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ANNUAL REPORT

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Annual Report 2011 / Finn Church Aid

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Page 1: Annual Report 2011

AnnuAl RepoRt

Page 2: Annual Report 2011

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Green schools in Haiti– I’m very proud of this school, says Nagela Napoleon. The building is beautiful and means a lot to us. I helped build the school, and my sons will study here. This is our school.

In 2011, Finn Church Aid completed two school (including 200 school tents, 240 semi-per-manet schools and more than 10 permanent school centers well on the way) centres in Haiti: St. Matthieu School in Léogâne and St. Joseph School in Jacmel. The schools are environmentally friendly, and they were built to withstand earthquakes and tropical storms. The local com-munities actively participated in the planning and construction. Photo: Outi Kirkkopelto

New climate tool– The consideration of climate sustainability in project planning contributes to development goals. In Nepal, the effects of climate change are already evident, but not all risks are recognised. It is a priority to mitigate the effects that have an impact on the poorest people, says Krishna Pathak, who works as programme coordinator for Finn Church Aid’s local partner organisation.

In 2011, Finn Church Aid intro-duced a climate toolkit for improv-ing sustainability in development cooperation projects. The tool enables better preparation for and adaptation to the effects of climate change in the most affected devel-oping countries.Photo: Paul Jeffrey/ACT

Villagedevelopment in CambodiaLast year, An Choun was selected as leader of the women’s group in the village of Speantumneab. She now provides useful information for many of the families in her village. New information on farm-ing techniques and the raising of chickens has also helped her per-sonal finances: she has been able to put aside some of the income from selling chickens, mangoes, sugar cane and vegetables.

– I’m going to use the money to repair my house and buy seeds. The savings will also en-able my children to go to school, says Choun.

Finn Church Aid’s village development work in Cambodia educates people to coordinate their efforts as a group, enhance the efficiency of farming, prepare for natural catastrophes and de-mand their rights to be respected.Photo: Lauri Soini

HigHligHts

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Finn Church Aid headed its first ACT programme Finn Church Aid supervised the ACT Alliance’s aid programme for refugees from the Ivory Coast in Liberia. This was the first time Finn Church Aid was responsible for project management in an ACT aid operation. Announced in March, the programme was carried out by five local organisa-tions and involved about 44,000 refugees and 20,000 locals. The budget was approximately EUR 1.9 million. The programme included health care, the building of wells and ovens, the renova-tion of roads, farming education, psychosocial support and peace education. The programme ran until the end of 2011.Photo: Finn Church Aid

Women’s Bank is going strong Under one year, the number of month-ly donors of Women’s Bank doubled and nine new area cells started their operation. In all, over 1.1 million euros were received as donations.

In 2011, the 30 local groups of the Women’s Bank organised more than 200 events across Finland.

The events included cinema screenings, designer jumble sales, knitting and sewing bees, concerts, exercise groups, book clubs, themed evening events and dinner parties. This tireless voluntary work has resulted in tens of thousands of euros for the benefit of women in developing countries.

– It feels good to be able to truly help women in difficult life situations, says a Women’s Bank volunteer from Hämeenlinna.Photo: Laura Laiho

Clean water to IkotosIn South Sudan, a 17-kilometre pipeline carries clear and cold water from the Imatong Mountains to Ikotos, providing the 15,000 resi-dents and about 40,000 returnees with clean water. The pipeline was inaugurated in March 2011, after a four-year construction project.

– Clean water makes a differ-ence in itself, but it also builds rapport among villagers, says Mary Jina Achucok, chair of the women’s organisation in Ikotos.

– Before this, the queues for wa-ter at wells were long, and people used to quarrel. Now water is avail-able from dozens of outlets, with no need for people to crowd one another. Moreover, mortality among children under five has decreased.Photo: Ben Malinen

HigHligHts

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ouR MissionFinn Church Aid aims to change the world through action for human dignity.

ouR VisionThe lives and human dignity of

people in the weakest positions will be enhanced wherever we work.

Defending human dignity is the basis for all of our work. People must have their basic human rights re-alised so that they have an opportu-nity to live a dignified life.

ouR coRe VAlues• Unconditional love for our

neighbours• Unyielding hope• Courage• Quality

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In recent years at Finn Church Aid, we have changed our ways of working and established regional and country offices to support our partners and local commu-nities closer to our areas of operation. These changes have presented challenges, but also produced undisputed results.

For example, since the earth-quake in Haiti, we have helped build 400 schools (including tent schools, semi-permanent schools and perma-nent school centers). In 2011, we su-pervised the ACT Alliance’s aid pro-gramme for refugees from the Ivory Coast in Liberia. This was the first time we were responsible for project manage-ment in an ACT operation. In the Horn of Africa, we helped victims of famine and the conflict in Somalia in cooperation with organisations of the ACT Alliance. We also contributed to the long-term solution of the crisis in Somalia by help-ing the country establish a council of elders, the equivalent of a parliamentary upper house.

Continuous commitment from our supporters has made these and many other concrete results possible. At the same time, awareness of our organisation has increased, and we are able to keep our supporters even better informed about the results of our work than before. We have also served our supporters by creating more diverse ways for them to par-ticipate.

Finn Church Aid is in the process of pre-paring a strategy for 2013–2016. The main purpose of the strategy is to help us focus our operations. We want to change the world with our partners. We believe this is possible, even for a small organisation, if we target our re-sources wisely.

