Annual Accounts

Network Finances in 2018

Overall direct income for Solidaridad increased in 2018 from 39.2 million euros to 56.7 million euros. An increase of 45%. This is one of the results of new sources of funding Solidaridad was able to attract. But we also notice significant regional differences in the ability to diversify our funding base.

Multi-annual figures

The graph above shows the growth of Solidaridad Network from 2011 to 2020. Aggregated income in 2011 was 18.3 million euros which has grown to an aggregate income of 56.7m euros in 2018, a growth of 210% or an average of 30% per year.

This growth rate was realized when regions other than Solidaridad Europe started to contribute to the aggregated income. Between 2007 and 2011 Solidaridad set up entities outside of the Netherlands, but only from 2011 onwards did Solidaridad start to work under one governance system. 

2018 figures for the Solidaridad Network

Solidaridad Network Income Statement 2018
in €1,000

Income 2018 Actual 2018 Budget 2017 Actual 2016 Actual
Solidaridad South America 2,516 3,100 1,596 4,969
Solidaridad Central America 348 0 95 14
Solidaridad West Africa 15,189 4,700 3,432 4,594
Solidaridad Southern Africa 1,035 300 1,569 4,132
Solidaridad East & Central Africa 1,364 1,900 1,286 2,772
Solidaridad Asia 5,539 7,100 8,111 8,016
Solidaridad Europe 30,619 25,669 22,859 18,541
Solidaridad North America 88 0 217 322
Total income 56,698 22,231 39,165 43,360

The table shows actual income in 2018 per region against budget (-13%) and against previous year (+45%). The regional offices only budget income that has already been contracted. In addition, the budget for 2018 included a forecasted income of 22.2m euros which set the total target for the year at 65m euros. The target of 65m euros was deliberately set at this ambitious level. Despite the lower actual income than budgeted, the increase against previous year is significant. 

The growth in income occurred mostly in Solidaridad Europe (+34% against 2017) and in Solidaridad West Africa (+343% against 2017). 

The growth in Solidaridad Europe occurred because insufficient funds were spent in 2017, and thus recognized as income on two large grants from the Dutch government. 2018 saw a catch-up in spending and thus in recognition of income from these grants. Besides, new grants were contracted that were not part of the contracted budget for 2018, but were represented in the budgeted pipeline for 2018. 

The growth in Solidaridad West Africa is largely due to grants from the Dutch Embassy, the Swiss Embassy and the European Union for cocoa and oil palm programs. These grants were not yet contracted at the end of 2017 and therefore they were not represented in Solidaridad West Africa’s 4.7m euros budget, but were in the pipeline.

Working towards consolidation

Because of intercompany balances, it is not yet possible to provide consolidated expenditures for the Network. Solidaridad Network is in the process of working towards the production of consolidated figures. A set of accounting principles has been developed that comply with the Dutch accounting guideline 640 for non-profit organizations and, at the same time, render as much justice to International Financial Reporting Standards (IFRS) as possible. Where relevant, Solidaridad will comply with the stricter set of standards, for example in the area of related parties (IAS 24). For ease, we call this combined set of standards ‘Solidaridad Generally Accepted Accounting Principles’ (Solidaridad GAAP). 

As much as possible, the regional figures below are based on these combined set of standards. This means that they can deviate from the audited financial statements that have been prepared and audited on the basis of local laws and regulations. 

Official Financial Statements

Solidaridad is a true network where each region has its own supervision and financial statements. All financial statements are externally and officially audited. Below you will find the links to the official audited annual accounts. Note that legal entities and regional financial reporting requirements may deviate from the eight regions that we work with in practice. Some regions (e.g. Central America and South America) are integrated in one financial statement, while others (e.g. Southern Africa) report in separate financial statements per country. 

Europe

Central and South America

Africa

Asia