Financial Report 2022

Financial resources for trade union support

In 2023, Mondiaal FNV supported about 117 projects run by 56 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, abbreviated to VMP) and the Sustainable Textile Initiative: Together for Change (STITCH), a consortium of six international organisations, including Mondiaal FNV. From 2023 to 2025 an extra VMP subsidy (Combination Track Countries [CTC] and Human Rights Due Diligence [HRDD]) was allocated. 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 Dutch WageIndicator Foundation (Stichting Loonwijzer), Corporate Responsibility Funds (CRFs), as well as a contribution from the Dutch General Education Union (Algemene Onderwijsbond, abbreviated to AOb).

In 2021, the new VMP and STITCH subsidy phases started, the programmes of which had been approved at the end of 2020. Within the context of the VMP, 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 VMP 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 VMP financed 68.55% percent of the project expenditures, STITCH financed 13.82 percent, and other sources accounted for 17.63 percent.

Project and activity payments achieved / minus repayments

Explanation of the financial report

In 2023, Stichting Mondiaal FNV had public funds at its disposal through the Trade Union Co-financing Programme (Vakbondsmedefinancieringsprogramma, abbreviated to VMP), 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, Stichting Mondiaal FNV was designated the status of a Public Benefit Organisation (Algemeen Nut Beogende Instelling, abbreviated to ANBI). In this way, Stichting Mondiaal 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 2023, the FNV provided Mondiaal FNV with a conservation contribution (instandhoudingsbijdrage) of € 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 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, and 2023 was the third year of two of our subsidy programmes. In 2021, 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 (BuZa) 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 in 2021, 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).

VMP

The resources managed by Stichting Mondiaal originate mostly from the VMP. The year under review was the third of the 2021-2030 VMP subsidy period. For 2023 to 2025 an extra VMP subsidy (CTC and HRDD) was allocated. In 2023, project commitments from the VMP amounted to a total of 74% of all project commitments made by Mondiaal FNV.

 Furthermore, in 2023 an amount of € 9,309,721 in revenues was realised within the VMP, which included an administrative costs allowance of € 1,770,779, totalling 72.8% of Mondiaal FNV’s revenues.

 The amount committed in 2023 is many times higher than in the previous financial year because the long-term projects were running in 2022 and less money needed to be committed. New multi-annual projects were issued in 2023. A third advance was provided by the Ministry at the end of 2023, which came just short of covering expenditures, leaving a receivable from the subsidy provider.

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 the Dutch Ministry of Foreign Affairs (BuZa) within the framework of their Power of Voices programme. The FWF is the lead coordinator. In 2023, Mondiaal FNV allocated a sum of € 1,390,921 to projects within STITCH, and the administrative costs allowance amounted to € 390,657.

Administrative costs

Administrative costs (organisational costs) are allocated on the basis of time recording. 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 capital

Mondiaal FNV’s capital serves as a buffer to absorb any unanticipated setbacks. Its size has not been capped. Within this capital, an appropriation fund was created that is only to be used to commit more than 100% of the STITCH and VMP funds, in order to avoid underspending BuZa’s VMP or STITCH funds, as agreed with the Board of Mondiaal FNV. Mondiaal FNV’s free capital has risen by € 351,368 to € 2,109,459.

Wages and salaries

In 2023, Mondiaal FNV employed 20 people (18.20 FTEs).