We hope our supporters and partners will accept our heartfelt thanks for working with us to ensure human rights for all.

Antti Pentikäinen

Executive Director

Together, we can reduce poverty

These changes havepresented challenges,but also producedundisputed results.

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guAteMAlAHAiti

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HonDuRAs

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HAiti countRy officepoRt-Au-pRince

• In 2011, the office had a staff* of 14.• The annual budget** was approximately

EUR 2.7 million.• Operations focused on rebuilding schools

and preventing epidemic cholera.

soutH suDAn countRy officeJubA

• At the end of 2011, the staff comprised three people.

• The annual budget was nearly EUR 1.4 million.

• Operations focused on supporting the wa-ter, education and food security sectors and on humanitarian assistance in South Sudan and Darfur.

West AfRicA RegionAl office MonRoViA, libeRiA

• At the end of 2011, the staff comprised 11 people.

• The annual budget was approximately EUR 1.8 million.

• In Liberia and Sierra Leone, FCA improved income opportunities and food security and promoted women’s rights and educa-tion. In Liberia, FCA improved water supply and health care for refugees from the Ivory Coast. In Mali, FCA supported food security.

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centRAl AfRicA RegionAl officegoMA, DeMocRAtic Republic of tHe congo

• At the end of 2011, the staff comprised five people.

• The annual budget was approximately EUR 1.9 million.

• The activities focused on the provision of humanitarian aid in the Eastern Congo and Chad. In DRC and Burundi FCA supported recovery and rehabilitation through enhanced livelihood security, water and sanitation and psychosocial support. Women’s rights and conflict resolution activities promoted peace and stability, while trainings for local partners strengthened civil society’s capacity and ownership.

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* Staff for programme work and administration. In addition, support staff worked at the offices.** Includes the office budget and budgets of the programmes coordinated by the office.

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AsiA RegionAl officepHnoM penH, cAMboDiA

• Established in May 2011. At the end of the year, the staff comprised four people.

• The annual budget was approximately EUR 2.9 million.

• Operations focused on improving income and food security and empowering women finan-cially. FCA also supported its local partners.

soMAliA countRy officeHARgeisA

• At the end of 2011, the staff comprised three people. • The annual budget was approximately EUR 150 000.• Operations focused on humanitarian aid and peace

work with religious and traditional leaders in the country.

HeADquARteRs, HelsinkifinlAnD

• At the end of 2011, the staff comprised 106 people.

• Operations focused on advocacy work, civic activity, fundraising and commu-nications as well as the development of programme work and administration.

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eAst AfRicA RegionAl office,nAiRobi, kenyA

• At the end of 2011, the staff comprised four people.

• The annual budget was approximately EUR 4.5 million, including EUR 2.2 million for humani-tarian aid in East Africa.

• Operations focused on the humanitarian crisis caused by the drought in East Africa and on supporting local partners and programmes.

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Page 8: Annual Report 2011

In recent years, Finn Church Aid and many of its partners have gradually adopted a rights-based approach to their work. The role and significance of human rights in reducing poverty is recognised practically everywhere, but it takes time to change traditional models and learn new roles.

People should not be divided into those who help and those who need to be helped. We are all equal and have equal rights. In some countries, human rights are respected. In other countries, governments and authorities neglect their obligations, and people need to demand rights and respect. Everywhere in the world, sustainable development requires a well-functioning society, active people and accountable governments that honour their obligations.

In practice, however, the situation is often complicated and far from be-ing easy, because weak social and legal systems render rights merely theoretical. In Haiti, for example, the constitution includes children’s right to education, but the country is poor and unable to educate most of its young. Those who have the opportunity to attend education often have to do so in substandard conditions. However, it is essential that people un-derstand that their children have a right to education. Amidst utter poverty and after disasters, it is often churches and non-governmental organisations that make education possible – but this by no means frees the government from its obligations. Under any conditions, governments must strive to provide education for children and respect all other rights.

Equal rights for all

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Page 9: Annual Report 2011

Equal rights for all

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The rights-based approach also involves risks. People claiming their rights to be respected may cause tension and conflict within communities, because the rights-based ap-proach challenges and changes existing power structures. This approach also requires an ability to negotiate, resolve conflicts and anticipate developments.

The rights-based approach empowers people as subjects and rights holders, but as part of society and its structures. It stresses the importance of mutual responsibility, openness and accountability. Universal human rights also serve as a strong foundation for interaction and understanding between people from greatly different backgrounds. In so doing, they help build a common vision of the future.

Sylvia RauloManager, Quality Insurance and AccountabilityFinn Church Aid

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Parbati Shrestha grows tomatoes under shel-ters made of greenhouse plastic on a patch of land that she shares with two other women. The three women are members of Gupteswori, a cooperative supported by Finn Church Aid in Lalitpur in Ne-pal.

The shelters enable the women to grow toma-toes for a longer period than would be possible on open land. Their simple irrigation system en-sures that the seedlings will not suffer from aridity. Each season, the women plant some 200 seedlings, which produce about 2,000 kilos of tomatoes.

They negotiate selling prices based on mar-ket prices, which they check from Kathmandu by

phone. After reaching agreement, they send the to-matoes to a supplier by bus, along with tomatoes from other producers in the cooperative. This re-duces costs and facilitates sales in Kathmandu, the capital of Nepal.

