Financial Review

Income Statutory Contracts Fundraising Expenditure Future plans

At Jigsaw, it’s vitally important to us to be open and honest about how we are funded and how we use those funds to support young people with their mental health.

If you want to learn more about our finances, you can access our full independently audited financial statements for 2018 here...

Income

Total income in 2018

€11,679,210

Total income in 2018 was €11,679,210, which represents an increase on 2017 income (2017: €9,252,403) of 26%. This relates mainly to increased resources under the HSE service level agreement for local Jigsaw services, and growth in fundraising income, both from individuals and from corporate supporters.

How we raise our money:

Donations and legacies – 19%
Charitable activities – 81%
(Including funding from the HSE and others)

How we spend our money:

Raising funds – 3%
Charitable activities – 97%
(i.e. Jigsaw services and supports)

Statutory contracts

In 2018 Jigsaw received €8,307,172 from the HSE Mental Health Directorate under a service level agreement. This was to support the delivery of Jigsaw services through a growing network of 13 local services. This represents an increase on 2017 funding (2017: €6,628,875) of 25% related to the increased costs from the increased services provided by Jigsaw.

In addition to this national service level agreement, the local HSE in Galway and Donegal provide additional resourcing to delivering Jigsaw in these communities. This involved a transfer of staffing to Jigsaw under a TUPE agreement and a service level agreement between the HSE in Galway and Jigsaw. Under this service level agreement, the HSE in Galway paid Jigsaw €852,540 to contribute to Jigsaw Galway costs for 2018.

The HSE in Donegal contributes resources to Jigsaw Donegal through a local fiscal agent, the North West Alcohol Forum. The local contributions in Donegal are valued at €248,231.

The value of local contributions in Donegal are reflected in the statement of financial activity as both income and expenditure.

Jigsaw was included in the Programme for Partnership Government published in May 2016:

‘Accessible and informal mental health services can play a vital role in connecting with young people. We will extend these services, such as Jigsaw, which is free to access and does not require GP referral, which are more informal and attractive to young people.’

The HSE service plan for 2018 also refers to Jigsaw:

‘Corporate Plan Goal 2: Provide fair, equitable and timely access to quality, safe health services that people need.

Deliver timely, clinically effective and standardised safe mental health services in adherence to statutory requirements: Enhance Jigsaw and other early intervention services specific to those aged 18 to 25 years identified as requiring particular community-based responses.’

This significant support and endorsement of Jigsaw, as an accessible early intervention and prevention youth mental health service, in the Programme for Partnership Government and HSE service plan and through funding from HSE Mental Health, and Primary Care at local and national levels, is highly valued and appreciated by Jigsaw. We continue to work with the HSE to secure sufficient finance to meet the costs to deliver the network of local services. Jigsaw is heavily dependent on the service level agreement with the HSE for the continued delivery of its youth mental health services.

General fundraising

Fundraising income is increasing, in line with a new fundraising strategy and related investment in fundraising resources. This has been a priority for Jigsaw, to grow fundraising to replace income that previously came from philanthropy and funding from reserves to cover the day to day operations of activities related to implementing the full 2018-2020 strategy. In 2018 fundraising income amounted to €1,376,106 which is an increase of some 92% (2017: €716,145).

The 2018 return on investment in fundraising is 4:1 (excluding pro-bono income) and 6:1 (including pro-bono income).

€1,376,106

In 2018 fundraising income amounted to €1,376,106 which is an increase of some 92% (2017: €716,145).

€895,161

In 2018 pro-bono support amounted to €895,161 (an increase on 2017: €765,902).

6:1 Return on Investment

The 2018 return on investment in fundraising is 4:1 (excluding pro-bono income) and 6:1 (including pro-bono income).

Jigsaw is committed to continuing to develop our work in influencing change, strengthening communities and service delivery. Ongoing and sustained growth in fundraising income is necessary to fund these elements of Jigsaw’s work.

Jigsaw - Annual Report 2018

Expenditure

€11,059,813

Overall expenditure in 2018 was €11,059,813 which represents an increase on 2017 expenditure (2017: €9,428,598) of 17%.

