The annual accounts of Diakonie Katastrophenhilfe are extracted from the audited annual statement of the Protestant Agency for Diakonie and Development (Evangelisches Werk für Diakonie und Entwicklung e.V.) and the Protestant Central Office for Development Assistance (Evangelische Zentralstelle für Entwicklungshilfe e. V.).
Total income in the year 2022 amounted to 134.8 million euros, a significant increase again compared to the previous year (101.7 million euros). This substantial increase of almost 33 million euros is overwhelmingly the result of the huge generosity of donors in response to the start of the war in Ukraine. Funding from the German Foreign Office (Auswärtiges Amt ‒ AA), the German Ministry for Economic Co-operation and Development (Bundesministerium für wirtschaftliche Zusammenarbeit und Entwicklung ‒ BMZ) and the European Union (EU ‒ The European Commission's Civil Protection and Humanitarian Aid Department) amounting to almost 27 million euros is largely unchanged compared to 2021 (26.6 million euros).
The only decline in 2022 was in funding from the EU, primarily due to the fact that funding for a new EU project planned for 2022 in Turkey was already disbursed shortly before the end of 2021. Funds transferred from the AA increased from 8.1 to 12.7 million euros due to the high level of subsidies in 2021, while funding from the BMZ remained largely unchanged at 12.2 million euros (2021: 11.8 million euros), 45.3 per cent of which from its budget for transitional assistance, infrastructure, and crisis management and 54.7 per cent from its budget for church-based and special initiatives. The net financial result fell by 1.6 million euros to 0.3 million euros from the previous year (1.9 million).
The only decline in 2022 was in funding from the EU, primarily due to the fact that funding for a new EU project planned for 2022 in Turkey was already disbursed shortly before the end of 2021. Funds transferred from the AA increased from 8.1 to 12.7 million euros due to the high level of subsidies in 2021, while funding from the BMZ remained largely unchanged at 12.2 million euros (2021: 11.8 million euros), 45.3 per cent of which from its budget for transitional assistance, infrastructure, and crisis management and 54.7 per cent from its budget for church-based and special initiatives. The net financial result fell by 1.6 million euros to 0.3 million euros from the previous year (1.9 million).
In 2022, donations amounting to around 97.4 million euros again increased significantly compared to 2021 (66.6 million euros). Earmarked donations were primarily received in response to the war in Ukraine and its consequences for the civilian population. Total donations for this amounted to almost 69 million euros, 39.9 million euros [siehe S:6] of which came from the Action Alliance for Disaster Aid (Aktionsbündnis Katastrophenhilfe). Non-earmarked donations also increased significantly compared to 2021, to 18.1 million euros (+20.6%).
Further earmarked donations were received for victims of the drought in the Horn of Africa, exacerbated by the lack of grain deliveries from Ukraine and Russia (2.5 million euros), for relief measures in Yemen, Syria and neighbouring countries (1.0 million euros) and for flood disaster relief in Pakistan (1.5 million euros).
Other major project-related donations amounted to 1.7 million euros. Donations were again disappointingly low for forgotten crises and protracted conflicts such as those in the Democratic Republic of Congo, South Sudan, West Africa and Haiti.
To enable Diakonie Katastrophenhilfe to respond immediately to forgotten disasters and initiate reconstruction projects, it receives donations from its sister organisation, Brot für die Welt (Bread for the World) ‒ the same amount as in 2021 (3.0 million euros).
Financial income comes about on the one hand from the fact that donations are allocated in instalments to project partners according to project progress and, on the other hand, from write-ups on securities or capital gains.
Until these funds are disbursed, the approved project related funding is invested in secure investments in compliance with strict internal guidelines. The resulting income from interest and dividends as well as capital gains and income from the write-up of securities is ring-fenced and help cover the cost of project support, advertising and administration. Compared to 2021 (1.9 million euros), the financial result for 2022 amounting to 0.3 million euros was substantially lower. This fall is primarily due to losses on capital assets and higher write-offs on securities resulting from the fall in security prices in the reporting year. Income from interest and dividends as well as capital gains fell by around 0.4 million euros in the reporting year. Public funding and third-party contributions.
In 2022, Diakonie Katastrophenhilfe received subsidies amounting to 10.1 million euros from the German Government and the European Union (EU) ‒ a significant fall of almost 34.1 million euros from the previous year (44.2 million euros).
Funding from the AA also fell significantly by 14.4 million euros to 6.7 million euros (previous year, 21.6 million euros). However, this fall must be seen against the background of very high funding levels in 2021, including the approval of an extensive, long-term food security project in several East African countries with a budget of 13.9 million euros.
BMZ funding amounting to 2.1 million euros was also well below the previous year's level (16.8 million euros). This, too, must be seen against the background of very high levels in 2021. EU funding fell from 5.8 million euros in 2021 to 1.6 million euros (-71.8%) in 2022. This fall was largely due to the advance approval in December 2021 of a project in Turkey amounting to 2.5 million euros.