– The cooperative has supported us in many ways. The women in our village are more active than before, and improved income enables their children to go to school. The women also feel fre-er than before: they can leave the house and earn money for the family, says Shrestha.

Poverty means undrinkable water and poor nutrition or extreme hunger. It also means social ex-clusion, inequality and infringements of human rights. Moreover, poverty means a lack of health care and educational opportunities.

Our work covers the many effects of poverty and seeks to alleviate or eliminate them. It also af-fects the structural causes of poverty and insecurity. In 2011, we paid special attention to securing food for everyone through fair food policies and appropriately targeted support measures.

We affect the structuresthat produce poverty

Improved incomegives a feelingof freedom

SUSTAINABLE

LIVELIHOODS

Parbati Shrestra is harvesting tomatoes.

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We Also DeciDeD to collect All tHe plAstic RubbisHfRoM tHe stReetsin My coMMunity.

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Right to development means that everyone has the right to influence the processes of development. In 2011, Finn Church Aid supported an educational programme for young people in Honduras through the Lutheran World Federation. The programme prepared young people to serve as environmental advocates in their communities.

– This programme has helped me a lot. I have learned about protecting natural resources, and now I can work together with young people from other communities, says Suany Favián, one of the partici-pants.

During the programme, the participants learned to collaborate and became a close-knit group. They have also worked actively with local environmental organisations.

After com-pleting the pro-gramme, the participants organ-ised workshops and educational events related to protecting the environment and natural resources in local schools and communities.

– We also decided to collect all the plastic rub-bish from the streets in my community. In addition, we started an afforestation campaign in the Rio Teli-ca valley, says Favián.

– I’m more committed than before to contribut-ing to my community. I’m also more aware of the need to protect our natural resources. I will make use of opportunities to promote what I learned dur-ing the programme.

All people have equal human rights. However, due to various social reasons, the rights of all people are not respected equally.

We work to ensure that the rights of the most disadvantaged groups are respected. When people know their rights, they can participate in building a better society. The duty bearers must also know and fulfill their responsibilities.

Poverty goes hand in hand with the non-realisation of human rights. For this reason, promoting hu-man rights is integral to everything we do.

In 2011, among other projects, we supported the work of human rights observers in Nepal and Central America and defined policy principles for the implementation of a rights-based approach in our interna-tional programme.

A dignified life for all

Young peoplefor the environment

RIGHTS AND

PARTICIPATION

– The Earth belongs to everyone. Some people have died already, others still live, but the majority of people have not been born yet. Let’s protect our environment, is written on the board which is held by Suany Favián.

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WHAt About WoMen’sRigHts?

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Spanning more than two decades, the conflict in Somalia has turned the country into one of the world’s most fragile nations. People lack the means to demand rights, and the temporary government is unable to ensure human rights for all. We seek to in-crease social stability in Somalia by affecting the un-derlying causes of its fragility. Many of the solutions can be found within the country, but international organisations play an important role in the process.

December 2010 marked a milestone after a long period of preparation: the religious and traditional leaders of Somalia, as well as the United Nations, thanked Finn Church Aid for bringing the two par-ties to the same table for the first time. This impor-tant step was made possible by the trust developed by Finn Church Aid’s long-term work at the grass-roots level and the trust the organisation enjoys within the United Nations.

The event marked the be-ginning of a se-ries of negotia-tions as well as a peace-building and state-building process coordi-nated by the United Nations, in which the voices of both the religious and traditional leaders of Somalia were guaranteed to be heard. The leaders, however, were all men. What about women’s rights? How could women’s voices be heard?

In late June 2011, during the negotiations, the tradi-tional leaders expressed a wish to establish a Guurti – a council of elders – in central and southern Somalia. It could play an important role in bringing stability to Somalia. The potential role of the Guurti was further emphasised when the traditional leaders announced that 50 of its 200 members should be women.

War, conflict and social unrest are the greatest threats to human rights and justice, which in turn are prerequisites for sustainable develop-ment.

In 2011, Finn Church Aid supported peace work at the grass-roots level in South Sudan, for exam-ple. It also helped create links between the grass-roots level and the peace negotiations in Somalia, which were carried out in international forums.

South Sudan gained independence in 2011. During this important year, Finn Church Aid

supported peace, democracy and elections edu-cation in the country with good results. Voter turnouts were high in areas where the organisa-tion operates, and surprising candidates were elected – not just the favourites.

In addition, Finn Church Aid supported the ecumenical forum in Sudan as well as Samuel Kobia, Ecumenical Special Envoy of the All Af-rica Conference of Churches (AACC). The role of churches is particularly important in conflict mediation and reconciliation between tribes.

Peace work on many levels

Buildinginteraction

STABLE

SOCIETIES

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Traditional leaders in Somalia expressed their aspiration to from a guurti, a council of elders, which could have a significant role in stabilizing the country.

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The most severe disasters in 2011 was the hunger caused by the drought in East Africa, where more than 13 million people needed disaster relief. The conflict in Somalia made the situation even worse, driv-ing people away from their home regions. The United Na-tions officially declared famine in six regions in Somalia.

