Charity Annual Report and Accounts 2021-22

Risk management

The major risks for the charity have been identified and considered. They have been reviewed and systems established to mitigate those risks. The most significant risks are:

Identified risk

Consideration

Risk rating

COVID-19

LOW

Although restrictions have been lifted and we are now able to carry out all of our activities, income can still be affected when cases rise in the community as this causes participant numbers for events to drop. We will adhere to any new restrictions and guidelines that may be introduced and we remain vigilant and prepared to make changes when necessary.

Local partnerships and competition

HIGH

The Trust’s strategy involves working in partnership with a range of national charities which affords the organisation obvious financial and reputational benefits. However, it does present a substantial risk to the charity’s positioning and existing market share, as these competitor charities increase their fundraising efforts in the local community to support their projects and consequently raise their profile in the North West. This risk is even further heightened with the building of the new research centre, where The Christie is raising funds alongside Cancer Research UK and The University of Manchester. The ‘On site charity partner agreement’ has now been in place for over five years and has enabled us to remove any confusion around what other partner charities are able to do and not do on site. However, it is fitting for these partners to have their contribution recognised appropriately and proportionately and this is managed through the corporate development division. Legacy income represents one quarter of charitable funds received by The Christie. Each year the legacy income stream generates between £5-6million pounds worth of income. Currently, The Christie has a strong legacy pipeline of just over £7m. Historically legacy income has proven to be resilient in the face of major crisis, with a strong return on investment. Detailed analysis and continued reforecasting is employed to manage the unpredictability of legacy income. Proactive and sensitive legacy marketing is delivered to maximise long-term legacy income. Legacy income has been bolstered by the continued strong performance of house prices and financial assets, with the average value of a residual gift during 2021 increasing by around 6% to £63,800. The number of bequests to charities rose to 57,400 – an annual increase of 13.9%. While this growth is significant, it falls below expected levels, given the tragically elevated number of deaths during the pandemic. Over the next five years 2022 – 2026 UK legacy income will total £19.6bn, climbing to £23bn in the period 2027 – 2030. By 2030 UK charities will receive £5bn per year in legacy income from 146,000 charitable bequests. Based on the latest income review completed with sector analysts Legacy Foresight, The Christie’s income growth over the last 12 months is 15.1%.

MEDIUM

Legacy gifts

15