2010 annual report and accounts - PDF 700KB - RAF Benevolent ...

Trustees’ Report continuedExternal Grants• Donations were made to other charities and organisations(including RAF stations) which provided specialist support tomembers of the RAF family. During the year, 85 applicationswere approved at a cost of £2.7m; further details are containedat the end of this report. We estimate that this money directlysupported 43,033 members of the RAF family.Marketing Activities• Fundraising income amounted to £12.0m in return for aninvestment of £2.5m, reflecting a cost-to-income ratio of 1:5.• Specific investment in direct marketing activity resulted in theacquisition of 6,000 new supporters.• Regional fundraising activity included the appointment of 26 RAFBFchampions on RAF stations to support our fundraising and raise ourprofile among the serving community.• Press and public relations coverage increased by 51% over 2009 andresulted in the Charity achieving a ranking of 50th position in the Top100 Charity Brand Index, a recognized benchmark of the public’s mostrecognized and trusted charities.• Two receptions were held at the House of Commons as part of theFund’s aim to build greater parliamentary engagement with allmainstream political parties.• Several meetings were held between Regional Directors and their localMembers of Parliament to increase awareness of the Fund and itscharitable activities.Plans for Future Periods• Provide core welfare support to our traditional beneficiary base• Promote special welfare initiatives• Develop an internal communications strategy• Review the arrangements for attracting and managingfundraising income and expenditure• Effectively generate income• Promote the Fund’s brand and image• Oversee the redevelopment of 67 Portland Place• Introduce new business systems supporting the Fund’s welfareand fundraising activities, including the promotion of electronicdocument management• Manage the Fund’s finances to reduce deficit spending• Review the Fund’s investment strategy.Office RedevelopmentWork to redevelop our permanent offices at 67 Portland Place continuedthroughout the year and remained on time and on budget. We hope tomove back to the refurbished building by January 2012.StaffThe Trustees continue to be grateful to all members of staff, particularlyduring a period of turbulence surrounding the redevelopment of theFund’s existing offices.Despite this, the results of a Staff Opinion Survey conducted in 2010showed the Fund as an employer of choice and placed it in the topquartile of the participating companies and organisations for engagingwith their employees.The Fund continually reviews the level of remuneration and otherbenefits awarded to staff. These include encouragement and supportto undertake training and development for the benefit of both the Fundand individual employees.Working with OthersThe majority of the Fund’s work involves making grants to beneficiaries,invariably through intermediaries. These include the personnel andcommunity support staff on RAF stations and other charities whoundertake casework on our behalf. The latter includes SSAFA ForcesHelp, The Royal British Legion, RAFA and other charities. The Fundis indebted to everyone who acts as a link between the Charity andits beneficiaries.In addition to casework support, the Fund works increasingly closelywith RAF community support staff at HQ Air Command, RAFA and otherRAF and Service related charities, including The Royal British Legion andSSAFA-FH, Citizens Advice, Relate and other charitable organisations.This degree of cooperation leads to greater efficiency and economyof effort and is a key feature of the Fund’s strategic development.VolunteersThe Trustees recognise the valuable contribution made by volunteersand wish to place on record their grateful thanks for the commitmentand support the Fund receives. Volunteers include the case workersand helpers who act as the link between beneficiaries and the Charity,those who undertake fundraising activities on behalf of the Fund, and thecommittees of volunteers who meet regularly to assess applications forwelfare support. No amounts are included in the financial statementsto reflect the value of work undertaken by volunteers.Investment Policy and ReturnsThe Fund’s investment strategy is to enhance the value of itsinvestments through the adoption of a managed, diversified portfolio.The Fund uses a ‘total return’ approach to measuring the performanceof its investments.The return on investments in a year is the investment incomegenerated and any capital gains or losses on the underlyinginvestments. The investment manager has been tasked to delivera return of at least RPI + 5% each year, over rolling five-year periods.In the shorter term, there is a secondary objective to outperforma composite benchmark of agreed indices.During 2010 the global financial markets continued to recover theground lost during the global financial crisis of 2008. The Fund’s portfolioachieved a return of 15.7%, against a secondary benchmark of 14.1%.10 The Heart of the RAF family