Finn Church Aid assisted hunger victims in the Dabaab camp in Kenya and in Soma-lia, Ethiopia and Djibouti. The number of residents in the Da-baab camp doubled because of

an increase in refugees, primar-ily those from Somalia. Finn Church Aid provided help in collaboration with the ACT Al-liance.

gooD ReputAtionopeneD DooRs foR HelpDelivering assistance to So-malia proved to be particularly challenging. However, Daryeel Busho Guud (Help for All) – the local partner of the ACT Alliance – succeeded in providing aid to areas governed by the Islamist group al-Shabaab as well as those administered by the tem-

porary government of Somalia. “We contacted both par-

ties and convinced them of our neutral stand,” says Omar Olad Ahmed, Director of Daryeel Busho Guud.

In Somalia, the ACT Alli-ance delivered rice, corn, beans, cooking oil and sugar in Moga-dishu, the capital, and Gedo, an area severely struck by the drought. Drinking water was supplied in water tanks and new wells were drilled and old ones renovated. In addition, latrines and hygiene kits were delivered.

Drought and conflict plagued the Horn of Africa

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pRepAReDness ActionsenHAnce DisAsteR ReliefDisasters cannot always be prevented, but their effects can be reduced. Reducing the effects often depends on having plans in place before a disaster strikes. Finn Church Aid’s goals for 2011 included the creation and development of prepared-ness plans for our countries of operation, with the aim of enabling organisations, communities and individuals to effec-tively anticipate, respond to, and recover from the impacts of a disaster.

We made plans for the following countries:• South Sudan• Liberia• Palestine Territories• Democratic Republic of the Congo• Haiti

Humanitarianaid in 2011

Angola – humanitarian mine action EUR 500,000

Afghanistan – drought EUR 40,000

Cambodia – flood relief EUR 81,265

Cambodia – humanitarian mine action EUR 250,000

Chad – additional communicationscapacity for a partner of FCA EUR 45,000

Chad – disaster relief EUR 300,000

Democratic Republic of the Congo– disaster preparedness EUR 800

Democratic Republic of the Congo– food security EUR 600,000

East Africa – drought andrefugee programmes EUR 1 600,000

El Salvador – flood relief EUR 50,000

Haiti – preparations forthe Atlantic hurricane season EUR 50,000

Indonesia – tsunami relief forthe Mentawai Islands EUR 50,000

Jordan – humanitarian refugee project EUR 40,000

Kenya – water and sanitation projectin Kakuma, Turkana EUR 5,000

Liberia – aid for refugeesfrom the Ivory Coast EUR 457,967

Mali – drought EUR 300,000

Myanmar – water and sanitation project EUR 134,657

Pakistan – flood relief EUR 50,000

Palestine/West Bank– improving the financial situation of vulnerable households EUR 85,000

Sri Lanka – flood relief EUR 40,000

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In July alone, tens of thousands of Somali women and children arrived at the world’s largest refugee camp of Dadaab in Kenya.

Page 18: Annual Report 2011

Finn Church Aid participates in the Evangeli-cal Lutheran Church of Finland’s international diaconia in collaboration with international organisations, local civil society actors and other Finnish agencies.

Finn Church Aid is a founding member of the ACT Alliance. ACT is an alliance of churches and church-related organisations that work together in development work, humanitarian aid and advocacy. It is one of the largest aid agencies in the world. ACT Alliance has 125 members and it operates in 140 countries. ACT Alliance mobilizes approximately EUR 1.6 billion annu-ally on working for and with those living in the poorest countries of the world. In 2011, Finn Church Aid participated in a variety of humani-tarian actions in cooperation with other ACT members. FCA also supported the development of global advocacy within the Alliance.

Lutheran World Federation (LWF) is FCA’s oldest and by volume the single largest partner in implementing development and humanitar-ian aid programs. In 2011 FCA cooperated with

17 LWF country programs FCA also supported LWF member churches’ small scale development projects and LWF’s global advocacy.

Finn Church Aid supports the programmes of the World Council of Churches (WCC), which promote equality, human rights, peace and fair international trade. In 2011, Finn Church Aid participated in WCC’s peace work in particular.

We also enhanced our cooperation with UN organisations, especially in education. Finn Church Aid participated in the global Education cluster cooperation specializing in Education in Emergencies. We collaborated with the United Nations Children’s Fund (UNICEF), Development Programme (UNDP), Population Fund (UNFPA), Refugee Agency (UNCHR), Political Office for Somalia (UNPOS) and Humanitarian Response Depot (UNHRD) during various crises.

In addition to international partners, Finn Church Aid has a growing number of small bilateral partners. These local partners include churches and church-related diaconal organisa-tions as well as other ngos and civil society actors.

Partners and cooperation networks

Finn Church Aid supports – or is a member of – various networks and thematic organisations. APRO-DEV is an advocacy association of European development organisations related to the World Coun-cil of Churches. Its main tasks include promoting fairness and reducing poverty by influencing the European Union’s development cooperation policies as well as providing information to its member organisations. Finn Church Aid is also a member of VOICE (Voluntary Organisations in Cooperation in Emergencies), a network of European non-governmental organisations providing humanitarian aid, and the Ecumenical Advocacy Alliance (EAA).

In its home country, Finn Church Aid is a member of Kepa, the umbrella organisation for Finn-ish civil society organisations involved in development cooperation or otherwise interested in global affairs. It is also a member of Kehys, the national platform of CONCORD, the European federation of non-governmental relief and development organisations. Finn Church Aid collaborates closely with dioceses and parishes as well as the Common Responsibility Campaign in the field of international diaconia. We are a member of the Finnish Ecumenical Council.

