1 Honorary Treasurer’s Report Samantha Peters. 2 2 A very difficult year Recession hit charities...

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Honorary Treasurer’s Report

Samantha Peters

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A very difficult year

• Recession hit charities hard• Legacy funding dropped significantly • Corporate sector reduced support• Pensions funds became ‘unmanageable’• More pressure on people with arthritis• More people sought our help

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Year ending on 31 December 2009

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The impact on Arthritis Care

• Large deficit on the year (£1.8 million) • Income dropped significantly (£1.5 million) • Reserves fell significantly (£3.6 million) • Pension scheme became unviable • Paper losses can undermine stability• Clearly an unsustainable position

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How we tackled the problem

• Restructured the organisation • Made substantial cuts to infrastructure• Set reduced budget for 2010, planning

‘balanced’ budget for 2011• Appointed professional fundraisers• Constant vigilance (costs and revenues)• Scenario planning (ready and prepared)

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The way ahead • This will take time to turn around • We do not underestimate the challenge• Can use overdraft; not long-term solution• Opportunity to use existing resources within the

whole charity • Need members and supporters help• If all stakeholders work together the outlook is

brighter