Our income for this accounting period is £3.69m, which is comprised of income from the levy of £3.07m (c.83% of total income) and £523k from the registration of small charities and non-charity organisations engaged in fundraising, along with £74k of interest. This compares to a total income of £2.86m last year. 

We incurred expenses of £3.60m (£3.31m in 2023/24). As a result, our reserves have increased to £1.72m (£1.60m in 2023/24). 

We planned to operate a deficit budget for the year of £292k. However, income was higher than planned whilst expenditure came in on budget resulting in a small surplus against budget. Our expenditure is set out in further detail in section four of this report. Some expenditure requires further explanation owing to the year-on-year changes. 

Note 6 of the accounts classifies operating expenditure into a number of cost headings. This year the Fundraising Regulator 
moved into their new office which included a lease reduction on the initial rent period. Increases in expenditure, particularly in recruitment costs in relation to appointing seven new board members of which some will start in the next financial year. Our workforce has increased from 32 to 37 owing to increasing complexities in the fundraising sector. The initiation of business systems improvement projects accounts for the other variances.

We maintain a system of risk management. Significant risks are reported in a register, which is regularly monitored and reviewed by the senior management team and Finance, Audit and Risk Committee. The board also discusses the risk register at least twice a year. Mitigation is applied to emerging risks to reduce the likelihood of the risk crystallising and its impact being realised. This year, a particular concern has been around the risks posed by cyber-attacks. To mitigate this risk and improve our resilience we have been audited against the Cyber Essentials Plus standard. 

Our biggest long-term risk remains funding. Despite an increase in the number of charities paying the levy and registering over the past four years, the voluntary nature of the levy means we cannot predict accurately how many organisations will contribute each year and the speed at which this happens. Positively, charities have so far shown their willingness to continue funding the regulator to maintain our activities and it is clear that most regard funding the regulator as an important and necessary cost of business.