Review of the 2023-24 financial year

Strategic planning

This dual pressure of increasing costs and decreasing income requires us to be even more diligent in our financial management and strategic planning. We are seeking to balance ministry needs with prayerful stewardship of our resources, with two points to note.

Resourcing ministry through staff

We are committed to effectively resourcing CU leaders by placing excellent, well-trained and diverse staff on the ground. As a result, over the next two years we are committing to providing Staff Workers in key areas, exceeding our current income. This is a strategic decision to best serve university campuses, resulting in a budgeted deficit of £443,000, which will be funded from our reserves.

Developing partnerships

Secondly, over the next two years we are prioritising a strategy for developing existing relationships with our donors and prayerfully considering ways to develop new partnerships. This is vital as we work to reduce the gap between our income and expenditure to enable us to continue this work long-term. We are excited to play our part in helping students and recent graduates grow in the gift of giving, walking with them to establish healthy rhythms as they enter the workplace. We want to deepen our relationships with existing supporters and help all of our supporters to feel genuinely engaged with this exciting ministry amongst students. This will require an increase in personnel and resources as we seek to increase our income. We’re delighted to be welcoming a new Key Relationships Manager to the fundraising team, a first step in increasing personnel. We are prayerfully considering how we can continue to ensure we partner well with supporters to generate generosity.

Income

Overall

We have seen a decrease in our income compared to the previous year, attributed to two main factors; a decrease in contributions from trusts and a decline in legacy gifts. Our last financial year saw a seven-year high in legacy income. Despite this decline, we have much to be thankful for. We have been blessed with several legacy gifts this year and, although challenging to predict, the generosity of supporters in their wills is deeply cherished and enables us to continue our work.

Individual donors

Our largest source of income (57%) comes from individuals. The generosity of so many continues to be a real encouragement, and this faithful support enables us to continue working alongside CUs whilst also seeking to increase our income.

Staff support

Just under half of our income from individual donors is raised through the support raising efforts of our Staff Workers, each bringing on board a group of financial donors and blessing the ministry as a result. We did have several Staff Worker vacancies (over 2023-24 academic year), which reduced the level of donations through staff support. We’re thankful for the fundraising efforts of the 19 new Staff Workers who join us this summer, and the ongoing financial support through all of our staff is a critical and valued source of income.

Trusts, Churches and Legacies

Donations from trusts and churches that partner with us constitute 25% of our income. We are immensely grateful not only for their financial support but also for the many practical ways in which churches partner with us, working alongside UCCF staff and supporting CU students in sharing the gospel. It’s a joy to work in partnership with the local church.

Although legacies decreased year on year, we are immensely grateful for the legacy gifts that we did receive. Legacies are challenging to predict but are deeply cherished when they come in, enabling us to continue our work in a powerful way.

Expenditure

Staff costs

We remain convinced that CUs are most effective when led by students themselves. We’re committed to equipping students for missions, both through training and resources, as well as the provision of our staff to support CUs. As a result, a large portion of our expenditure is spent on staffing costs; investing in our staff is crucial as they play a vital role in transforming students’ lives each year.

This year, staffing costs made up 70% of our expenses. The year included a pay raise for all staff equivalent to a 5% raise for junior staff members to help provide financial security and continued ministry effectiveness. Despite this pay increase, staff vacancies meant we didn’t see an increase in staff costs. We aim to manage these vacancies and recruit into high-priority mission areas with excellent and diverse staff. We’re thankful for a large number of staff joining the team this summer (August 2024), each ready to come alongside and equip students for mission.

As part of our commitment to resourcing CUs, during the last academic year we carried out around 20 training events throughout the UK, training over 2,000 student leaders. These are invaluable events, and the direct costs, make up around 7% of our expenditure.

Governance

You will note that our governance costs were higher this year, due to one-off costs for the independent investigation into our employment practices. The cost of this investigation and associated legal fees were necessary and deliberate in order to conduct a rigorous review and determine effective next steps. We have continued to work through these steps and remain committed to transparency and accountability.