It’s Retail to the Rescue, with Vinnies Shops Expected Flourish in FY23

Over the next financial year, the Society is projecting 20% growth in income, worth $32 million, to bring our total revenue to over $190 million. The most important sources of income will be retail sales (44%), government funding (25%) and fundraising (17%).

These figures show the importance of our retail network as a source of revenue. Our shops have shown tremendous resilience, bouncing back well after being forced to close during the worst days of the COVID-19 pandemic. In FY23, they are expected to deliver $85.7 million in revenue, an increase of 3.9% from the previous year’s budget. A large portion of this growth in income is expected to flow from new initiatives, including seven new shops. Fundraising events like the CEO Sleepout, community sleepouts and our various appeals will also continue to be vital sources of income as we work to alleviate poverty and suffering.

While total employee expenses amount to about 60% of the Society’s budget, the vast majority of employee expenses (73%) are either externally funded or relate to roles that are directly involved in generating our projected $190 million-plus annual revenue.

Operating expenses will be the second largest expense at 24% and include rent, utilities, subscriptions, IT costs, motor vehicles and travel. Client support expenses are expected to account for 16% of total costs ($15.8 million) over the next financial year. This represents an increase of $1.4 million on the 2022 financial year forecast, as member assistance is likely to return to pre-pandemic levels. This does not include disaster relief and recovery.

Of the $50 million worth of government funding the Society will receive, most will be dispersed to our Housing and Homelessness, Health, and Disability and Inclusion portfolios, as well as membership. This won’t cover all expenses incurred by these areas, and the Society will continue to draw on income generated from other sources.

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