Networks

Finn Church Aid is a partner organisation of the Ministry for Foreign Affairs. Finn Church Aid has a funding agreement of EUR 22.2 million with the Ministry for 2010–2012. In addition, Finn Church Aid has an agreement with ECHO (European Commission’s Humanitarian Aid Department) for 2008–2012.

Ministry for Foreign Affairs partner organisation

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Partners and cooperation networks AdministrationThe Finn Church Aid Foundation is governed by an 11-member Board of Directors appointed by the Council for International Relations of the Evangelical Lutheran Church of Finland. A three-member work-ing subcommittee supports the work of the Board. The Board has three deputy members. In 2011, the Board convened six times and the subcommittee convened 14 times. Pauliina Parhiala served as Executive Director until 30 September 2011 and was succeeded by Antti Pentikäinen on 1 October 2011.

Board of Directors in 2011:Anni Vepsäläinen, Managing Director, ChairMatti Repo, Bishop, Vice-Chair

Members: Pekka Haavisto, Member of Parliament Tarja Kantola, International AdviserRitva Koukku-Ronde, Under-Secretary of State (until August 18) Pia Kummel-Myrskog, Head SecretaryKimmo Kääriäinen, Ecclesiastical CounsellorTapio Luoma, VicarRitva Ohmeroluoma, MBASirpa Pietikäinen, Member of EU Parliament (from August 12)Helena Tuominen, Diocesan SecretaryMerja Ylä-Anttila, Editor-in-Chief

Deputy members:Ilkka Mattila, DirectorTuomas Aho, AttorneyHenni Alava, Master of Social Sciences

Secretary:Pauliina Parhiala until 30 September 2011, Antti Pentikäinen from 1 October 2011

Expert members invited by the Board:Heikki Huttunen, General Secretary, Finnish Ecu-menical CouncilKalle Kuusimäki, Director of Diaconia, Evangelical Lutheran Church of FinlandRisto Jukko, Director, Office for Global Mission, Evangelical Lutheran Church of FinlandRiina Nguyen, Project Manager, Orthodox Church Aid from Finland (OrtAid)

Working subcommittee in 2011:The subcommittee was chaired by Anni Vepsäläin-en, Chair of the Board (deputy: Kimmo Kääriäinen). The members of the subcommittee were Helena Tuominen (Tarja Kantola) and Pia Kummel-Myrskog (Tuomas Aho). The secretary of the subcommittee was Pauliina Parhiala until 30 September 2011, suc-ceeded by Antti Pentikäinen on 1 October 2011.

The members of the Board of Directors’ audit com-mittee, founded in 2011, were Ritva Ohmeroluoma (the chair), Tuomas Aho and Henni Alava.

From 1 October 2011, Executive Director Antti Pentikäinen represented Finn Church Aid in the following cooperation organisations: Department for Foreign Affairs, Evangelical Lutheran Church of Finland; Committee for Global Mission, Evan-gelical Lutheran Church of Finland; Yle Helps Foundation of the Finnish Broadcasting Company; Orthodox Church Aid from Finland; Common Responsibility Campaign; Helsinki Diaconess Insti-tute Foundation.

Pentikäinen served as Director of Conflict Transformation for Religions for Peace in the United States until 30 September 2011.

Finn Church Aid was also represented in the following groups and organisations:Advisory Committee for Civilian Crisis Management, organisational divisionThe Development Policy CommitteeThe Friday Group of the Parliamentary Group on Population and DevelopmentThe Finnish NGO Foundation for Human Rights (KIOS)Civil Society Conflict Prevention Network (KATU)Climate Action Network Europe CAN-ECoordination Europe Haiti COEHEcumenical Week of Responsibility, cooperation groupThe Evangelical Lutheran Church of Finland’s work-ing group on ecumenical connectionsThe Evangelical Lutheran Church of Finland’s advi-sory committee on human rights (KION)The Eastern Europe working group of the Council for International Relations of the Evangelical Lutheran Church of FinlandFinnish Somalia NetworkThe Ingria advisory committee of church organisationsRefugee Advice CentreNetwork 1325 (women and peace))

Social ResponsibilityFinn Church Aid ensures social responsibility through ethically and ecologically sound opera-tions. Finn Church Aid is• A Green Office certified by WWF• A fair trade workplace and a founding mem-

ber of Fairtrade Finland. We use fair trade products.

• A member of Finnwatch, an organisation studying and monitoring Finnish companies operating in developing countries.

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Mika Niikko, Member of Parliament from the True Finns Party, engaged in a conversation with Maija Sankari, Communications Manager for Finn Church Aid, in front of Parliament House in May 2011, as part of a discussion event organised by KEPA.

Parliament makes decisions that have an effect in countries beyond the borders of Finland – includ-ing developing countries. Before the parliamentary elections in the spring of 2011, Finn Church Aid ac-tively engaged in advocacy work in an effort to include global fairness in the programmes of political parties and, eventually, the government.

As part of its advocacy work, Finn Church Aid made recommen-dations related to food security, climate change and peace work, among other issues. Before the elections, it discussed these recom-mendations with all parliamentary

parties in meetings or by phone. A total of 19 influential politicians participated in these interactions. Before the government negotia-tions, Finn Church Aid contacted all those involved.

