Even though things did look good for a year or two, funds are becoming increasingly scarce for non-profit organisations. For this reason, NAK-karitativ favours a specific type of donation.
NAK-karitativ was recently able to set aside 2.75 million euros for a rainy day. And such times are looming on the horizon. This is what the recently published Annual Report 2023 says.
A good ninety per cent for projects
The German non-profit organisation spent more than 3.1 million euros on 45 projects in 16 countries in 2023, cooperating with 13 partner organisations. Around 65 per cent of this was allotted to projects in Africa with a focus on Kenya, Malawi, Zambia, and South Sudan; just under 14 per cent to Europe with Ukraine and Germany; and around 21 per cent to Asia, primarily Armenia, Turkey, and Israel.
The organisation envisions a world in which all people can live free from hunger, receive adequate healthcare, and have a wide range of educational opportunities. The funds are divided between the bread sector with more than 960,000 euros, health with a good 570,000 euros, and education with 870,000 euros. Added to this is disaster relief totalling almost 720,000 euros.
In addition to the project costs, public relations and administrative expenses also have an impact on expenditures. Together, both account for around 9 per cent of total expenditure, which amounts to 3.43 million euros.
Extra revenue in flux
On the revenue side, things look extremely good at first glance. At almost 6.2 million euros, this represents an increase of a whopping 1.4 million euros. However, this was due to a one-off event: an extraordinary bequest of almost 2 million euros. Thanks to this bequest, NAK-karitativ was able to set aside funds for the future.
However, the largest item on the income side is declining. At 2.9 million euros, individual donations were around half a million euros lower than in the previous year. Basically, this is a return to normal levels. In 2021, individual donations increased significantly due to the war in Ukraine and the floods in the Ahr Valley in Germany.
Government subsidies have plummeted from 240,000 to 20,000 euros. This is due to changes in government policies and cuts in public budgets. Support for long-term campaigns fell by around 10 per cent (194,000 euros) and income from fundraising campaigns in congregations fell by 25 per cent. The income of 42,000 euros nevertheless reflects “a huge commitment on the part of the congregations of the New Apostolic Church,” NAK-karitativ says.
Key challenges
“There is still a strong dependence on donor-designated funds for crises and disasters that have a high media profile,” the 2023 Annual Report summarises. In other words, people prefer to donate to emergencies and disasters that they are familiar with from the media.
This causes two problems. The charity says that in addition to the financial costs, the amount of work involved in coordinating the projects has increased. And: “The use of restricted funds poses challenges for the organisation, whether due to government regulations or security risks for employees.”
NAK-karitativ points out that its strength lies in sustainable development cooperation, sustainable food security, and the promotion of health and education. “The most effective donation remains unrestricted giving, which enables flexible use there where aid is most urgently needed.”