Five years at a glance: A review

Our net result shows a surplus of $27.3 million – $12m less than last year. Blood Service continued to account for the majority of the surplus (nearly 96%) with a surplus from the Main Operating Program, an increase in blood and blood product inventories and an actuarial gain on retirement obligations. Humanitarian Services accounted for the remaining 4%, being income received in advance as part of government grants.

Our total income for 2013 (including the Blood Service*, which is fully funded by Australian Governments) was $1,023.8 million. Year on year income levels have increased significantly over recent years, with 2009 being an exception due to the significant level of funding raised in support of people and communities affected by the Victorian Bushfires.

Humanitarian Services income for everyday work (excluding the Blood Service and emergency appeals) has grown significantly from $195 million in 2009 to $429 million in 2013. This has been driven by increased Government Grants (a significant portion of which are for our migration support programs) and strong growth in Community Support.

Over the past two years, we have increased investment in regular giving to support funding for everyday work, now and into the future. Over 40% of all community support now comes via regular monthly giving, up from 25% in 2009. Almost $30 million was donated by this supporter group over the year, a significant lift from the $10 million plus income raised by 38,000 regular givers in 2009. At the end of June there were around 107,000 regular monthly givers.

The Community Support for Emergency and Disaster Appeals fluctuates depending on need and this year, we launched appeals in response to the Queensland floods, Tasmanian bushfires, and the humanitarian crisis in Syria. We will continue to work with Australian governments to help our communities recover from these local disasters, and local and international Red Cross staff and volunteers are providing relief in the most needed areas of Syria. Fundraising income and costs vary substantially depending on the level of Disaster Appeal income.

There were fewer international emergencies this year seeking support from the Australian community. However, we continue to respond to emergencies from previous years at a pace determined by the local communities affected.

Although our Commercial Operations have experienced difficult market conditions over the past three years, cost saving initiatives have been put in place this year to minimise the impact on our net income. Overall, commercial activities continued to raise necessary funds to underpin our work.

Administration costs have significantly decreased over the past five years, which reflects the efficiency gains from restructures within the organisation as well as overhead cost recoveries from government-funded programs. Similarly, restructures in our Marketing and Fundraising teams and changed strategies used to deliver fundraising have also led to greater efficiencies and reductions in our cost levels. Significant investments have been made in IT infrastructure with the expectation of further increased value and reduced costs in the future.

	ACTUAL
	2013	2012	2011	2010	2009
	$,000	$,000	$,000	$,000	$,000
Financial Results
Blood Service ¹	574,587	578,461	567,471	574,207	456,491
Government Grants ²	288,804	217,663	115,086	80,072	91,983
Community Support - for everyday work	75,579	56,729	53,677	47,628	38,829
Community Support - for emergency appeals	20,186	4,102	55,586	21,173	376,096
Commercial Operations	33,498	34,336	34,766	36,664	37,187
Government Grants for Commercial Operations	15,590	17,074	14,094	8,833	6,627
Other income ⁵	15,546	46,567	24,913	28,896	20,298
Total income	1,023,790	954,932	865,593	797,473	1,027,511
Blood Service	548,363	539,317	465,798	474,248	418,658
Domestic programs	315,401	223,754	121,981	93,837	111,218
International programs	34,344	28,620	17,716	17,116	19,110
Emergency Appeals ³	14,630	31,439	53,149	32,989	404,546
Commercial Operations ⁴	46,052	47,753	49,988	43,404	27,725
Fundraising Costs ⁶	15,864	15,965	14,880	12,600	16,563
Marketing	3,353	5,981	6,356	6,170	5,066
Administration	18,461	22,694	19,482	23,822	32,059
Total expenditure	996,468	915,523	749,350	704,186	1,034,945
Surplus/ (Deficit)	27,322	39,409	116,243	93,287	(7,434)
Cost of Fundraising including Disaster Appeals	17%	26%	14%	18%	4%
Cost of Fundraising excluding Disaster Appeals	21%	28%	28%	26%	43%
Cost of Administration	4%	6%	7%	10%	5%
Program Investment Ratio without Emergencies	78%	67%	49%	48%	21%
¹ Blood Service includes Capital Works of $52m in 2013, $60m in 2012, $79.3m in 2011 and $90m in 2010. ² Government Grants excludes Blood Service and Commercial Operations - shown separately. ³ Emergency Appeals includes Domestic and International Appeals. ⁴ Commercial Operations includes Red Cross College, Red Cross products and Retail. ⁵ Other income includes investment income ⁶ Fundraising costs include costs for raising revenue and in-kind support from public, government and non-government grants. * The Blood Service is fully funded by Australian governments and financial accounts are produced separately. For further information, the annual report and full financial report can be obtained at donateblood.com.au.