vicissitudes of the recession can be seen in the losses sustained on investments in 2008 and 2009. Fortunately only some £16,000 were actually realised and the forecast to March this year reflects the improved performance of the stock market.
Overall, therefore, Prostate UK has weathered the financial storms of the credit crunch quite well and looks forward to 2010 with optimism.
| 2007 | 2008 | 2009 | 2010 forecast | |
|---|---|---|---|---|
| Total income | £1,302,000 | £1,706,000 | £1,269,000 | £1,235,000 |
| Total expenditure | £997,000 | £1,074,000 | £953,000 | £979,000 |
| Gains/losses (mostly unrealised) | £51,000 | -£77,000 | -£132,000 | £104,000 |
| Net movement in funds | £357,000 | £555,000 | £184,000 | £359,000 |