Charity under pressure to break even

The Catholic children’s charity Cabrini is under pressure to balance its books after running at a loss for at least a decade.

Cabrini’s annual report, which was submitted to the Charity Commission last month, reveals that the charity spent £693,000 more than it made last year. This included £98,000 on redundancy payments and £40,000 on recruitment costs.

Cabrini, formerly the Catholic Children’s Society, has provided adoption, fostering and other services for more than 25,000 children in London and the south-east of England since  1887. It continues to work closely with the Dioceses of Arundel and Brighton, Portsmouth and Southwark and is supported by parish collections. In its 2013 report Cabrini said that returning the charity to a position of financial security by 2014/15 was its top priority, adding that it hoped to increase its fundraising income and increase its adoption placements and fostering services.

“The broader context for the new business plan has been the ongoing operating deficit generated by the organisation for the past 10-plus years,” it said. “Previous initiatives have not resulted in the required turnaround in the charity’s financial position.”

Chief executive Jonathan Pearce left in October 2013, 11 months after he was appointed and the charity is currently run by the interim chief executive, Hilary Brook.

The charity said in the report that the Government’s austerity measures, which resulted in public sector funding cuts, meant there had been no increase in funding for its residential care or community projects.

Cabrini had not been able to provide a comment by the time of going to press.