How we cover our costs
When we launch an appeal following a disaster in any place of the world, we often raise dozens of millions of francs. Find out more on why and how we invest the money and how we cover our running costs.
A large proportion of the money we raise goes to long-term reconstruction projects, so we pay out aid money to our partner organizations in small instalments. We have a careful monitoring system to ensure it is spent wisely.
For each project we agree to fund, we pay part of the costs at the beginning, a part once the project has been shown to be running well, and the rest once it has been concluded and we have received the final report.
For example, reconstruction work following an earthquake takes a long time, so the money you donate is paid out in instalments over several years.
For example, the CHF 66 million we raised for the victims of the Haiti earthquake is being spent over several years, so it makes sense to make the money not yet spent work for us in the meantime. That is why we invest it carefully.
Prudence, diversification and capital maintenance are the key values in our investment strategy. Our Finance and Investment Committee ensures that the strategy is properly applied, and regularly monitors the results.
Since we became a foundation in 1983, most years we have been able to cover our operating costs with the interest earned.
The financial climate has become much more uncertain in recent years. We can no longer assume that we will earn enough interest to cover our operating costs.
If at some time we are unable to do so, we still have reserves to fall back on, or we can write off up to 5% of the funds raised in our largest appeals.
The reserve funds are formed from profit surpluses and unspent donations.