At Book Aid International we receive no government funding. Our income comes from four main sources: trusts and foundations which make grants to support our work; companies which make financial donations, schools and community organisations which raise funds to support us and individuals who make one-off or regular donations.
Below is a summary of our 2015 income and expenditure. If you would like to read our full accounts, you can download our 2015 Trustees’ Report and Accounts.
How we raise funds
Our total income in 2015 was £14,164,444. This includes the value of the books donated to us by publishers. You can read more on how we value our books below.
Our total cash income in 2015 was £1,858,035, of which almost half (43%) came from individuals, many of whom make a monthly gift to support our work. Just over a third of our income (36%) came from trusts and foundations and just over 10% came from corporates. Community fundraising, which includes schools which raise money for us on World Book Day, people taking part in challenge events and community events such as book sales and quizzes raised just over 7% of our total income.
How we spend funds
Our total expenditure in 2015 was £11,508,629. This includes the value of the books we donated to our library partners. You can read more on how we value our books below.
Our total cash expenditure in 2015 was £1,688,813 of which 36% was spent on fundraising. The remainder of our cash expenditure (59%), apart from a very small amount on governance costs was spent on delivering our charitable activities.
Our fundraising ratio
For every £1 donated to Book Aid International, we spend 4p on fundraising and the rest on charitable activities and the support they need to continue. This figure is based on voluntary income and an estimate of the re-purchase value (at 70% of the market cost) of the books we receive as Gifts in Kind. If only voluntary income is considered, then for every £1 that is donated we spend 33p on Fundraising, with the rest on charitable activities and the support they need to continue.
How we value the books we send
The books we send to our library partners are donated to us by publishers and the value of these books is reflected in our accounts. We value our books based on Neilsen Bookscan prices and we apply an overall 30% discount from the full Recommended Retail Price (RRP) to allow for the estimated market discount for 3rd party commercial buyers.
How we control our costs
Our costs are closely managed by our Board of Trustees, to whom we submit financial reports every quarter. We also have two Board committees who take responsibility for our finances. The Finance and Audit Committee is responsible for ensuring our finances are legally compliant and in line with the policies set by the Board. The Remuneration Committee is responsible for salary setting and other HR matters. You can find out more about our Board of Trustees and how it governs our activities here.
We aim to be as financially efficient as possible in all our activities. We have no overseas offices and we work through partnerships to deliver our work. We have a committed team of volunteers whose contribution we estimate as equivalent to two full time members of staff.
Our Reserves Policy
Our Reserves Policy is agreed annually by the Trustees.
Our current target for free reserves is £450,000. At the end of 2015 free reserves were £269,712 after taking into account our pension liability of £267,000 as required by the new accounting practices introduced in 2015. You can find out more about this on page 12 of our Trustees Report and Accounts 2015.
Our supporter promise
We couldn’t do the work we do without the support of all our generous donors. We appreciate their support and we promise to use their money responsibly and in accordance with our charitable objectives. That is why we have published our Supporter Promise which you can find here.