Act against Aids

Annual Report: Thanks to prudence and flexibility also successful during the Covid-19 crisis

Thanks to the support of our loyal donors and prudent planning, we closed the 2020 financial year with a profit of CHF 0.9 million. Around 90 per cent of total expenses flowed directly into aid projects, reflecting even more efficient use of resources than in 2019.

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After an extraordinary 2019 with a high level of income from legacies (total income CHF 21 million), 2020 also saw gratifying income of CHF 7.1 million despite the Covid-19 pandemic. CHF 2.3 million of this stemmed from ordinary donations (versus CHF 2.4 million in 2019). This good result was only possible thanks to the great loyalty of our donors, on whom we were again able to count during this difficult year. At around CHF 840,000, earmarked donations saw a year-on-year increase of 16 %, while donations in kind declined 17 % to around
CHF 1.6 million.
The Swiss Agency for Cooperation and Development (SDC) provided Newlands Clinic with CHF 2.1 million in funding — CHF 1.8 million from the funding agreement, CHF 72,000 for the additional food aid project, and a final payment of CHF 240,000 for the period from 2016 to 2019. The SDC will be providing the foundation with funding of CHF 6.98 million for the period from 2020 to 2023. Food aid funding (2018 – 21) comes to CHF 240,000.

More efficient use of resources
At CHF 6.5 million, total expenses were 8 % lower than the prior year. CHF 5.8 million or 90 % flowed directly into projects (compared with 88 % in 2019). Newlands Clinic accounted for CHF 5 million (–6 %), the Training Centre CHF 522,000 (–8 %) and the Women’s Health Centre CHF 326,000 (–6 %). The main reason for the decline in project expenses was the Covid-19 pandemic, which resulted among other things in fewer courses and volatile procurement prices with the dollar exchange rate developing favourably.

Slight decline in general expenses
Administration, fundraising and communications expenses could be reduced 22 % to CHF 674,000, which is 10 % of total expenses (versus 12 % in 2019). Administration expenses amounted to around CHF 455,000 (down 10 %), with fundraising and communications expenses declining to around CHF 219,000 (down 39 %).

Balance sheet and annual profit
The income surplus increased current assets to CHF 24.6 million (+1 %), CHF 15.2 million of which came from securities. Organisational capital totals CHF 24.3 million and designated capital CHF 18 million. The HIV treatment which patients need their whole life long can thus be assured over the longer term. Inventories of drugs remained stable. The profit and loss statement closed with an income surplus of around CHF 650,000. A positive development in financial earnings resulted in a profit before capital allocation of around CHF 1.1 million. Annual profit after capital allocation to increase fluctuation reserves came to CHF 871,000.

Financial statements for Zimbabwe
The local Ruedi Lüthy Foundation organisation ensures the smooth running of Newlands Clinic, while the Ruedi Lüthy Foundation provides the necessary funding. The accounts of Ruedi Lüthy Foundation Zimbabwe, the Training Centre and the Women's Health Centre were audited by Grant Thornton in Harare, and have been consolidated in the present financial statements.

Organisation and remuneration
The members of the Board of Trustees (see page 15) work in an honorary capacity and are elected for a term of four years; repeated re-election is permitted. They are responsible for the strategic management of the foundation and for managing the assets. The salaries and fees of the CEO and Deputy CEO totalled around CHF 175,000, including employer contributions. Around CHF 77,000 of this fell to project expenses and CHF 98,000 to general expenses.

Given the unstable situation in Zimbabwe and the pandemic, it is again difficult to predict how costs will develop in 2021. The Newlands Clinic team is doing everything in its power to keep operations going in this difficult situation and provide patients with security; this requires a great deal of flexibility. On the income side we hope to be able to continue relying on our community of loyal donors.

Please read more in our <link en/news/publications.html - internal-link>Annual Report 2020</link>.