Year in review
This year represented another strong year for Plan International Australia’s revenue performance. Whilst this was the first year in five where revenue has not grown, this was against a backdrop of the prior 2015 year including some large exceptional items such as a number of disaster relief management projects funded by DFAT, a strong response to our Nepal Earthquake appeal and our best bequest performance on record. When considering those one-off items from last year, revenue of $63.3m (2015: $68.2m) represents 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 on the street).
In response to this environment, we deliberately controlled our costs in order to improve our efficiency compared to last year as measured 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) actually reduced by 9% or $1.7m, which represents a deliberate effort to minimise support costs and maximise funds provided to support children overseas.