In line with the new strategic pillars we have grouped comparative figures from previous years. Work previously classified as research and engagement now comes under the influencing change pillar. Strengthening communities is a new category and includes our education and training work with partners in areas outside of our service areas, and also includes One Good School.

This increase relates mainly to increased costs for the delivery of services.

How we spend our money - 2018

Jigsaw service delivery - €10,255,142, (93%)
Strengthening communities - €124,809, (1%)
Influencing change - €320,944, (3%)
Raising funds - €358,918, (3%)
Total - €11,059,813, (100%)

How we spend our money - 2017

Jigsaw service delivery - €7,958,953, (88%)
Influencing change - €806,279, (9%)
Raising funds - €243,885, (3%)
Total - €9,009,117, (100%)

How we spend our money - 2016

Jigsaw service delivery - €7,296,375, (94%)
Influencing change - €296,437, (4%)
Raising funds - €185,690, (2%)
Total - €7,778,502, (100%)

Jigsaw services delivery continues to be the main focus of Jigsaw’s work and related costs and represents 93% of the total costs in 2018. This is borne out by the increase in the number of staff employed for Jigsaw services with 119 staff employed at the end of 2018 (2017: 108).

There is a decrease on the expenditure for influencing change in 2018 of €485,335 compared to 2017 €806,279. This is due to a one off national advertising campaign that was free of charge in 2017 and to increased expenditure in 2018 on the My World Survey research of €156,218 (increased from some €83,157 in 2017).

Expenditure on fundraising has increased from 2017 levels and relates to our increased investment in fundraising to enable Jigsaw to increase fundraising income. As reviewed above, return on investment in fundraising is a key measure of fundraising success.

In our work at Jigsaw it’s imperative that we ensure we’re doing the right things, and then doing those things right...

Dr Joseph Duffy, Chief Operating Officer.

Unrestricted funds expenditure
The total expenditure from unrestricted funds for all activities including influencing change, strengthening communities, delivering services and cost of generating funds was €724,434 (2017: €754,758) which is less than the level of unrestricted income received in 2018 by €383,279. This is in contrast to 2017 where expenditure exceeded income by €235,183 and reflects the growth in fundraising income.

The company does not operate a defined benefit pension scheme. The company operates a defined contribution pension scheme for qualifying staff. The contributions payable are charged to the income and expenditure account in the year they fall due and there are no future pension liabilities arising for the scheme.

Investments, investment policy and governance The company does not hold any financial investments. Any funding surplus to current requirements is held in Irish bank accounts and is readily accessible. Funds may be held in Irish deposit accounts and in current accounts in line with the board approved treasury policy. The board reviewed the treasury policy in 2018. Investing surplus funds in deposit accounts is considered a low risk investment for Jigsaw. It is not proposed at this time that Jigsaw consider other investment options, given the increased level of risk with speculative investments.

Outline summary of fund movements
The net movement in fund for 2018 was a surplus of €619,396 (2017: deficit of €176,195), which is analysed by restricted/unrestricted in Note 21 in the accounts. The total service delivery expenditure related to the service level agreement with the HSE Mental Health Directorate was €8,274,703 and this was met by HSE Mental Health Directorate income.

Unrestricted funding
There was a surplus in the year of €383,279 (2017: deficit of €235,183) related to activities funded through unrestricted funding, and this is due to unrestricted fundraising income that was higher than the expenditure coming into the company.

I felt as if I wasn’t being judged, that I could talk about what was concerning me without the fear that I would be ignored or have my trust broken.

A quote from a young person who attended Jigsaw
for support with their mental health

Reserves
In accordance with recommended best practice, each charity should have a reserve policy and Jigsaw has developed and adopted a reserves policy.

The board of directors has examined the charity’s requirements for reserves in light of the main risks to the organisation. It has established a policy whereby the working capital requirements are considered for both the HSE funded and non-HSE funded work of the company. The unrestricted funds not committed or invested in tangible fixed assets held by the charity should be maintained at a level of 13 weeks of the non-HSE related projected expenditure to meet the working capital requirements of the charity.

