Accounts

Another good year

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Income for the year

Total income inclusive of financial income (net) in DanChurchAid amounted to DKK 674.9 million in 2018, a declining turnover compared to the record year 2017 of DKK 14.8 million. Compared to 2016 revenue increased by DKK 88.5 million. Income contributed to our work by the Danish people amounted to DKK 166 million while grants from Danida, the EU and other International contributors totalled DKK 502.9 million. Other income (net) amounted DKK 6 million.

Development and Humanitarian aid (81,7%)

Our activities and efforts in 2018, which covered all focus areas, declined by DKK 19.6m to DKK 558m compared to 2017. Compared to 2016 the amount decreased by DKK 26.4m. The declining level of activity was the result of reduced grants from Danida. Development projects dropped by DKK 21.1m to DKK 251.1m, humanitarian emergency aid projects declined by DKK 4.9m to DKK 175.5m and humanitarian mine clearance activities rose by DKK 6.3m to DKK 131.5m. Overall, the primary focus has been priority areas such as humanitarian emergency aid, humanitarian mine clearance, disaster prevention regarding food safety, protection of democratic values as well as various other international activities.

Geographically Africa continues to be the continent in which DanChurchAid has the highest level of activity with expenses totalling DKK 292.2m, equal to 52.4% of our total relief efforts. Our activities centred around the following countries: South Sudan, where a total of DKK 92.1m was spent mainly on disaster relief and humanitarian mine clearance activities; Ethiopia, where DKK 63.2m was spent mainly on disaster prevention as regards food safety and climate change; Zimbabwe, Uganda, Malawi and Kenya, where DKK 36m, DKK 33.5m, DKK 18.3m and DKK 13.5m, respectively, were spent mostly on disaster relief, humanitarian mine clearance activities, disaster prevention as regards food safety and climate change, as well as protection of democratic values.

For the Middle East we recorded the second highest activity totalling DKK 119.5m or 21.4%. Most activities took place in Palestine (DKK 35.5m), where activities were aimed at protecting democratic values; Libya (DKK 29.1m), Lebanon (DKK 25.5m) and Syria (DKK 22.5m), where activities were aimed at providing disaster relief and humanitarian mine clearance.

For Asia, we spent DKK 90m or 16.1%. Our activities were highly concentrated in the following countries: Myanmar, Cambodia, Nepal and Bangladesh, where DKK 29.3m, DKK 18.9m, DKK 15.9m and DKK 14.7m, respectively, were spent, focusing on the protection of democratic values, disaster prevention as regards food safety and climate change, as well as disaster relief and humanitarian mine clearance activities.

Furthermore we spent DKK 55.3m (9.9%) on global activities and DKK 1m (0.2%) on European activities.

Information and fundraising (12,1%)

In 2018, expenses for information and fundraising activities totalled DKK 83.4m, up DKK 21.4m on 2017. The increase in total expenses is the outcome of changed principles for time recording, which means that a larger portion of the labour costs is allocated to the relevant activities. Furthermore, part of the operating costs is allocated to the individual areas of activity.

Expenses of DKK 67.1m was spent on fundraising activities such as the annual Parish Collection campaign, continued focus on new ways of fundraising including the recruitment of donors, the campaigns "Face2Face" and "Give a Goat" (gift catalogue), central logistics operations (stocks) relating to second-hand clothing as well as the operation of charity shops and the Wefood shops - sale of surplus food. DKK 16.3m was spent on information activities such as the publication of the newsletter “Magasinet”, the campaign "Det er dansk at dele" and press work in general. Of the DKK 16.3m, DKK 2.8m was financed externally by, among others, Danida with approx. DKK 2m for project-related information activities and the Timbuktu Foundation with DKK 0.3m.

Secretarial costs (6,2%)

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, in 2018 DKK 43.0 million, which is DKK 2.5 million more than in 2017. The increase in operations can be attributed, among other things, to increased investments in IT in connection with increased self-implementation of projects and GDPR activities, increased payroll costs, and the general price increases.

Administration percentage

The administration rate is 5.6%, which is 0.9% higher than in 2017 (4.7%). The slightly higher administration rate is due to a lower turnover compared to the higher secretariat costs. A new calculation method has been introduced for the administration percentage, and where a larger proportion of the costs for salaries, personnel and operating costs are allocated to the individual activity areas.

Profit for the year

The loss for the year is DKK 14.8m, which is covered by previous years’ profits. A performance poorer than expected mainly stems from the decreased fundraising compared to the budget for which we had high expectations for an increase in 2018 compared to previous
years, although not fulfilled and that it has been necessary to write down a receivable of DKK 5.7m for assisted work in South Sudan.