By the numbers

Our finances

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.

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Revenue – where our support comes from


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This year represented the final year of an aspirational five-year growth strategy. The strategy also included a target to attain a balanced 50:50 revenue portfolio between grants and public income; this means we aimed to derive half our revenue from grants, and the other half from public income. Revenue growth has been impressive over the five-year period of the strategy at $13.9m or 28% 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.  Costs incurred in Australia (for program support, fundraising, community education, accountability and administration), were actually lower at the end of the five year strategy (2016: $17.6m) than they were at beginning (2012:$18.4m), ensuring that we maximise the proportion of funds spent on children’s programming.

Expenditure – how our resources were used

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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.

ProgramExpRatio

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.

CostRatio

What is it?

Accountability, administration and fundraising costs stated as a percentage of total revenue.  Accountability and administration costs include office facilities & rent, finance, I.T, people & 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 & 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.