Many issues that are important for Finn Church Aid were included in the government programme in some way. For example, Finn Church Aid’s recommendations for preparing a climate act and a strat-egy to support vulnerable countries were recorded in the programme.

Finn Church Aid continued its advocacy work after the elections. In May, its employees and voluntary

workers discussed global issues with Members of Parliament in an event organised by the Develop-ment Cooperation Service Centre (KEPA). In early autumn, Finn Church Aid and KEPA organised a briefing about the crisis in East Africa for the assistants of Mem-bers of Parliament. In addition, Finn Church Aid informed the parliamen-tary group of the True Finns Party about food security in a discussion event organised by KEPA.

Making a difference at home and abroad

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Our operations in Finland focused on campaigns, fundraising and communications.

For the second consecutive year, our main campaign was “Hun-ger, more than you can chew”. The campaign was supported by the Spoon campaign in social media. Finn Church Aid’s contact persons and other voluntary workers in parishes were particularly active in this campaign.

Major fundraising events includ-ed Idol Gives Back, a programme

seen for the first time on Finnish television. The programme provided information on young people’s lives in developing countries and recruited monthly donors for Finn Church Aid.

Finn Church Aid further developed its voluntary activities, adding a new dimension: coopera-tion with companies. In addition to companies, many people wanted to contribute their professional ex-pertise to Finn Church Aid through voluntary work.

The Women’s Bank – a fund and network of volunteers for the benefit of women in developing countries – continued to grow. Nine new local groups were established in 2011.

The youth network Change-maker – operating in conjunction with Finn Church Aid – also at-tracted new volunteers in 2011.

The main campaign of the Changemakers focused on increasing awareness of the unfair debt that developing countries are burdened with.

Voluntary work is increasingly popular

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Making a difference at home and abroad

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Finn Church Aid Programme Areas 2011

Programme areas (Euro) LWF WCC ACT Bilateral Own/other Total %Area projects Africa 4 787 098 0 1 844 902 3 272 992 1 739 570 11 644 561 45,3 %Asia 1 072 679 0 266 148 1 913 892 196 963 3 449 683 13,4 %Middle East 0 75 162 70 337 575 454 67 833 788 786 3,1 %Latin America 742 578 0 68 238 374 673 2 448 686 3 634 174 14,1 %Europe 0 0 0 733 722 23 817 757 539 2,9 %Global programmes 785 746 422 957 240 991 117 411 449 162 2 016 267 7,8 %TOTAL 7 388 101 498 119 2 490 616 6 988 144 4 926 031 22 291 010 86,7 %Planning and monitoring 3 424 590 13,3 %

INTERNATIONAL WORK TOTAL 7 388 101 498 119 2 490 616 6 988 144 4 926 031 25 715 600 100,0 %

AFRICA LWF WCC ACT Bilateral Own/other Total %Country projects Angola 553 953 467 043 1 020 996 8,8 %Burundi 177 154 16 302 193 456 1,7 %Eritrea 669 751 669 751 5,8 %East Africa regional* 707 406 553 177 341 786 1 602 369 13,8 %Congo dem. republic 751 772 18 821 266 731 295 495 1 332 819 11,4 %Liberia och West Africa 13 696 1 000 681 432 193 1 446 570 12,4 %Mozambique 715 522 46 878 762 400 6,5 %Sierra Leone 376 916 152 934 529 850 4,6 %Somalia 7 748 868 112 352 639 207 375 1 435 875 12,3 %Sudan 7 847 381 464 260 534 277 182 927 026 8,0 %Chad 345 540 9 632 16 302 371 474 3,2 %Uganda 850 405 51 000 901 405 7,7 %Zimbabwe 106 000 106 000 0,9 %Africa, other 344 571 344 571 3,0 %

TOTAL 4 787 098 0 1 844 902 3 272 992 1 739 570 11 644 561 100,0 % LWF = Lutheran World Federation WCC = World Council of Churches ACT = ACT Alliance

* incl. Etiopia and Kenya

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Finn Church Aid Programme Areas 2011 ASIA LWF WCC ACT Bilateral Own/other Total %Country projects Afganistan 327 190 327 190 9,5 %Bangladesh 340 560 340 560 9,9 %India 139 603 139 603 4,0 %Cambodia 225 683 22 765 830 547 71 862 1 150 857 33,4 %Myanmar 80 000 48 690 128 690 3,7 %Nepal 751 277 32 140 783 417 22,7 %Pakistan 193 383 97 000 7 851 298 235 8,6 %Asia, other 15 719 50 000 146 853 68 559 281 131 8,1 %

TOTAL 1 072 679 0 266 148 1 913 892 196 963 3 449 683 100,0 %

MIDDLE EAST*

LWF WCC ACT Bilateral Own/other Total % projects TOTAL 0 75 162 70 337 575 454 67 833 788 786 100,0 %* The Palestinian Territories, Jordan, Lebanon, Syria

LATIN AMERICA AND THE CARIBBEAN LWF WCC ACT Bilateral Own/other Total %Country projects

Central America** 458 928 50 000 15 000 523 928 14,4 %Peru 207 486 207 486 5,7 %Haiti 283 650 18 238 137 187 2 448 686 2 887 760 79,5 %Latin America, other 15 000 15 000 0,4 %

