Motivation Charitable Trust

Key data

Income£1.78m
Programme ratio 72%
Admin. expenses ratio 18%
Fundraising efficiency 11p

Output

~19,000 people provided aids and services, >28,000 people directly helped, >110,000 indirectly benefitted


Summary
Background
Activities
Input
Output
Impact
Risks
Outlook
Input


Motivation’s co-Executive Officers are David Constantine and Richard Frost. David’s early training was in agriculture. David has been a wheelchair user since a diving accident in 1982. After his accident, he trained in computing and accountancy, then worked in computer programming with IBM before studying at the Royal College of Art. Richard Frost has an accounting and finance background and gained his professional experience with Coopers & Lybrand. 9 key staff have been with Motivation for over 12 years. Trustees include professionals with medical, legal, accountancy, design and fundraising experience.

Key Financials

Year end 31 Dec (£000s) 2004 2005 2006 2007 2008
Income
Project restricted income 1,316 1,919 2,205 1,278 1,650
Unrestricted income 264 355 344 500 300
Investment income 4 6 6 4 4
Total income 1,585 2,280 2,555 1,782 1,954
Expenses
Project expenses 1,194 1,761 2,401 1,401 1,450
Costs of generating funds 158 166 206 200 200
Administration expenses 170 198 163 349 280
Total expenses 1,523 2,125 2,770 1,950 1,930
Balance of project restricted funds 422 576 380 225 300
Reserves
 66 67 48 35 100
Number of employees
 45 58 63 29 32


Growth had been consistent until fundraising contract problems in 2007. A £300,000 institutional contract signed in late 2006 was subsequently altered and delayed by the funder to such an extent that Motivation’s management felt unwilling to comply with the new requirements. This partly explains the drop in restricted income, but it is also due to a weak fundraising team in place at the time (no longer with Motivation). As a result, programme income is being rebuilt. Prospects for growth and improved efficiency in 2008 and beyond are looking a little better. The charity’s reserves coverage has rather tight in 2006 and 2007. The current position and expectations for 2008 shows better coverage of costs, but still room for improvement.

Key ratios
2004 2005 2006 2007 2008
Proportion of restricted income 83% 84% 86% 72% 84%
Proportion of income used on projects 75% 77% 94% 79% 74%
Programme ratio 78% 83% 87% 72% 75%
Administration ratio 11% 9% 6% 18% 15%
Fundraising efficiency 10p 7p 8p 11p 10p
Reserve development -55% 2% -28% -27% 186%
Number of months of cost coverage 0.7 0.5 0.2 0.2 0.7
Development Ratings estimates

Country programme work varies annually but financial details are not given. Recently, Motivation has worked in Afghanistan, Ethiopia, India, Namibia, Nepal, Nigeria, Papua New Guinea, Romania, Sierra Leone, South Africa, Sri Lanka, Tanzania, Timor L’este, Turkey, Uganda, Zambia, and Zimbabwe.

In 2007, income was derived from the following sources: governmental agencies 27%, restricted funds from trusts and other charities 26%, voluntary individual and trust donations including Gift Aid 47%.

The tangible activities of mobility products & services plus the ‘economic empowerment’ work and capacity training make up 60% of charitable activities expenditure in 2007. The balance was spent on the more intangible activities of rights advocacy and community peer group training, etc.