Expenses and administrative costs

Costs & expenditure

Costs

Professional development cooperation requires good organization.

Professional development cooperation requires good organization. But this is not possible without a minimum of administration effort.
Project work
Educational activities
Publicity work
Administration
Donor liaison
Annual surplus

Application of Funds – a Breakdown of our Expenditures

The donations entrusted to us are used for the following:

  • Our project work in Ethiopia
  • Educational activities to fulfil the purpose of our association
  • Publicity work, fundraising and donor information
  • Administration and donor liaison

2020: How the funds were used

In 2020, € 4,052,346 in funds were available to be used in the following areas:

  • Our project work in Ethiopia (75.82 %)
  • Educational activities to fulfil the purpose of our association (2.93 %)
  • Publicity work, fundraising and donor information (13.26 %)
  • Administration (3.66 %)
  • Donor liaison (4.33 %)
  • Annual surplus (0 %)

You can read in detail about the amount of funds used each year in the different areas in our annual reports.

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Project work

We disclose the use of the funds entrusted to us for the ongoing project work and the financial requirements for the coming years, i.e. our planned project work in Ethiopia, in our annual financial statement. This can be inspected online or in our annual reports.

As we develop whole regions with our project work over several years, we always prepare 3 to 5-year plans which precisely stipulate the planned measures that we undertake to implement under contract. It would be irresponsible to start working in a new project area without at least having covered the financing to a certain extent. Both the Austrian association and the German foundation, which perform the work on the ground on our behalf, therefore create reserves as the necessary security to continue with development projects that have already been specified. In this way, we can also meet our responsibilities toward the people in our project areas when donations decrease for a while, or we incur unusual levels of expenditure due to disasters. However, as these reserves would in no way cover the financial requirement for the entire term of a project area, we are naturally reliant on the regular support of our donors.

Expenditure

Educational work in accordance with our association’s purpose

Creating an awareness among the general public of the challenges of a country like Ethiopia and the emergency situation of the people who live there is stipulated in our statutes. It is therefore necessary to prepare information appropriately, to make informational material available, and to actively approach multiplicators, opinion-formers, media and politicians, as well as the general public.

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Public relations, fund raising and informing donors

As Menschen für Menschen finances itself almost entirely through donations and receives very little from the public purse, it is necessary to pursue appropriate fund raising and public relations. Our donors and potential donors need to be informed about the situation in Ethiopia, our work and its effectiveness. Our public relations is mostly developed and implemented by our team in the Vienna office. Wherever possible, we pay attention to finding collaboration partners who can help keep costs low.

Making direct contact with our supporters is part of our communications work. For this, we use various media that differ by target group. From the electronic newsletter to the classic letter We also always ensure that each euro spent generates many times more in donations. Without this deployment of funds in the area of public relations, we could not secure the appropriate donations or finance our project work.

What is important to us in public relations.

In principle, Menschen für Menschen does not pay for newspaper advertisements or for TV, radio or poster advertising. We guarantee that donor acquisition is carried out truthfully and professionally, and that people’s dignity is preserved. Our employees do their own research in the field. We comply with the provisions of the Data Protection Act and guarantee that the donations are used in accordance with the declared purpose.

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Administration and donor management

Twelve employees work at the office in Vienna. In addition to the highly responsible task of administering donations, they plan and coordinate the dissemination of information and public relations. They are in regular contact with the team in Ethiopia, which is responsible for implementing the project work, as well as with our sister organization of the German foundation, and check expenditure in the area of the project work and its utilization. Voluntary employees also support the activities of Menschen für Menschen.

Control is important to us.

Menschen für Menschen carries out all projects with its own employees. This enables detailed and effective control. All expenditure is checked and approved by several bodies before it is utilized. Apart from the project leaders, the project coordinators and country representative are always out and about in the Ethiopian project areas to check how the funds are being used. Employees from Controlling also visit project areas regularly. They mainly check the cash situation, stock levels, and fuel consumption. They also appraise progress on the construction sites. The departmental heads in the project areas report to the project leaders. The project leaders account in quarterly reports to the country representative and the Ethiopian authorities. The latter regularly check the information in the reports in the project areas for concordance with the work done.

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Keeping costs low – partners who help

Menschen für Menschen is in many respects reliant on the help and support of companies, in order to be able to handle donations in the most efficient and thrifty way possible. We are very grateful that our partners have the time, products and financial resources to support us with this. This concerns different areas of the organization.