Pennies - Todays Charity for Review .... | AccountingWEB

Pennies - Todays Charity for Review ....

Pennies - The Electronic Charity Box -

Of course all methods of helping those in need are to be applauded - however, just for the moment let's stop and take a look at this one

We all know that charity is big business and this one has all the all the hallmarks of becomming one of the biggest in the time and potentially a 'nice little earner' for those involved. The roll call of supporters together those involved is impressive and that is what these things are all about !

Nevertheless, taking the stated aim as the goal of:
'.. 100 retail partners by the end of 2015 yielding as much as £43 million a year for UK charities ..'

'.. we will move to a self-sustaining model where we retain 5% of donations for Pennies' operational costs ..'

Yes, that is 5% of the take goes to Pennies for acting as middleman - i.e. £2,150,000 to operate - mmmm ..... So by 2015 is it going to be bumper salaries all round ?

(for those of us with long memories the business equivalent of this was termed 'salami-slicing', but essentially this has now been legitimised)

Starting with the charity commission

Compare these:

Accounts - y/e November 2009 -

Accounts - y/e November 2010 -

Have a look at the following:

Incoming resources £1,147,072 (say £971,792 after donated services)

Staff costs £205,491 (17.9% of incoming resources)

No employee earned more that £60,000 during the year (which means that someone does ear this; from previous year when £0 was reported)

Total funds carried forward £677,290

Now here is the interesting one - Charitable activities £508,864

Note 3:

Grants actually made = £10,138

Hang on - are we actually saying is that out of total income (all forms) of £1,147,072 they handed out £10,138 and the rest was either eaten up in costs or reserves

Could someone please explain how this fulfils the charity mandate by any known benchmarks

Of course this may have been incorrectly interpreted, however, if this is the situation then what is going on ?

One for the Charity Commission to investigate ?

ShirleyM's picture

extremely good %

ShirleyM | | Permalink

I cannot back up my figures, but I would have thought that a maximum 5% of funds towards administration was a pretty good deal compared to most of the larger charities.

It is the opposite way with many so called charities, where only 5% gets to where it can do the most good.

I don't have figures to back this up, but just look at a pack of charity xmas cards which tells you how much of your money gets spent on charitable works (and please don't get me started on the RSPCA ... one of the richest charities we have, whose 'rescue centres' have to be self funded by local fundraisers, and they also have to pay the RSPCA about £15K on top for the 'privilege' of maintaining the RSPCA's expensive headquarters and other extravagances. In reality, the rescue centres fund the RSPCA, and it isn't the RSPCA funding the rescue centres, as they would have us believe).


Old Greying Accountant's picture

Aside from ...

Old Greying Acc... | | Permalink

... the fact the RSPCA gets actively involved in political issues that increase revenues, such as fox hunting, but sit on their hands over issues such as these:

The RSPB is another, with their lunatic drive to reinstate the sea eagle and their prediliction for sexy raptors whilst the song birds are steadily erradicated from our fields and hedgerows!

Marion Hayes's picture


Marion Hayes | | Permalink

Don't get me started - least said the better except that they have not got the expertise to deal with large animals - all equine cases should be referred to World Horse Welfare - previously ILPH who were responsible for organising the massive rescue in Amersham. Most of the horses were cared for by themselves and Redwings but RSPCA took credit.

If you have to donate to RSPCA please ring fence the donation - if you say it is for a specific purposes they have to use it that way and not to support their political aspirations

ShirleyM's picture

HAPPA is very good at responding to reports

ShirleyM | | Permalink

They have an inspector in our area, and, to the best of my knowledge, have never failed to respond to a report of cruelty or neglect regarding an equine, unlike the RSPCA.

Like ILPH & Redwings ... they do what it says on the tin! They actually care about the animals.

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