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Five years at a glance: A review

Our net result shows a surplus of $27.3 million – $12m less than last year. Blood Service continued to account for the majority of the surplus (nearly 96%) with a surplus from the Main Operating Program, an increase in blood and blood product inventories and an actuarial gain on retirement obligations. Humanitarian Services accounted for the remaining 4%, being income received in advance as part of government grants.

Our total income for 2013 (including the Blood Service*, which is fully funded by Australian Governments) was $1,023.8 million. Year on year income levels have increased significantly over recent years, with 2009 being an exception due to the significant level of funding raised in support of people and communities affected by the Victorian Bushfires.

Humanitarian Services income for everyday work (excluding the Blood Service and emergency appeals) has grown significantly from $195 million in 2009 to $429 million in 2013. This has been driven by increased Government Grants (a significant portion of which are for our migration support programs) and strong growth in Community Support.

Over the past two years, we have increased investment in regular giving to support funding for everyday work, now and into the future. Over 40% of all community support now comes via regular monthly giving, up from 25% in 2009. Almost $30 million was donated by this supporter group over the year, a significant lift from the $10 million plus income raised by 38,000 regular givers in 2009. At the end of June there were around 107,000 regular monthly givers.

The Community Support for Emergency and Disaster Appeals fluctuates depending on need and this year, we launched appeals in response to the Queensland floods, Tasmanian bushfires, and the humanitarian crisis in Syria. We will continue to work with Australian governments to help our communities recover from these local disasters, and local and international Red Cross staff and volunteers are providing relief in the most needed areas of Syria. Fundraising income and costs vary substantially depending on the level of Disaster Appeal income.

There were fewer international emergencies this year seeking support from the Australian community. However, we continue to respond to emergencies from previous years at a pace determined by the local communities affected.

Although our Commercial Operations have experienced difficult market conditions over the past three years, cost saving initiatives have been put in place this year to minimise the impact on our net income. Overall, commercial activities continued to raise necessary funds to underpin our work.

Administration costs have significantly decreased over the past five years, which reflects the efficiency gains from restructures within the organisation as well as overhead cost recoveries from government-funded programs. Similarly, restructures in our Marketing and Fundraising teams and changed strategies used to deliver fundraising have also led to greater efficiencies and reductions in our cost levels. Significant investments have been made in IT infrastructure with the expectation of further increased value and reduced costs in the future.

  2013 2012 2011 2010 2009
  $,000 $,000 $,000 $,000 $,000
Financial Results
Blood Service 1 574,587 578,461 567,471 574,207 456,491
Government Grants 2 288,804 217,663 115,086 80,072 91,983
Community Support - for everyday work 75,579 56,729 53,677 47,628 38,829
Community Support - for emergency appeals 20,186 4,102 55,586 21,173 376,096
Commercial Operations 33,498 34,336 34,766 36,664 37,187
Government Grants for Commercial Operations 15,590 17,074 14,094 8,833 6,627
Other income 5 15,546 46,567 24,913 28,896 20,298
Total income 1,023,790 954,932 865,593 797,473 1,027,511
Blood Service 548,363 539,317 465,798 474,248 418,658
Domestic programs 315,401 223,754 121,981 93,837 111,218
International programs 34,344 28,620 17,716 17,116 19,110
Emergency Appeals 3 14,630 31,439 53,149 32,989 404,546
Commercial Operations 4 46,052 47,753 49,988 43,404 27,725
Fundraising Costs 6 15,864 15,965 14,880 12,600 16,563
Marketing 3,353 5,981 6,356 6,170 5,066
Administration 18,461 22,694 19,482 23,822 32,059
Total expenditure 996,468 915,523 749,350 704,186 1,034,945
Surplus/ (Deficit) 27,322 39,409 116,243 93,287 (7,434)
Cost of Fundraising including Disaster Appeals 17% 26% 14% 18% 4%
Cost of Fundraising excluding Disaster Appeals 21% 28% 28% 26% 43%
Cost of Administration 4% 6% 7% 10% 5%
Program Investment Ratio without Emergencies 78% 67% 49% 48% 21%

1 Blood Service includes Capital Works of $52m in 2013, $60m in 2012, $79.3m in 2011 and $90m in 2010.

2 Government Grants excludes Blood Service and Commercial Operations - shown separately.

3 Emergency Appeals includes Domestic and International Appeals.

4 Commercial Operations includes Red Cross College, Red Cross products and Retail.

5 Other income includes investment income

6 Fundraising costs include costs for raising revenue and in-kind support from public, government and non-government grants.

* The Blood Service is fully funded by Australian governments and financial accounts are produced separately. For further information, the annual report and full financial report can be obtained at