Our second edition of Financial & Operating Ratios for Professional Bodiesreport is out now!
This unique report has been designed to help professional bodies evaluate their own performance relative to that of similar organisations in order to identify improvement opportunities.
Based on two years of financial and organisational data from over 260 professional bodies in the UK, this 123 page report is an important tool for planning, evaluating and directing the present and future of your organisation’s financial activities.
Overview of the report findings
This report takes an in-depth look at performance in the professional body sector in 2010 compared to 2009.
In general, professional bodies had a much better year in 2010 than in 2009, as may be expected given the change in global economic conditions; 2009 being arguably the low point in the current recession.
Our research shows that profit before gains and losses rose by 11% in 2010. More spectacularly, net profit changed from a substantial loss of over £0.5m per professional body, on average, to a reasonable profit of about a quarter of a million pounds per professional body.
The improvement was particularly evident in a recovery of income from advertising and sponsorship (11.6% increase on average) and good growth in income from member subscriptions and fees (9.1% increase on average). However, income earned in investment/interest was almost halved, and income from commercial activities and member services both declined by around 6%.
Part of the rise in income from member subscriptions and fees came from raising fees rather than getting more members, as membership rose by 1.3% on average compared to the 9% average rise in membership fees.
On the costs side, interestingly, professional bodies responded to the difficult economic climate by reducing their governance costs (by 4.2% on average). However, staff costs have risen, presumably to service the rise that there was in members; though some of those costs may include redundancy provisions.
In spite of the rise in income, the ratio of income to employees has fallen slightly. This is largely due to professional bodies employing two more FTEs on average.
As a further sign of the sector returning to health, the ratio of current assets to current liabilities more than doubled, from 3.6 to 8.4. Net profit as a percentage of total income switched from - 6% to 2% on average.
Find out more
For more information, visit this page on our website to view the Table of Contents and Introduction: