Oxfam looks to increase unrestricted income with more investment in legacies & regular giving
Melanie May | 19 December 2024 | News
This past year has seen Oxfam GB invest more in regular giving and legacy donations as it seeks to increase unrestricted income, according to its annual report.
This is to help it rebuild its reserves, as well as in response to the continuing challenges in the external environment for nonprofits.
Oxfam’s annual report shares that £123.4mn was spent on generating current and future income in 2023/24 – up from £106.4mn in 2022/23 – reflecting this investment in unrestricted income generation.
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Investment increase in regular giving & legacy donations
2023/24 saw the charity receive £65.2mn in unrestricted donations and legacies income – down 5% on the previous year. Regular giving income was £39.5mn (3% down on 2022/23’s £40.6mn). Expenditure on regular giving increased YOY by £3.3mn as Oxfam reintroduced investment in regular giving donor acquisition with the aim of reversing a period of decline in regular giving. As a result, net regular giving fundraising income was £27.5mn as a result, down from £31.9mn the previous year.
Legacy income fell to £15.6mn from £19.4mn in 2022/23 but Oxfam says expected future income from estates for which the administration has yet to be finalised is £5.9mn against £4mn in the previous year. Its work to increase legacy donations saw related expenditure reach £1.6mn, up from 2022/23’s £0.7mn.
Overall income drop mostly down to previous year’s major appeals
Overall, Oxfam’s annual report shows that income for the year to end of March 2024 dropped to £368mn, from £400.6mn in the previous financial year. This, it says, is mostly due to having major fundraising appeals in 2022/23 for the Türkiye Syria earthquake and Pakistan floods, which bolstered donations, as well as continued income from its Ukraine appeal.
Oxfam’s retail activities including high street shops remained stable, generating gross income of £102.8mn, up from £98mn the previous year. Sales of women’s fashion rose 19% on year with revenues from Oxfam’s online shop rising to exceed £10mn. Book sales also grew, accounting for £21mn, which was more than 20% of its total trading revenue.
However, investment in properties, upgrades to tills and IT systems, and increasing paid hours for shop teams meant that net retail income was lower than the previous year.
Investments & rising costs saw reserves drop
As a result of its investments and rising costs, Oxfam’s general reserves dropped below the target range of £35mn – £45mn to £32.9mn, with a £5.2mn deficit reported at the end of March 2024. In response, as well as continuing to invest in unrestricted income growth, Oxfam has introduced cost saving measures, which it says include a recruitment freeze in non-business critical roles, travel restrictions and limits on the use of consultants.
Halima Begum, Chief Executive of Oxfam GB, who joined the organisation in April 2024, said:
“The past year has been extremely difficult with the world facing the triple threats of conflict, climate change and the cost-of-living crisis. Just as we have been for more than 80 years, Oxfam and our partners are there to support, whether providing desperately needed aid to those caught up in the humanitarian catastrophe caused by the war in Gaza or helping farming communities in Somalia adapt their crops amid the devasting impacts of climate change.
“At the same time, we are facing a very challenging fundraising environment compounded by the sustained burden of rising costs. However, it is incredibly heartening to see so many of our donors continue providing their invaluable support to Oxfam. Equally, our retail network continues to attract shoppers both on the high street and online, particularly with the growing interest in buying pre-loved items including clothes and books. We’ve made significant investments in our shops this year to help sustain our life-saving and life-changing work with communities and partners around the world.”
The report also shares that in 2023/24 almost 290,000 people took Oxfam campaigning actions, from calling for a ceasefire in Gaza to seeking justice for the communities worst affected by climate change. More than 20,000 people volunteered in Oxfam shops in 2023/24, while over 7,000 supported Oxfam by stewarding or campaigning at festivals and events.
Oxfam increased its charitable spending by £18.9mn up to £272.3mn including more flexible funding going directly to countries and local partners as part of the organisation’s drive to shift power to communities in the Global South. In 2023/24 Oxfam worked with 475 partner organisations, including 90 organisations dedicated to women’s rights.
1.2mn more people reached
Despite the drop in overall income, Oxfam GB’s work with communities reached almost 11 million people in 2023/24, an increase of 1.2 million on the previous year.
Through the year, Oxfam helped over 9.2mn people facing humanitarian emergencies, 900,000 more than in 2022/23. This included supporting people affected by the war in Gaza as well as other ongoing conflicts including Ukraine and Yemen. It also worked alongside partners and communities to support people affected by droughts and flooding across East Africa.
Begum said:
“I’ve seen first-hand the incredible work Oxfam and our partners do, from supporting communities in the West Bank, to displaced refugees on the South Sudan border. What has really struck me is the solidarity we share, which is mirrored by the people in the UK who support our campaigns and give so generously to fund our work.
“Without that support and the generosity of our remarkable volunteers and donors, we simply wouldn’t be able to do what we do. Given the scale and number of crises the world currently faces, our collective efforts are more important than ever.”
About Melanie May
Melanie May is a journalist and copywriter specialising in writing both for and about the charity and marketing services sectors since 2001. She can be reached via thepurplepim.com.