Financial Report 2021

This page contains the Mondiaal FNV financial report 2021*.

Click here for the summary annual accounts 2021.
 

Financial resources for trade union support

In 2021, Mondiaal FNV supported about 60 projects run by partners, for which the financial resources were provided mostly by the Dutch Ministry of Foreign Affairs (BuZa) within the framework of the Trade Union Co-financing Programme (Vakbondsmedefinancieringsprogramma, in English abbreviated to TUCP) and the Sustainable Textile Initiative: Together for Change (STITCH), a consortium of six international organisations, including Mondiaal FNV. Other sources of financing included the FNV Solidarity Fund, to which 0.7 percent of FNV membership fees is transferred, and the Mondiaal FNV Fund, which combines donations from members and non-members as well as contributions resulting from collective labour agreements. Furthermore, we receive contributions from collaborative ventures with other organisations, such as the WageIndicator Foundation (Stichting Loonwijzer), as well as a contribution from the Dutch General Education Union (Algemene Onderwijsbond, abbreviated to AOb).

In 2021, the new TUCP and STITCH subsidy phases started, the programmes of which had been approved at the end of 2020. Within the context of the TUCP, at the beginning of 2021 we entered into a strategic agreement with BuZa, which will run until 2030 (ten years), and the STITCH programme will run for five years.

In the course of the next few years, the subsidy that Mondiaal FNV receives through the TUCP will decrease, and after five years it will be about 30 percent less annually than the amount received in 2020. Mondiaal FNV will manage this decline by focusing more on obtaining other subsidies, and by increasing revenues from donations as well as from contributions resulting from collective labour agreements. In 2021, an institutional fundraiser was recruited to assist us in obtaining extra subsidies, donations, and funds. 

Project expenditures

Mondiaal FNV uses the subsidies and donations received to support partner projects in Asia, Africa, and Latin America. The TUCP financed 71.07 percent of the project expenditures, STITCH financed 13.14 percent, and other sources accounted for 15.8 percent.

Project and activity payments achieved / minus repayments

Explanation of the financial report

In 2021, Stichting Mondiaal FNV had public funds at its disposal through the Trade Union Co-financing Programme (TUCP), the STITCH programme, smaller subsidies, and its own funds from the FNV, FNV sectors, the AOb, and donors. In addition, income was obtained in cooperation with the FNV through collective bargaining.

On 1 January 2012, Mondiaal FNV was designated the status of a Public Benefit Organisation (Algemeen Nut Beogende Instelling, abbreviated to ANBI). Since 1 January 2017, it has been reporting data on an accrual basis so as to be more in line with subsidy reporting. This means that the effects of transactions (financial facts) are processed in the financial year in which they occur, and not when the associated expenditure takes place or liquid resources are received. As a result, project commitments entered into for the next few years will be included immediately, thereby providing a clearer picture of these commitments as a whole.

In this way, Stichting Mondiaal FNV will render account for its activities in line with generally accepted reporting rules, and, more specifically, the Guideline for annual reporting: C1 for Small not-for-profit organisations (Kleine organisaties zonder winststreven) issued by the Dutch Accounting Standards Board.

In 2021, the FNV provided Mondiaal FNV with a conservation contribution (€ 282,000).

Project funds are transferred to Mondiaal FNV through the directly affiliated sectors and the AOb. Expenditure of these funds takes place under the auspices of Stichting Mondiaal[CF1]  FNV in close consultation with the AOb and the different sectors, as well as with the Cross-sector International Projects Committee (Sector overstijgende Commissie Internationale Projecten, abbreviated to SCIP), a subcommittee of the Committee for International Affairs and Solidarity of the FNV Members’ Parliament. The contributions spent by Mondiaal FNV are allocated to projects that are determined beforehand on the basis of input provided by FNV sectors and the AOb.

