The open day in aid of Ropley was an excellent well managed event, and showed just how generous the ringing community can be, not just financially but also in terms of their time and energy taken to organise it. However, it was in aid of a specific project.
Much has changed over the last 50 years since many of our Society BRF’s were established. Thanks to many decades of fundraising and much volunteer labour, there are now far fewer unringable towers, and many rings now hang in modern frames, with modern fittings, which are far less expensive to maintain.
We often hear calls to raise more money for Society BRF’s, but in recent decades money has generally been coming in faster than it is spent. The surplus is often invested short term deposit accounts such as the CofE CBF Deposit Fund. In 1995-7 a CCCBR survey showed that there were about 5.3 years’ worth of reserves held in Society BRF’s. Nowadays this has doubled to about 10.6 years’ worth of reserves.
Taking figures from CBF’s factsheet, If a BRF constantly had £50k invested in that fund over the last ten years it would have grown to £54,160. However, to match the CPI measure of inflation over the same period, it would need to grow to £66,600, so there would have been a loss of £12,440 in purchasing power.
I know that some will argue about which is the most relevant measure of inflation, and investment in short term deposit accounts may have been appropriate when there was a faster turnaround. However, the point is that when members see their money held in the BRF for a long period of time before is spent, and it depreciates as it is held in short term deposit accounts, will they contribute more? In real terms, members are donating less than they did a few decades ago. Martin Lewis would not be impressed!
CCLA, which manages the CBF Deposit Fund on behalf of the CofE, offers actively managed longer term investment funds for the CofE and other charities. It is recommended that these are held for a minimum term of five years, and they have a target of beating CPI inflation. The COIF Charities Investment Fund has reported an annualised return (increased on average each year) of 9.44% over the last ten years. Over this period, it has beaten its target of matching CPI + 4% to produce an annualised return of CPI + 6.68%, significantly enhancing the purchasing power of the money invested.
The Oxford Diocesan Guild Bell Fund has been investing money not needed for the next three years in a basket of longer-term investments, based on advice from their Diocesan financial adviser, for many years. Consequently, it has accumulated a large investment fund, the income from which now helps the fund to offer grants of 20% of the cost of eligible works. If only more societies did the same, they could generate far more money to spend on their bell restoration projects. Alternatively, they could invest more money on more welcoming ringing environments and towers where ringing can thrive, as Robin Shipp and Simon Linford argue in the Ringing 2030 thread. Or they could do a mix of both.
https://www.ccla.co.uk/investments/investor/charities-and-churches