Total expenditure in 2016 was deliberately higher than total income, which resulted in a deficit of €1.0 million for the year. Although the original plan was for a budget deficit of €0.3 million, once the surplus of 2015 of €1.0 million was realised a larger deficit for 2016 was planned in the course of the year to enable a spend of the additional reserves.
War Child aims for reserves at the minimum level needed for the continuity of its organisation, and its policy is to spend any additional reserves on the well-being of children. Expenditures on War Child’s objectives (project activities, communication and awareness raising, preparation and coordination) totalled €25.1 million in 2016, which was €1.9 million above the expenses on our objective in 2015. Costs related to generating funds were €3.0 million, €0.1 million above budget and €0.2 million above the prior year. The investment in fundraising resulted in increased own fundraising income. Expenditure on management and administration during 2016 was €1.5 million - broadly in line with the budget set for the year and with the level of 2015.
War Child strictly applies a low-cost policy and strives for the highest savings in every purchase through price comparison and negotiation. In addition, many corporate entities support War Child by providing their products and services free of charge - such as office supplies and logistical support. This is reflected in our accounts as income from gifts-in-kind, which totalled €0.8 million in 2016.