Mondiaal FNV’s revenues are reasonably stable. In 2021, two new subsidy programmes were started. We entered into a new, strategic, 10-year partnership with the Sustainable Economic Development Department (Directie Duurzame Economische Ontwikkeling, abbreviated to DDE) of the Dutch Ministry of Foreign Affairs as part of the Trade Union Co-financing Programme. Under the coordination of the Fair Wear Foundation, the Sustainable Textile Initiative: Together for Change (STITCH) was launched as part of the Power of Voices subsidy programme of the Dutch Ministry of Foreign Affairs, in which Mondiaal FNV participates as a subsidy partner. Furthermore, as a project partner and/or a supplier, Mondiaal FNV also cooperates with Stichting Arisa (Advocating Rights In South Asia), the WageIndicator Foundation (Stichting Loonwijzer), and the FNV (within the framework of the IRBC agreements).

With regard to partners implementing projects and assuming new project responsibilities, the COVID-19 pandemic is still affecting their capacity. Nevertheless, they were able to launch many new projects in 2021.

TUCP

The resources managed by Stichting Mondiaal FNV originate mostly from the TUCP. Last year was the first of the 2021-2030 TUCP subsidy period. In 2021, project contributions from the TUCP amounted to a total of 76.29 percent of all project contributions made by Mondiaal FNV.

Furthermore, in 2021 an amount of € 7,125,040 in project funds was committed within the TUCP, and the administrative costs allowance was € 1,112,170, totalling € 8,237,210 or 67 percent of Mondiaal FNV’s net turnover.

The committed sum is many times higher than that in 2020 because it involved the start of a new subsidy period, during which many new commitments were entered into. In 2020, allocations were low precisely because the old subsidy periods were ending. A second advance was provided by the ministry at the end of 2021, as a result of which a prepaid amount of over € 5 million was incorporated into the annual accounts.

STITCH

STITCH is a collaborative venture between the Fair Wear Foundation (FWF), the Dutch CNV Internationaal and Mondiaal FNV trade unions, the British Ethical Trading Initiative (ETI), labour organisation Cividep India, and the Center for Development and Integration (CDI) in Vietnam. The partnership is funded through a five-year subsidy from Dutch Ministry of Foreign Affairs within the framework of their Power of Voices programme. The FWF is the lead coordinator.

In 2021, Mondiaal FNV allocated a sum of € 1,718,988 to projects within STITCH, and the administrative costs allowance amounted to € 364,129.

Administrative costs

Since 2013, administrative costs (organisational costs) have been allocated on the basis of time recording, and a fixed reimbursable percentage is no longer in place. Therefore, the budget and actual results may differ from each other. Although the aim is to budget as realistically as possible, it may happen that more or fewer hours are recorded for a programme in a given year.

FNV’s organisational contribution is different, because this component of its contribution is not meant for specific projects but for financing part of the administrative costs, including fundraising. As a result, this contribution remains unchanged.

Mondiaal FNV’s equity

Mondiaal FNV’s equity is made up of the former reserve administrative costs and the FNV Vakcentrale fund[CF2] , and serves as a buffer to absorb any unanticipated setbacks. Its size has not been capped. Within this equity, an appropriation fund was created that is only to be used to commit more than 100% of the STITCH and TUCP funds, in order to avoid underspending BuZa’s TUCP or STITCH funds, as agreed with the Board of Mondiaal FNV. Mondiaal FNV’s free capital has risen by € 207,601 to € 1,770,843.

Wages and salaries

In 2021, Mondiaal FNV employed 19 people (15.94 FTEs), six of whom were under contract with the FNV until February 2021, and for whom, salary costs were passed on to Mondiaal FNV. In February 2021, these six people entered into an employment contract with Mondiaal FNV. As a result, the annual accounts show a shift from passed-on wages to wages and salaries. Consequently, wages and salaries increase and passed-on costs decline proportionally.

*Relates to pre-audit data because the audit of the annual accounts has been delayed.

Annual Report 2021
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Annual Stories 
Social Report