How we're funded

The charity’s decision to change its business model during 2024/25 involved moving away from service contracts, which were increasingly failing to cover the cost of delivery, and consequently becoming more focused and reliant on income through fundraising activities.

Our operational income for 2024/25 totals £12.8 million compared to £12.1 million in 2023/24, representing a modest increase even in a year where our business model changed. This increase of £0.7 million relates to a £1.5m increase of voluntary income, a £0.5m increase in other income and is reduced by a £1.3m decrease in statutory income. This decrease in statutory income is in line with the refined strategic goals and given the subsidy required to run those contracts, the reduction in this area of income will result in a strengthening of short and long term financial sustainability.

Donations and legacies

In 2024/25, donations and legacies contributed £7.6 million to overall income. This is a £1.5 million increase from £6.0 million in the previous year and reflects the large level of gifts bequeathed to Terrence Higgins Trust from legacies

Charitable activities supported by statutory income from local government and health organisations

Statutory income in 2024/25 is £4.0 million, which is a decrease of £1.3 million against 2023/2024. The decision to reduce our statutory contracts was driven from the fact that a large number of statutory contracts either had no or limited annual cost increases built into the contracts, meaning that it was impossible for Terrence Higgins Trust to cover the true full cost of statutory services, and had to fund shortfalls from other charitable income. In previous years, this resulted in using reserves to subsidise the delivery of these contracts. Therefore, although our statutory income has decreased, as these were contributing to financial loss, it means the requirement for a subsidy from Terrence Higgins Trust reserves or unrestricted income has reduced significantly

Other trading activities

Our trading activities comprise fundraising events, shop sales, rental income, online sales, and sponsorship. Total income for the year is £0.6 million. This is an increase of £0.2 million compared with the previous year, primarily driven by higher rental income. Following a hybrid working policy we found our London premises was surplus to requirements, so took the decision to rent half the space out which brings in an additional £0.2 million per year

Other income

Income in this area, totalling £0.4 million, is from counselling, training and a legacy grant from NAM Publications. While this is traditionally not a major area of income for the charity, there was a significant increase in 2024/25 due to the receipt of the legacy grant. NAM Publications, a separate charity, closed and transferred its assets of £0.3 million to Terrence Higgins Trust. This was to support the maintenance of the aidsmap website in recognition of, and to continue, the legacy of this important work

Total expenditure for 2024/25 was £10.7 million. This is a decrease of £4.1 million (28%) from 2023/24 and £0.8 million less than our forecast, although this was primarily due to £0.4 million of costs being recognised in the prior year after the forecast was approved.

In 2024/25, we spent £8.8 million directly on charitable activities (a decrease of £3.4 million compared to 2023/24), representing 82% (82% in 2023/2024) of our overall expenditure. 

● £3.6 million (£4.7 million in 2023/24) on Ending new cases of HIV by 2030
● £2.7 million (£3.9 million in 2023/24) on Being here until the last person living with HIV 
needs us
● £2.5 million (£3.6 million in 2023/24) on Making sexual reproductive health the national priority 
it deserves to be

The cost of raising funds was £1.9 million, making up 18% (18% 2023/24) of overall expenditure. The organisational restructure, which completed in July 2024, resulted in the Fundraising Department’s staff size halving, which will lower fundraising costs in the future.

Support costs in 2024/25 are £1.4 million (£2.8 million in 2023/2024). This represents 13% of total expenditure, down from 19% in the previous year. We are focused on keeping our support costs in line with the needs of the services and to ensure value for money. As such the restructure also resulted in a reduction of support costs. These costs, which are made up of head office costs, IT, facilities, HR, governance, monitoring and evaluation, Equality Equity Diversity and inclusion, and Finance, and have been allocated across areas on the basis of staff whole-time equivalent.