ONE OF the largest charities in the United Kingdom, the Royal Society for the Protection of Birds, has had to transfer almost £2 million of its income in order to fill a gap in its staff pension fund, writes Andrew Arbuckle, farming editor.

The move, reported in its annual accounts, confirms that this will not eliminate the deficit in this account, only that it will help to reduce it.

Yesterday, Alan Sharpe, the RSPB financial director, said that moves were afoot to address the problem that had been brought about by falls in the stock market.

The 1000-plus staff of the RSPB were now being consulted on a scheme which would aim to put 6% of annual salary into the pension fund with 4% of this coming from the employers and the balance from the employees.

Mr Sharpe said he hoped the new scheme would be in place for the start of the financial year in April 2004 but said that it would be flexible in future years dependant on the state of the pension fund which has between £30 and £35 million of assets.

The income of the society which has more than one million members, rose dramatically last year by 21% to almost £60 million. Within that total, subscriptions accounted for £22 million, legacies £21 million—which is a rise of £4 million on the previous year—and grants also rose from £7.5 million to £10.5 million.

Recurring expenditure took some £47.8 million with species conservation costing £20 million and the management of the 180 nature reserves owned by the RSPB taking another £14.5 million. Other major areas of expenditure were almost £5 million on educational projects and £4.7 million on membership services.

In contrast with some expensively run charities, the RSPB only uses 6% of its income in management and administration.

Last year, the charity spent 11% of its income, or £6 million, on capital projects on its reserves. This includes the purchase of Revack woodland adjacent to an existing reserve at Abernethy forest and the 4500-acre Kinnabus estate on Islay. The scale of land now owned by the RSPB is vast and last year, it recorded some £1.2 million of income from its farms.

While, the balance sheet indicates £58 million-worth of nature reserves, Mr Sharpe said this figure was based on the historic cost of the land and not on current value. But, then he asked, “if you buy farm land and then flood it, does it reduce or increase its cost.”

While the RSPB income puts it in the top four or five charitable organisations in the United Kingdom, Mr Sharpe, described the margins between income and expenditure as being “extremely small.” The free reserves of the organisation, at around £13.5 million, would only allow around three or four months work if income dried up.

However, he pointed out that the RSPB had a very loyal membership with more than 90% of subscribers annually renewing their fees.