TOTAL 742 578 0 68 238 374 673 2 448 686 3 634 174 100,0 %

**including Guatemala, El Salvador, Honduras

EUROPE LWF WCC ACT Bilateral Own/other Total %Country projects

Kosovo 243 318 16 497 259 814 34,3 %Serbia 83 000 83 000 11,0 %Russia 314 060 314 060 41,5 %Europe, other 0 93 344 7 320 100 665 13,3 %

TOTAL 0 0 0 733 722 23 817 757 539 100,0 %

Page 24: Annual Report 2011

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incoMe stAteMent

Euro 1.1. - 31.12.2011 1.1. - 31.12.2010

ACTUAL OPERATIONS Aid activities Income From the Government 12 643 810,03 11 514 621,86 From the EU 40 000,00 135 924,54 From parishes 7 833 443,36 8 117 224,59 International funding sources 1 159 936,76 1 010 698,47 Other income 56 853,47 117 711,04 21 734 043,62 20 896 180,50 Expenditure Direct aid -19 496 306,50 -16 778 048,89 Staff expenditure -3 965 024,07 -3 299 290,86 Other expenditure -2 254 269,60 -2 095 311,55 -25 715 600,17 -3 981 556,55 -22 172 651,30 -1 276 470,80

Support functions for aid activities Communications, education and advocacy work

Income 512 586,40 502 632,33 Expenditure Staff expenditure -858 686,26 -684 972,80 Other operational expenditure -1 064 031,79 -1 092 638,64 -1 922 718,05 -1 410 131,65 -1 777 611,44 -1 274 979,11General administration Income 5010,43 59,47 Expenditure Staff expenditure -1 015 957,54 -858 916,00 Other operational expenditure -247 365,44 -144 162,61 -1 263 322,98 -1 258 312,55 -1 003 078,61 -1 003 019,14

Trading deficit of actual operations -6 650 000,75 -3 554 469,05

FUNDRAISING Income Donations fromprivate persons 6 561 435,33 5 053 776,49 From companies and organisations 712 927,91 531 987,69 Other income 4 162,89 0,00 7 278 526,13 5 585 764,18 Expenditure -2 038 471,49 5 240 054,64 -1 408 535,10 4 177 229,08

Income/trading deficit -1 409 946,11 622 760,03

INVESTMENT AND FUNDING OPERATIONS Income 222 913,58 118 253,31 Expenditure -64 832,10 158 081,48 -7 529,71 110 723,60

Income/trading deficit -1 251 864,63 733 483,63

GENERAL APPROPRIATIONS Operational assistance from the Church Council 655 000,00 638 000,00

Profit before fund appropiations -596 864,63 1 371 483,63

FUND APPROPIATIONS Appropriations to Aid Fund -1 409,34 -1 051,78

FINANCIAL YEAR SURPLUS/DEFICIT -598 273,97 1 370 431,85

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incoMe stAteMent

Euro 1.1. - 31.12.2011 1.1. - 31.12.2010

ACTUAL OPERATIONS Aid activities Income From the Government 12 643 810,03 11 514 621,86 From the EU 40 000,00 135 924,54 From parishes 7 833 443,36 8 117 224,59 International funding sources 1 159 936,76 1 010 698,47 Other income 56 853,47 117 711,04 21 734 043,62 20 896 180,50 Expenditure Direct aid -19 496 306,50 -16 778 048,89 Staff expenditure -3 965 024,07 -3 299 290,86 Other expenditure -2 254 269,60 -2 095 311,55 -25 715 600,17 -3 981 556,55 -22 172 651,30 -1 276 470,80

Support functions for aid activities Communications, education and advocacy work

Income 512 586,40 502 632,33 Expenditure Staff expenditure -858 686,26 -684 972,80 Other operational expenditure -1 064 031,79 -1 092 638,64 -1 922 718,05 -1 410 131,65 -1 777 611,44 -1 274 979,11General administration Income 5010,43 59,47 Expenditure Staff expenditure -1 015 957,54 -858 916,00 Other operational expenditure -247 365,44 -144 162,61 -1 263 322,98 -1 258 312,55 -1 003 078,61 -1 003 019,14

Trading deficit of actual operations -6 650 000,75 -3 554 469,05

FUNDRAISING Income Donations fromprivate persons 6 561 435,33 5 053 776,49 From companies and organisations 712 927,91 531 987,69 Other income 4 162,89 0,00 7 278 526,13 5 585 764,18 Expenditure -2 038 471,49 5 240 054,64 -1 408 535,10 4 177 229,08

Income/trading deficit -1 409 946,11 622 760,03

INVESTMENT AND FUNDING OPERATIONS Income 222 913,58 118 253,31 Expenditure -64 832,10 158 081,48 -7 529,71 110 723,60

Income/trading deficit -1 251 864,63 733 483,63

GENERAL APPROPRIATIONS Operational assistance from the Church Council 655 000,00 638 000,00