The main areas of funding from the AA and BMZ for Diakonie Katastrophenhilfe projects in 2022 were as follows:
▪ 1.8 million euros for Ethiopia, South Sudan and Somalia (AA)
▪ 4.4 million euros for Myanmar and Bangladesh (Rohingya refugees) (AA)
▪ 1.15 million euros for Ethiopia and Kenya (BMZ)
▪ 1.0 million euros for the Palestinian Territories (BMZ)
From the EU, we received 1.3 million euros for Colombia and 0.3 million euros for a joint project led by Caritas Austria in Syria (2021: 5.8 million euros). With the help of funding from the German Government and the EU, Diakonie Katastrophenhilfe was able to support important projects in Africa, America and Asia, for which insufficient earmarked or non-ear-marked donations were available.
In 2022, the overall expenditure of Diakonie Katastrophenhilfe amounting to 114 million euros was almost double the amount of 2021 (59.8 million euros). This increase of 54.2 million euros (or +90%) is primarily the result of an increase in project expenditure. This, in turn, was mainly the consequence of relief measures associated with the war in Ukraine and the flood disaster in the German regions of North Rhine-Westphalia and Rhineland-Palatinate in July 2021. Statutory expenditure on humanitarian aid projects, project support and statutory public relations work amounted to around 107.1 million euros in 2022 (2021: 55.5 million euros) and, thus, 93.9 per cent of total expenditure (2021: 92.9%).
The major recipients of project expenditure in 2022 of around 104.2 million euros were Ukraine and its adjoining countries as well as projects in Germany to support Ukrainian refugees (33.0 million euros), South Sudan (7.8 million euros), flood relief Germany (5.9 million euros), Colombia (5.8 million euros), Somalia (5.7 million euros), Kenya (4.7 million euros), Yemen (4.3 million euros), Syria (3.2 million euros), Haiti (3.0 million euros), DR Congo (2.9 million euros), Ethiopia (2.5 million euros). Project expenditure in these countries and regions accounted for 78.9 per cent of overall project expenditure.
Alongside personnel and administrative costs, project support includes ‘upstream’ and ‘downstream’ project activities such as the selection of suitable project partners. It also includes expenditure on controlling and auditing as well as impact monitoring and evaluation. Compared to 2021, expenditure on project support increased by around 294,000 euros or 16.6 per cent. This is primarily a result of increased personnel costs for the additional staff required to oversee the many aid projects related to the Ukraine crisis. There were also additional costs for posts associated with a structural reorganisation. Statutory public relations Expenditure on campaigns, education and awareness-raising activities, which increased slightly to 0.9 million euros (2021: 0.8 million euros), help raise public awareness of humanitarian aid issues. It encompasses public relations, educational work and lobbying. Major areas of expenditure included press and media work, the production of brochures and the curation and maintenance of our photo archive.
Advertising and administration Compared to 2021, expenditure on advertising in 2022, increased significantly by around 2.1 million euros or 86.4 per cent. This increase is particularly related to the two major areas of expenditure: donor mailings (1.9 million euros; 2021: 0.9 million euros) and online/telephone marketing (1.1 million euros; 2021: 0.6 million euros).
The increased expenditure on mailings is balanced by a corresponding increase in donations.
Administrative costs increased from 1.8 million euros in 2021 to 2.4 million euros, a rise of 30.8 per cent. This was primarily the result of the marked increase in bookkeeping and administration costs associated with the high level of donations received. This concerns both personnel and other operating costs.
Personnel costs increased significantly, primarily as a result of the additional posts created to deal with the Ukraine crisis and to cope with donations administration. Further posts were also created within the scope of the structural realignment of the organisation. There was also a slight increase in provisions for overtime and residual leave entitlements.
The substantial increase in other operating costs resulted primarily from higher costs for donor mailings related to the Ukraine crisis, increased bookkeeping costs associated with the highlevel of donations and issuin
Taxes on income and earnings consist of corporation and commercial taxes, related to non-tax-exempt activities (e.g. merchandise sales) and from tax at source and capital gains tax associated with income from securities and investments. The increase in the reporting year is a consequence of slightly higher foreign withholding taxes and a refund of capital gains tax in the previous year.
Interest expenses increased by almost 10,000 euros or 13.9 per cent. Interest is paid, in particular, on the loan to finance our headquarters in Berlin. In 2022, expenditure on advertising and administration as a proportion of total expenditure fell to 6.1 per cent from 7.2 per cent in 2021. This decrease is primarily a consequence of the substantial increase in project expenditure. In absolute terms, these expenses increased from 4.3 million euros in 2021 to 6.9 million euros in 2022. In accordance with the criteria of the German Central Institute for Social Issues (DZI), expenditure on advertising and administration as a proportion of total expenditure is categorised as low.
The auditor’s certificate for the annual financial statements of the legal entities, the EWDE and EZE, and the auditor’s certificate for the annual financial statements will be published.
