By the numbers

Our finances

Year in review

This year represented another strong year for Plan International Australia’s revenue performance. Having bounced back from a modest 2016, this year our revenue reached the second highest in five years. This was on the back of some large exceptional items such as a significant growth in our World Food Programme food distribution portfolio due to the South Sudan Famine, a strong response to our South Sudan Emergency appeal and a solid corporate and bequest performance. This is considered a strong performance within an environment experiencing cuts to the Australian Government’s foreign aid budget and challenging conditions in the public fundraising market, particularly in the direct acquisition channel (face-to-face sign ups). 

In response to this environment, we continued to work on improving our efficiency whilst also acknowledging the need to increase our in-house capability to cater for the growing digital market. The upscaling in the World Food Programme food distribution portfolio has pushed our program expenditure to a five year new high as illustrated by our program expenditure ratio (Funds sent overseas, plus project support costs and community engagement costs incurred in Australia, stated as a percentage of total revenue).  

Costs incurred in Australia (for program support, fundraising, community education, accountability and administration) returned to the 2015 level, which corresponds with the increased level of revenue. This year we brought our digital capability in-house and invested in a new Digital team with the view this investment will yield rewards in the long term.

Revenue

Where our support comes from

Revenue by source

5 year revenue trend by source

This year marked the first year of a new three-year corporate strategy. The strategy continues to focus on the balanced growth of the revenue portfolio between grants and public income. The last five-year strategy saw an impressive revenue growth at $14.3m or 27% and we achieved a balanced revenue portfolio, allowing us to reach a greater number of children through new sources of revenue and minimise the risk of being too reliant on one source of funding. The new strategy builds on this and further identifies the importance of digitisation across all key areas. Costs incurred in Australia (for program support, fundraising, community education, accountability and administration), were only marginally higher at the end of the five year strategy (2017: $19.4m) than they were at beginning (2012: $18.4m), whilst revenue grew by almost one third hence ensuring that we maximise the leverage on the proportion of funds spent on children’s programming.

Expenditure

How our resources were used

Expenditure percentage of revenue

5 year expenditure

Key ratios 

Plan International Australia aims to maximise expenditure on programming and minimise expenditure on fundraising and administration. We acknowledge that fundraising and administration expenditure is essential to ensure future programs can be funded, our supporter base can be maintained and that both can be supported adequately with appropriate systems and infrastructure.

There are two performance ratios that capture these commitments — the Program Expenditure Ratio and the Cost Ratio.

The Program Expenditure Ratio has increased over each of the last three years, indicating that Plan International Australia is providing more of its revenue towards programs for children. The Cost Ratio has declined over the last three years, indicating that Plan International Australia is becoming more efficient - spending less on support services for programs, and raising new public funds at a lower cost. 

Plan International Australia is providing more of its revenue towards programs for children.

What is it?

Funds sent overseas, plus project support costs and community engagement costs incurred in Australia, stated as a percentage of total revenue.

What does it tell us?

This ratio shows what proportion of Plan International Australia’s revenue is being used to support international programs and also includes program support costs incurred in Australia relating to design, management and quality assurance of projects and costs incurred within Australia relating to educating the Australian community on international development issues.

What is it?

Accountability, administration and fundraising costs stated as a percentage of total revenue.  Accountability and administration costs include office facilities and rent, finance, Information Technology, people and culture, audit costs, depreciation and all insurance costs.  Fundraising costs include promotional and marketing campaigns, payments to third party fundraisers, cost of staff involved in marketing and fundraising, production of mailing and fundraising materials, and donation-related bank fees.

What does it tell us?

This ratio shows what proportion of Plan International Australia’s revenue is being used to provide support services and fundraising activities. 

All businesses require support services to operate which may not be directly attributable to revenue generation. Plan International Australia attempts to minimise these costs whilst ensuring adequate support and facilities to maximise our impact for children.  Additionally, Plan International Australia must spend money for fundraising purposes in order that it can maintain and grow its supporter base to provide funds for future international programs. 

Please note, the above ratios will not add to 100% because Plan International Australia will have made an accounting profit or loss during each year which should not be factored into these ratios.

Download a copy of our full financial statements.


< Keep reading our 2017 Annual Report