Sponsors abandon White Ribbon, sending it into the red

Anti-domestic violence agency White Ribbon Australia is in a “parlous’’ financial state.

Former White Ribbon chief executive Tracy McLeod Howe.

Anti-domestic violence agency White Ribbon Australia is in a “parlous” financial state with its annual report due next month set to show the group is in the red.

It is understood at least three sponsors have indicated the end of their support for the organisation, which relies on corporate partnerships for about 18 per cent of its annual income.

Sources familiar with the situation told The Australian last night that White Ribbon’s 2017-18 annual report due next month was “showing losses”.

This came a day after former White Ribbon chief executive Tracy McLeod Howe told The Australian that the organisation, which last financial year received 7 per cent of its funding from state and federal governments, was in some financial strife.

Ms McLeod Howe said she was forced out of the top job after just three months by a board that did not back her vision for change.

Acting White Ribbon chair Ian Carter has announced the organisation’s community and programs director Delia Donovan as acting chief executive.

“The organisation is certainly facing some financial challenges,” Ms McLeod Howe said.

“I had many proposals and plans and, absolutely, capacity to address this. Regardless, due to the poor cultural fit, my capacity was never able to be tested due to my early departure.

“But there was never any indication at board level that I wasn’t up to the job regarding the financial situation either.”

Ms McLeod Howe declined to comment further on the financial problems facing the organisation as she did not want to be “inflammatory” ahead of White Ribbon Day, the agency’s flagship fundraising event, on November 23.

Sources said White Ribbon had already brought in specialists to “sort it (finances) out”.

“Financially they are in a very parlous situation,” one insider said yesterday. “There is a policy that they won’t take any more than 10 per cent of government funding.”

The organisation’s income is derived from several sources, including a fee-for-service workplace accreditation program; commonwealth and state government grants; corporate partnerships; philanthropic trusts; and merchandise, donations and community fundraising. Last year it had 33 committees across the country that co-ordinated more than 1210 fundraising events.

Sources close to Ms McLeod Howe said the 51-year-old former Domestic Violence NSW chief came to White Ribbon Australia with a vision to set up a fund that would invest in communities rather than in administration.

“People on the ground who are giving them (White Ribbon) their dollars, well, we need to spend their dollars wisely,” one insider said. “That was the direction that Tracy wanted to take White Ribbon, as opposed to raising funds for head office. They need to get their house in order.”

A spokeswoman for White Ribbon Australia did not answer specific questions from The Australian but in a statement said: “White Ribbon’s finances are recorded annually in the annual report.” She said White Ribbon had 45 employees, including part-timers.

The 2016-17 annual report showed the organisation had revenue of $5.6 million last year and, after expenses, a surplus of just $298,481.

Employee expenses accounted for more than $2.8m and travel and accommodation was more than $240,000. Expenses listed as “other” but not detailed were more than $1m.

The report showed that last year the organisation received more than $300,000 in grants, almost $1.3m in donations and close to $628,000 from fundraising.

Payments to suppliers and employees totalled more than $4.9m.

Less than half of White Ribbon’s spend was on community programs, with the bulk of this expenditure stream allocated to ambassadors; advocates; and diversity, schools and youth programs.