IoF consults staff on cost-cutting plans
Howard Lake | 30 April 2013 | News
The Institute of Fundraising has begun consulting with staff over how it can respond to cuts in its budget. Current plans involve a net loss of four full-time positions at the professional body for fundraisers in the UK.
The Institute faces two financial challenges in particular. First, its annual grant from the Cabinet Office's Office for Civil Society has been tapering down from £250,000 to £136,000 this year, and will end completely at the end of this financial year.
Secondly, the Institute is facing a growing irrecoverable VAT burden as a result of the conferences and Academy training courses that it has been providing, partially to generate income to offset the loss of the OCS' grant.
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"We are planning for life after the OCS grant", Peter Lewis, CEO of the Institute, told UK Fundraising.
He had hoped that the Institute's popular small charities programme would have garnered more ongoing support from grantmaking trusts and corporate supporters but this has not materialised at anticipated levels.
In addition to hiring its first full time fundraiser recently, the Institute has therefore focused more on its conference and Academy training programme to generate income, thereby increasing the VAT bill.
Lewis pointed out that the Institute achieved a growth in income last year and expects to grow income again in this, its 30th year. In the past year it had doubled the number of corporate supporters and created new income streams such as its online certificate in fundraising.
A decision on staffing levels is expected in early June.
About Howard Lake
Howard Lake is consultant editor of UK Fundraising. He founded the site in 1994 and successfully sold it in 2022. As director of Giving X Ltd he is exploring growing giving on a massive scale.
He is the founder of Fundraising Camp and co-founder of GoodJobs.