USPG's reserves
Over the centuries, USPG has been financed primarily by donations, subscriptions, collections and legacies from individuals and churches across the British Isles. USPG has very substantial reserves, some of which arise directly from the investment of donations and legacies, some from the sale of its own buildings.
The majority of USPG reserves are held in restricted funds reflecting the specific wishes and intentions of its donors. In particular, it holds large endowments for use across the continent of Africa that originate with the Universities Mission to Central Africa which merged with SPG to form USPG in 1965.
As a result, USPG holds a complex mix of unrestricted, designated, and restricted funds held in property and investment assets. As of December 31, 2020 USPG has net assets of £53M. In outline, USPG’s funds fall into the following categories:
Endowment Funds: £43.6m
Predominantly in 16 funds whose purpose is broadly restricted by region or purpose (e. g. education). These funds are a mixture of Permanent (£22.5m) and Expendable Endowment (£21.1m). The expendable endowment includes £4m invested in 5 Trinity Street where USPG has its office, and where part of the building is rented to a tenant. Rental income is restricted to use in Africa.
Restricted Income Funds: £2.6m
These included a diverse range of funds with highly restrictive purposes designated by the original donors.
Designated Funds: £6m
USPG is responsible for two pension schemes and these funds are designated by the trustees to cover the associated pension liabilities. The trustees have a policy to designate funds each year to cover the defined benefit pension scheme. The deficit increased significantly in 2020, necessitating a drawdown form the free reserves.
Free reserves: £0.8m
These are USPG’s general unrestricted reserves.
The bulk of the Restricted Endowment Funds are for expenditure in Africa, especially Central Africa. The overwhelming majority of USPG’s funds have their origins in donations from individuals and churches in Britain and Ireland and generous legacies, often from those who have served with the Society, including former missionaries and mission partners.