Society of St Vincent de Paul (Ireland) National Management Council Report (Continued) For the year ended 31 December 2020
FINANCIAL REVIEW The Society continues to see in our communities the need for significant support to individuals and families through Visitation Work and the Society’s Special Works. The financial statements for 2020 are in line with FRS102 and the Charities SORP. The Society depreciates property assets and capital grants are amortised over the life of the asset. The Society continues to aim for a balance of our income with expenditure over multiple year periods. The income sources and levels are the critical factors in creating the Society’s capacity to provide direct financial assistance to individuals, families and the provision of services to recipients. The financial outcome for the year ended 2020 show a net deficit of €3.2 million compared to €1.0 million in 2019. This is driven mainly a decrease in income while expenditure remains relatively stable year on year. The income loss from the closure of our charity shops due to Covid-19 restrictions was somewhat offset by an increase in donations and legacies. Analysis of Income In 2020, the Society’s total income, which arises from several income streams, was €78.6 million versus €83.3 million in 2019. The Society’s income is analysed in Notes 3, 4 and 5 to the Financial Statements. The income from church collections was €3.8 million (2019: €9.4 million). Church gate collections were lower due to the Government Covid-19 restrictions. The income from donations increased to €26.3 million (2019: €14.9 million). The income from donations and collections will vary year-on-year due to their intermittent nature, the occurrence of exceptional once-off collections or donations. The Society benefitted from several special fundraising initiatives which included an appeal in May 2020 and the Late Late Show and Blue Envelope appeals. These were incremental to the recurring annual appeal in December 2020. The income from legacies was €4.7 million (2019: €8.0 million). The receipts from legacies are irregular, with dependency on an individual’s preferences when finalising their will, and the interim time between death and notification of the legacy. The community charity shops turnover decreased to €18.6 million (2019: €28.8 million) due to Government Covid-19 Policy on retail trading restrictions in 2020. The Society received government funding for the provision of services to recipients and other government grants of €16.8 million (2019: €12.5 million), which includes €4.6 million of government Covid-19 financial support schemes, €1.5 million (2019: €1.5 million) from the Department of Housing, Planning, Community and Local Government for the Poverty Relief Fund.
20
