Accounts

A record-breaking year

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At DanChurchAid, we help people in extreme distress. We have done so for almost 100 years.

We help people whose situation is the most difficult of all in the world. The starving and vulnerable. The displaced and persecuted. The oppressed and discriminated. The world’s poorest people who do not have a voice that is heard due to war and catastrophes or other structural inequalities.

2019 offered many vital tasks to DanChurchAid, requiring the wide span of our relief work in the fight for the world’s poorest. Here, a short summary of our 2019 activities will follow:

Income for the year (785.5m)

Total income, including the net financial income of DanChurchAid, reached DKK 785.5m in 2019, the highest revenue to date. Compared to 2018, the revenue increased by DKK 110.6m, and compared to the previous record-setting year 2017, revenue increased by DKK 93.9m. Income contributed to our work by the Danish people amounted to DKK 157.3 million while grants from Danida, the EU and other International contributors totalled DKK 615.5 million. Other income (net) amounted DKK 7.2 million.

Development and Humanitarian aid (82.6 %)

Our activities abroad in 2019, both the development activities and the humanitarian emergency aid activities, covered all focus areas of DanChurchAid, which are to save lives, build healthy communities, fight extreme inequality among other international relief work. The relief work totalled DKK 648.6m, which is a considerable increase of DKK 90.5m compared to 2018, and an increase of DKK 70.9m compared to 2017. The growing level of activity is caused by increased grants from external donors, mainly for the humanitarian emergency aid projects, which have risen by DKK 97.9m to a total of DKK 404.8m. Moreover, DKK 243.8m has been spent on development activities, down DKK 7.3m on 2018. Our principal focus has been on the activities of “saving lives” and “building resilient communities”.

Information and fundraising (9.0 %)

In 2019, expenses for information and fundraising activities totalled DKK 70.7m, down DKK 12.7m on 2018. The considerable drop in the total expenses is a result of the fundraising activity “Face2Face” closing, among other things.

Expenses of DKK 55.4m were paid in connection with fundraising activities such as the annual Parish Collection campaign, continued focus on new ways of fundraising including the recruitment of donors, the campaign “Give a Goat” (gift catalogue), central logistics operations relating to second-hand clothing as well as the operation of charity shops and the Wefood stores - sale of surplus food. DKK 15.3m was spent on information activities such as the publication of the newsletter “Magasinet”, educational travel of volunteers, travel of reporters, partnership activities, the award of the Timbuktu Prize, and presswork in general in which our correspondent in Africa has contributed video footage and other information.

Of the DKK 15.3m, DKK 2.6m was financed externally by, among others, Danida with approx. DKK 2m for project-related information activities, the Timbuktu Foundation with DKK 0.3m, and Go Global with DKK 0.3m.

Secretarial costs (6.6 %)

Total expenses for secretarial operations, incl. operation of country offices, after the part relating to program and project-related expenses via time registration and cost allocation has been moved to the relevant activities. After the allocation of these expenses, secretarial expenses amounted to DKK 51.7m in 2019, up DKK 8.6m on 2018. DanChurchAid received total administrative contributions of DKK 37.3m (an average rate of 5.9%) from donors to manage the grants received, which is DKK 4.7m more than in 2018 when DKK 32.6m (an average rate of 6.0%) was received.

The increased operating costs of the regional offices are the outcome of the opening of more regional offices in Africa and the Middle East, meaning that DanChurchAid is now represented in 19 countries with as an increased number of employees handling the growing relief work. The rise in operating costs of the Copenhagen secretariat in Mehldalsgade is attributable to a change in the calculation method of the provision for holiday pay obligations, which has increased by DKK 5m.

Administration percentage (5.3 %)

The administration rate was 5.3%, which is 0.3% less than in 2018 (5.6%). The slightly lower administration rate mainly results from the somewhat higher revenue in 2019 compared to 2018, and because the secretarial expenses have not increased proportionally.

The administration rate is calculated as total payroll, staff and operating costs relating to the activities in the International as well as the Engagement department expressed as a percentage of total revenue.

Profit for the year (8.7m)

The profit for the year amounts to DKK 8.7m and is transferred to equity, thus increasing the financial resilience of DanChurchAid as an organisation and business partner. The positive performance is rooted in fewer expenses spent on fundraising activities in Denmark. In addition, a good deal of the operating costs has been financed through external donations.

Equity amounts to DKK 111.5m on 31 December 2019.