Income at the veterans charity Help for Heroes has stabilised after two years of decline, the latest figures show.
The charity’s annual accounts, for the year to the end of September 2022, show it recorded income of £18.9m, up slightly from £18.5m in the previous 12 months.
Income at the charity was £26.9m in 2018/19 and £24.4m in the following year.
Grants income dropped to £116,000 from £1.2m, but this was more than compensated for by a rise in legacy income from £9.5m to £10.5m and an increase in challenge and events income from £600,000 to £1.1m.
Help for Heroes’ fundraising costs increased from £6.8m in 2020/21 to £7.2m and the charity says it has designated £3.4m to develop its fundraising efforts over the next three to five years.
Its spending on charitable activities was down significantly year on year – from £29.6m in 2020/21 to £11.7m last year.
But the charity said this was due to a review of the value of its recovery centres that had bumped its recorded spending in 2020/21 by £17.2m. Adjusting for that amount, the equivalent figure in that year was £12.4m.
The accounts also say the charity made losses of £1.5m on its investments during the year.
“This was another turbulent year for investment with factors including uncertainties around inflation, the war in Ukraine and rising interest rates having an impact on the equities market, in which the majority of our investments are held,” says the annual report.
“Trustees monitor the performance of our investments and we consider our investments to be held for the long term. We are therefore optimistic that any decrease in the value of our investments will be reversed before any investments are disposed of.”
Help for Heroes made a gain of £3.8m from its investments the previous year.
The annual report notes that during the past year, the charity referred one serious incident to the Charity Commission but says that, after supplying the regulator with the outcome of its internal review, no further actions were required.
The accounts show an overall annual deficit of £1.5m.
The charity’s reserves held over £40.6m at the end of the year, enough to cover 12 to 24 months running costs, which the charity says is “above the range the trustees consider to be optimal”.
It says adjustments will be made where necessary to return the reserves to the target levels.
The annual report also pays homage to the charity’s co-founder, Bryn Parry, who died in April after being diagnosed with pancreatic cancer.
“Everyone at Help for Heroes is deeply saddened by the death of our co-founder Bryn Parry,” it says.
“Without Bryn, this charity wouldn’t be here. Bryn was instrumental in changing the focus of the nation and the way we regard both military service and wounded veterans.”