Oxfam GB sees income fall for second straight year

Oxfam GB saw annual income fall by over £32 million ($43.5 million) in the fiscal year ending March 2021, down to about £344 million, according to the organization’s annual report and accounts. The most significant hit to its income came largely from disruption to Oxfam’s trading arm. The organization operates hundreds of shops, which were forced to close for most of the financial year due to COVID-19. Retail income fell to £39.4 million, down from £93.5 million in the prior fiscal year. As a result, Oxfam has had to dig into its reserves, which plunged from £40.7 million to £19.2 million across the 12-month period. Staff numbers fell by just over 500 to 4,145 full-time equivalent roles, with more than 1,800 staffers furloughed at some point during the year. What happens now? This is the second year of falling income for Oxfam GB. Its income peaked at £434 million in the fiscal year ending March 2019, before declining to £376 million in the fiscal year ending in 2020. Oxfam went through a restructuring exercise that year, which cut £16 million from its cost base. It intends to cut another £5.6 million ($7.6 million) starting in April 2022. A financial recovery plan is in place, aiming to grow income from retail and fundraising, and the organization said it has been working. “During 2021/22 to date, the financial recovery plan is on track, with unrestricted income on budget and cost savings yielding significant savings,” the annual report said. “This means that the trustees’ plan to rebuild general reserves are on track.” Oxfam also said it intends to change which countries it works in. It runs full programs in 66 nations currently but will only have a physical presence in 48 going forward.