Recovering from the Pandemic: The Society’s Overall Financial Sustainability
After careful budgeting, the Society is projected to deliver a small $0.1 million surplus net operating budget in 2023 (excluding profit or loss on sale of properties, asset revaluations, Job Keeper, and Job Saver), assuming there are no further lockdowns or other restrictions. This will help ease the burden of the previous deficits, and ensure we move towards our goal of achieving financial sustainability. Overall, we are in a good position, as long as we continue to manage the budget carefully.
The last couple of years have, however, been challenging for the Society, especially due to the impact of lockdowns and restrictions associated with the ongoing COVID-19 pandemic. Many of our shops were closed for long periods of time affecting our key income stream, and we were unable to fundraise in our usual ways. At the same time, some areas saw an increased demand for services and support because of the impact of the pandemic on already disadvantaged and marginalised peoples.
In the 2022 financial year, the Society budgeted for a small net deficit of $0.2 million and performed well for the months when we were not impacted by pandemic lockdowns. Lockdowns in NSW kept most of our shops and Container Deposit Scheme sites closed for up to three and a half months and the Society ultimately suffered a loss of revenue of $20 million. The latest forecast projects an operating deficit of $13.5m, including SVDP Housing, which represents a significant loss. Such losses were unfortunately a standard occurrence across the non-profit sector during this period and we are not unique.
‘Enterprise Sustainability’ is one of the priorities of the Society’s 2020-2023 Strategic Plan. Following the unavoidable losses over recent financial years, it’s important to ensure we have the means to continue to fulfill our mission and deliver the services and assistance people experiencing disadvantage need. Continued prudent financial management will be essential to our long-term viability.
Great, good to have some financial overview
Do we get to see a split of expenses and income and a balance sheet?
I am finding that there is increased feed back from people that know I am a member of St. Vincent De Paul’s Organisation that our prices in our shops has become to high for people to afford. I understand that we need to bring in funds to be able to support our work but turn over is the way most successful businesses would go I believe.
The thing that recently has encouraged me to give this feed back is when I was informed by the staff of our store that an elderly man had come in looking for cloths and shoes but left saying it has been a long time that he has been to a Vinnies shop and had left without being able to afford the things that he needed. The staff member who spoke to me was very concerned when I told her if she had come to a Conference Member that we could have helped him with his needs without charge but she did not
realise this.
The other thing is that people can go to other stores like Kmart and buy brand new things often cheaper than we are asking.
Vinnies is a very important part of my life and I don’t want people to have cause to speak negatively about us.
I feel that higher turn over with slightly lower price should eventually give greater profits in the long run, as there would be less unsold goods in our shops.
Unsold goods in our stores means help that we could given to the ones that need it the most, after all that is why the people of our regions donate in the first place.