The local Jigsaw service delivery is resourced through an annual service level agreement with the HSE. Continued resourcing is required from the state in order to continue to deliver these services. The directors have agreed to consider the total costs of Jigsaw (including the HSE resourcing of Jigsaw services) in their review of maintaining a prudent reserve. This is in order to provide for working capital requirements should there be a need for an orderly wind down of Jigsaw’s service delivery.

Total reserves at the end of 2018 are €3,166,782.

Restricted reserves at the year-end amount to €448,721.

At the end of 2018 Jigsaw had designated reserves of €1,004,000. The board agreed to designate a reserve from the general reserve to invest in the strengthening communities and influencing change pillars beyond what projected income from fundraising will cover for 2019. In addition, the board has agreed to maintain a reserve for the statutory redundancy costs of staff in place at the end of the financial year.

The directors consider that the level of unrestricted reserves of €1,746,530 is sufficient to meet the working capital requirements non-HSE related projected expenditure, estimated at €365,600. The amount held is €1,380,930 about the minimum reserve required for 13 week working capital for non-HSE related projected expenditure. It is considered that this is sufficient to cover an orderly wind down of Jigsaw services should the HSE service level agreement contract not be renewed. This is in line with Jigsaw’s policy. If the reserves fall below the level required by the policy, the directors will consider what actions need to be taken.

Future plans

Jigsaw’s reserves have been built up over time from philanthropic funding. This funding was provided to support Jigsaw to develop and demonstrate Jigsaw’s service model as an innovative approach to meeting the mental health needs of young people. The availability of funding to develop new innovations in response to deep rooted issued has always been welcomed and appreciated by Jigsaw.

In determining the allocation of reserves for future plans, the board of Jigsaw maintain a focus on innovations and acknowledge that there is a lead time to develop and prove new innovations that may require the allocation of significant funding from reserves.

In line with the current strategic plan, the board accept that Jigsaw may need to invest from unrestricted reserves significant levels of funding to develop new areas of work, such as the One Good School project and jigsawonline.ie

The maintenance of an unrestricted reserve is viewed as key to advancing new innovations in mental health and allowing the board to make decision about the future plans of the organisation.

Funding from the HSE is committed on an annual basis and there is an inherent challenge for long term future planning related to an annual commitment of funding. To mitigate this risk, we work closely with the HSE Mental Health Directorate to agree Jigsaw service development plans through a partnership approach.

While our income from fundraising has grown and we have a number of multi-annual agreements with corporate sponsors, other areas of fundraising can increase and decrease based on public sentiment and competition from other charities. The fundraising team looks to build diverse and sustainable income streams to minimize this risk.

While some of the large scale philanthropic funds have closed in Ireland in recent years, there are a number of trusts and foundations who remain an important funding support to the charity sector and Jigsaw works hard to identify potential grants and funds that are aligned to our mission and enable us to advance our work.

An annual fundraising plan is developed and approved as part of the next year’s budgeting process. This fundraising plan aims to address the risks, challenges and opportunities across the range of fundraising income streams.

Post balance sheet events
The HSE National Mental Health Directorate have confirmed a service level agreement for 2019 of €10.35m. This relates to the costs of delivering increased services across the network of 13 locations, which includes deferred income at the end of 2018 of €1,066,618.

This includes funding to develop additional service locations by expanding the service in Offaly to cover Laois, and by commencing the development of two new services in Wicklow and Tipperary in 2019.

In addition, the HSE CHO Area 2 contribution for Jigsaw Galway will be €854,630 and the HSE CHO Area 1 funding for Jigsaw Donegal of €289,000 has been agreed. This level of funding is considered sufficient for the delivery of Jigsaw services in the 13 locations in 2018 and to develop the new agreed service locations. In February 2019, it was agreed that the operation of the local Jigsaw service in Donegal would transfer from the local Fiscal Agent, the North West Alcohol Forum Ltd to Jigsaw. This involved a TUPE process for the existing staff and the transfer of operational and clinical governance to Jigsaw which took place in May 2019. The North West Alcohol Forum has been a key local partner to Jigsaw since opening Jigsaw Donegal in 2012 and their support is appreciated by Jigsaw.

There are no other post balance sheet events affecting the company.