Overall gross income for the Society was $894 million, including $600 million for the Blood Service which is fully Government funded. Income for Australian Red Cross Humanitarian Services totalled $293.5 million, a $113.4 million reduction from the previous year. This largely reflects a $98 million decline in government funding for our migrant support services. Despite this reduction, government grants remain our single largest form of income, accounting for 53% of funds. We aim to reduce our reliance on the proportion of government funding in the long term and diversify and grow other sources of income.
To counter this reduction in government spending, we are calling on the community to support our work more than ever. The Australian public donated over $93 million this year ($86.8 million for our everyday work and $6.9 million for emergency appeals), a strong result driven by the continued growth of our regular giving program and the generosity of people who give regular, ongoing donations. This year we gained $23.2 million from the sale of goods, while our retail revenue also continues to grow. Overall, 40% of funds came through the Australian community and goods purchased.
This income is supplemented by substantial support of a non-financial nature, given to Red Cross in the form of volunteering, gifts in-kind, and pro bono services. While we do not place a dollar value on these priceless forms of support, without them our everyday work would not be possible.
All funding opportunities are assessed through internal review processes, to ensure that services funded are aligned with community need and Red Cross’ strategic direction. Thorough risk assessments are undertaken to ensure that our services remain viable and effective.
Community support for everyday work
Financial support given by individuals and the community for our everyday, non-disaster work totalled $86.8 million, reflecting the generosity of the Australian public. The largest source of community support for our everyday work continues to be regular, ongoing monthly contributions. These regular givers donated over $42 million, a small increase from last year. The overall proportion of our everyday work funded by regular giving remains unchanged at 49% (note that this does not include disaster appeals).
Another key group of supporters are people who thoughtfully leave a gift to Red Cross in their will. Bequests account for 15% of our income and this year provided over $12 million, a slight decrease from last year.
Almost two in every three dollars given by the community come from these regular givers and bequestors, highlighting the huge positive impact made by these groups of ordinary Australians.
We also received income from valued corporate partners, trusts and foundations, individuals making one-off donations, Red Cross members, and community groups. Donations for disaster appeals declined from last year as we sought funds for fewer major emergencies in Australia and the Asia-Pacific region.
Changes in government funding for our work
Of the $154.9 million received through government funding for our Humanitarian Services division (excluding the Blood Service), almost 93% was for contracted services to help people and communities in need. While government funding has decreased this year by $98 million (39%), the majority of this is due to the outcomes of a competitive tender process for the Status Resolution Support Service (SRSS) in our migration support programs. The result of that tender process and a progressively reducing client base in that program have resulted in a 62% reduction in funding. Grants to other areas of our work remained similar to last year, while our international aid and development work benefited from a $2.7 million (11%) increase in support.