30.06.2020 Views

SLSNZ Strategy - 2019-20 Three year summary v2.1

Our direction...

Our direction...

SHOW MORE
SHOW LESS

You also want an ePaper? Increase the reach of your titles

YUMPU automatically turns print PDFs into web optimized ePapers that Google loves.

significant downsizing in this revenue stream at that late stage of the <strong>year</strong> is potentially<br />

catastrophic.<br />

<br />

Base revenues are well below what they were 7-8 <strong>year</strong>s ago, driven by a drop in gaming-sourced<br />

grant revenue<br />

Year Revenue<br />

<strong>20</strong>10/11 $10.545m<br />

<strong>20</strong>11/12 $10.431m<br />

<strong>20</strong>12/13 $9.515m<br />

<strong>20</strong>13/14 $9.412m<br />

<strong>20</strong>14/15 $9.087m<br />

<strong>20</strong>15/16 $8.855m<br />

<strong>20</strong>16/17# $8.542m<br />

<strong>20</strong>17/18* $8.613m<br />

# Excludes one-off $1m grant from Infinity Foundation.<br />

* Excludes one offs of $459k from BP 50 th celebration, $175k from TSB rebrand and $615k NZLGB bonus.<br />

Since <strong>20</strong>10/11 base revenue has dropped some $1.9 million (18%).<br />

Grant income outside of NZLGB and WSNZ in <strong>20</strong>11/12 was $1.659 million, mostly from gamingrelated<br />

sources. By <strong>20</strong>17/18, is down to $673,000, almost $1 million less.<br />

While commercial sponsorships can fill the gap, these too are vulnerable. The $1 million per <strong>year</strong><br />

State Insurance sponsorship that started in <strong>20</strong>10/11 lasted for 6 <strong>year</strong>s but left a massive gap<br />

when it ended.<br />

Fundraising activities have had to be refocussed as traditional sources of funding (such as<br />

running lotteries, street collections) have struggled with increasing competition for the donor<br />

dollar. Despite these changes, <strong>SLSNZ</strong> has still gone backwards.<br />

All the work done to grow other sources of revenue in the meantime has not been able to fill<br />

these gaps. Revenue has slipped backwards and the organisation has had to downsize and<br />

embrace the mantra of ‘doing more with less’.<br />

<br />

Operational costs continue to escalate, for example insurance. Driven by earthquakes in<br />

Christchurch and Kaikoura the cost of insuring clubs lifesaving assets (over $110 million) across<br />

New Zealand has gone from under $<strong>20</strong>0,000 per annum before the earthquakes to over<br />

$700,000 for <strong>20</strong>18/19, resulting in diversion of more NZLGB funding into this and asking clubs to<br />

pay an increasing share of these costs.<br />

The financial priorities for <strong>SLSNZ</strong> are very simple:<br />

Security and certainty – removing the huge reliance on short term funding.<br />

Stopping the slide and returning the quantum of revenue to previous levels.<br />

Building a balance sheet with reserves that can better sustain the organisation if a major funding<br />

shock was to occur. In this regard the objective remains a simple one – to as quickly as<br />

possible build <strong>SLSNZ</strong> working capital to a level of $3.0 million (approx. 4 months<br />

expenditure).<br />

Surf Life Saving New Zealand Pelorus Trust Sports House, 93 Hutt Park Road, Seaview, Lower Hutt, Wellington 5010<br />

PO Box 39129, Wellington Mail Centre, Lower Hutt 5045. www.surflifesaving.org.nz

Hooray! Your file is uploaded and ready to be published.

Saved successfully!

Ooh no, something went wrong!