Profit before fund appropiations -596 864,63 1 371 483,63

FUND APPROPIATIONS Appropriations to Aid Fund -1 409,34 -1 051,78

FINANCIAL YEAR SURPLUS/DEFICIT -598 273,97 1 370 431,85

bAlAnce sHeet

Euro 31.12.2011 31.12.2010 ASSETS FIXED ASSETS Intangible assets IT software 120 166,28 187 869,36 Tangible assets Machinery and investments 126 914,16 117 460,92 Investments Other shares and investmentst 59 406,70 64 776,05 Bond loans 942 500,00 1 001 906,70 613 200,00 677 976,05 ASSETS OF SELF-COVERED FUNDS Aid Fund, account funds and bank deposits 115 290,42 114 448,92 Receivables Short term Paid advances 2 545 707,69 2 118 562,54 Receivables carried forward 383 174,98 354 197,76 Other receivables 117 080,73 3 045 963,40 129 396,27 2 602 156,57 Cash in hand and at banks 12 160 145,37 12 239 393,62 ASSETS TOTAL 16 570 386,33 15 939 305,44 LIABILITIES EQUITY Equity capital 33 637,59 33 637,59 Self-covered funds Aid Fund 115 858,26 114 448,92 Retained earnings 6 252 615,20 4 882 183,35 Financial year surplus/deficit -598 273,97 5 803 837,08 1 370 431,85 6 252 615,20 6 400 701,71 EXTERNAL CAPITAL Current Advances received 9 454 055,75 7 999 098,17 Accounts payable 280 403,03 483 619,36 Other liabilities 160 489,88 94 852,83 Accruals and deferred income 871 600,59 10 766 549,25 961 033,37 9 538 603,73 LIABILITIES TOTAL 16 570 386,33 15 939 305,44

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Regular donors on the increaseIn 2011, Finn Church Aid received nearly EUR 7.8 million in donations from private persons and companies. Of the total, EUR 0.5 million was transferred to be used in the following years. Regular donors remained at the core of fundraising efforts. New monthly donors were recruited through street fundraising in particular.

The popularity of the Alternative Gifts scheme continued to grow, with EUR 1.4 million being raised through gifts in 2011. In addition, Finn Church Aid was pleased to receive many significant donations from private persons. Major donations and bequests are a valuable dem-onstration of trust in the work of Finn Church Aid.

In 2011, Finn Church Aid expended a total of EUR 31.0 million on aid and other operations, which represents an increase of 17.6 per cent from 2010. Total income grew by 9.6 per cent to EUR 30.4 million. The deficit for the financial period was EUR 0.6 million, which was covered by retained earnings. At the end of 2011, equity stood at EUR 5.8 million (6.4 million at the end of 2010).

Advances received for disaster relief work, recon-struction, the Women’s Bank and other operations totalled EUR 9.5 million on the balance sheet (8.0 mil-lion at the end of 2010). This includes the assets of former funds, such as the Women’s Bank.

Finn Church Aid has changed its accounting poli-cies and adjusted the comparison information from

2010 accordingly. The goal is to increase the read-ability and transparency of financial statements and meet the requirements for restricted reserves.

Finn Church Aid wants to ensure that its re-sources are used responsibly and as effectively as possible. It is one of the first development coopera-tion organisations to use enhanced internal auditing, which has been supported by the Board of Directors’ audit committee since 2011. At the same time, risk management has been incorporated into the plan-ning and evaluation of operations. Finn Church Aid is audited by PricewaterhouseCoopers.

Steady growth

At the end of 2011, Finn Church Aid had 131 em-ployees, of whom 25 worked in its field offices. In addition, its programme offices employed a total

of 56 locally recruited employees in various duties. Person-years amounted to 157 in 2011.

Personnel

Finn Church Aid is in the process of preparing a strategy for 2013–2016. The main purpose is to en-able Finn Church Aid to lead development in its areas of specialisation. The strategy will also enable the evaluation of field operations and improved coordi-nation between field operations and head office. In addition, the strategy aims to enhance effectiveness and cost-efficiency, which require resources to be targeted correctly. However, it is important to ensure that process development will not cause the focus to

shift excessively towards organisational issues and away from providing sufficient support for partners in the field and for local communities.

Changes in the operating environment and within the organisation require a clear vision and change management skills from the management. The strategy process and the related organisational evaluation will serve as a solid foundation for critical examination.

Outlook

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finn cHuRcH AiD expenDituRe 2011

Africa 37,6 11,6 Asia and Middle East 13,7 4,2 Latin America 11,7 3,6 Europe 2,4 0,8 Global programmes 6,5 2,0 Planning and monitoring 11,0 3,4 Domestic Work 12,8 4,0 Administration 4,2 1,3 TOTAL 100,0 31,0

Domestic work includes the costs of fundraising, communications ans global education in Finland. Administration includes the costs of the direc-tors’ office, finance aand general administration.

37,6 %

13,7 %11,7 %

4,2 %12,8 %

11,0 %

6,5 %

2,4 %

finn cHuRcH AiD incoMe 2011

Parish Budget Contributions 15,0 4,5Common Responsibility Campaign 6,3 1,9Church Collections 3,7 1,1Other Parish Contributions 0,8 0,2Ecclesiastical Board 2,4 0,7International Funding 3,9 1,4Ministry of Foreign Affairs 42,9 13,0Private Donations 24,0 7,3Other Income 1,0 0,3TOTAL 100,0 30,4

% EUR m15,0 %

6,3 %

3,7 %

0,8 %2,4 %

3,9 %

42,9 %

24,0 %

1,0 %

% EUR m

The figures are not comparable with those from previous years, because we have adopted accrual accounting.

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Phot

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T, K

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P.O. Box 185 / Luotsikatu 1 AFI-00161 Helsinki, FinlandTel. +358 20 787 1200Telefax +358 9 630 [email protected]