Our finances

Our finances

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 2016 income and how we spend every pound. If you would like to read our full accounts, you can download Trustees’ Report and Accounts. To read about our accomplishments in 2016 please view our Annual Review.

Income and expenditure

In 2016 cash donations for the year totalled £2,168,790. In 2016, we continued our commitment to
maintaining a diverse funding picture, investing in our fundraising team and in fundraising activities, particularly through our individual giving programme which in 2016 accounted for a significant portion of our overall income.

Though we cannot name them all individually here, we would like to thank all of our supporters for their continued commitment to our work.

We would also like to thank those in the UK publishing and book trade who make such generous donations of new books, without which our work could not continue. In 2016, the estimated value of these books as gifts-in-kind rose to £13,291,621, an increase of £985,212 on 2015.

Combined, our cash income and the value of the books we received was £15,460,412.

Our cash expenditure was £1,834,273, of which £546,408 was spent on raising funds, £1,262,475 was spent on charitable activities and £25,390 was spent on pension costs and governance. The value of the donated books we sent was £10,550,433, so our total expenditure was £12,384,706.

How we spend every Pound

 

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, and our current target for free reserves is £450,000. We are currently maintaining reserves at above this target level to ensure stability in the event of unforeseen financial challenges.

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.

You may also like

Read our Trustees' Annual Report and Accounts
Read more >
Find out more about our work in our Annual Review
Read more >
Our promise to you on how we will use your donations
Read more >