| Organisation Name | Sample Charity Organization | Financial Year End | 2023 |
| Organisation Type | Charity | Date Generated | 15 January 2024 |
| Legal Form | Charitable Incorporated Organisation | Time Generated | 10:30 AM |
| Prepared By | John Smith |
| Year | |||
|---|---|---|---|
| 2021 | 2022 | 2023 | |
| Sources | Total (£) | Total (£) | Total (£) |
| Turnover | - | - | - |
| Other operating income and interest receivable | - | - | - |
| Profit/(loss) on ordinary activities before tax | - | - | - |
| Bank balance / (Overdraft) | 180,000 | 200,000 | 250,000 |
| Other reserves | - | - | - |
| Profit & loss account | - | - | - |
| 2021 | 2022 | 2023 | |
|---|---|---|---|
| Year on year change (income) | 5% | 10% | 15.2% |
| Percentage of earned income | 18.5% | 22% | 25.5% |
| Margin -surplus or (deficit) | 4.2% | 6.5% | 8.3% |
| Bank balance as % of total reserves | 8.5% | 10.2% | 12.5% |
| Profit and Loss reserve as % of total reserves | 0% | 0% | 0% |
| Profit and Loss reserve as % of total income | 0% | 0% | 0% |
| Staff costs as a % of income | 70.2% | 68% | 65.4% |
| Liquidity | Overall liquidity looks positive, however a question to explore is whether this due to any one-off issues |
| Margin | The organisation has made a surplus. Whilst this is a positive indicator it does need to be in line with organisational plans and objectives i.e. was this expected. |
| Earned Income | There is a reasonable level of earned income, although it would be important to understand longer term aims and plans. |
| Profit & Loss reserves as % of total income | No rating available |
| Bank Balance as % of total reserves | The bank balance looks strong, however a question is whether the organisation is making best use of its resources. |
| Income growth | There has been strong income growth, however it is important that there has been effective organisational development and control. |
| Staff costs | Staff costs are moderate but should be monitored. |
| Quick overall analysis rating | 2023 |
Whilst it is important to see the overall position, as there is at least one individual red indicator in the latest year, then the underlying reasons should be understood to see if it is a concern or not.
| BENCHMARKS | ||||
|---|---|---|---|---|
| Benchmarks | ||||
| Less than | Up to | Above | ||
| Year on year change (income) | This shows the growth (or decline) in the income of the organisation and can demonstrate how the organisation is changing. A significant decline in income may show a significant warning, unless it is a proper strategically controlled reduction. Equally a major expansion may indicate the need to check that the organisation has developed its internal structure to support expansion, otherwise this could lead to cashflow and viability problems. | 0% | 5% | 5% |
| Percentage of earned income | This includes trading income, contracts, investment income and rental income. This measure shows the degree of independence and can be an indicator of sustainability. | 10% | 50% | 50% |
| Margin surplus or deficit | This is the annual profit or loss and gives an indication of its ability to cover its costs, financial control and its sustainability. | 0% | 5% | 5% |
| Liquidity | This is a ratio of an organisation's short term assets (mainly cash and debtors) and its short term liabilities (i.e. creditors). A ratio of 1 means that it just about meets its current obligations whilst below 1 means it has liquidity problems. The higher the ratio the better. | 1.00 | 1.50 | 1.50 |
| Bank balance as % of total reserves | This shows the level of cash an organisation has in relation to its total reserves. Low or negative levels may indicate problems, although the detail needs to be understood. Generally higher levels are better but very high levels could indicate that the organisation is not maximising its return (financial or social) on its assets. | 5% | 15% | 15% |
| Unrestricted reserves as % of total income | This is the proportion of unrestricted reserves compared to total reserves. The higher this proportion the greater independence and control the organisation will have on the use of the reserves. A negative % is a real danger. | 20% | 40% | 40% |
| Unrestricted reserves as a % of income | This gives an indication of the independence of the organisation and its resilience in being able to cope with changing funding sources. For example an organisation with a very low % may have a significant amount of earned income but could have high costs and may be cross subsidizing restricted activities. The higher the % the better. | 15% | 25% | 25% |
| Staff costs as a % of income | This gives an indication of the sustainability of the staff costs and the overal cost base more generally within the organisation. Generally staff costs above 80% are unsustainable, although understanding the specific reasons is important. Whilst less than 55% may be seenas positive, it too must also be understood as sometimes if staff costs are too low then it could indicate a lack of capacity or staffing, or in other cases may relate to the specific business model; for example property management companies will typically have a ratio closer to 30%. | 75% | 75% | 55% |