ECF is a fundraising organisation with its own funds – a so-called ‘hybrid organisation’. Our aim is to cover our overhead costs through the income generated by investing our own funds. This allows us to dedicate all other funds to our objectives.
Income in 2012
Our income in 2012 consisted of lottery funding (through the Prins Bernhard Cultuurfonds), fundraising (including income from governments and foundations) and securities. Our total income in 2012 was €6,840,667 compared to €5,898,994 in 2011.
Here is a more detailed breakdown of our income.
Third-party income
Our total third-party income for 2012 was €5,662,844, compared to €5,613,187 in 2011. This amount includes income from the Prins Bernhard Cultuurfonds and other organizations. It excludes income from governments and securities.
Income from the Prins Bernhard Cultuurfonds for 2012 was €5,109,838 compared to €5,330,196 in 2011. This decrease in funding from the Prins Bernhard Cultuurfonds is a result of declining income from the lotteries due to changing market conditions.
The remaining third-party income came from various foundations, and all donations were related to specific activities. For 2012, this remaining third-party income was €553,006 compared to €300,844 in 2011 (this takes into account the correction made on income from the German Marshall Fund of the United States). The main increase came from the Robert Bosch Foundation for ECF’s Neighborhood programme and various sections of the Open Society Foundation supporting our Grants activities.
Government income
Income from various governments in 2012 was €263,060, compared to €254,523 in 2011 (this takes into account the correction made on income from the German Marshall Fund of the United States).
Income from securities
In 2012, the total income from securities was €914,563, compared to €13,431 in 2011. The investment mix throughout the year has been consistent with ECF’s ‘statement of investment principles’ consisting of a maximum of 30% of the portfolio invested in shares and the remaining 70% in bonds.
ECF has outsourced its asset management activities to a third party asset manager.
How ECF’s income is used
ECF dedicates all its income to its three overarching objectives, which are:
- Empowering and engaging people through arts and culture
- Linking cultural policy and practice
- Connecting sources of knowledge for the future
The ambition is to cover all overhead costs with income from securities.
ECF’s reserve is used as a buffer in case of an emergency.
A potential surplus as a result of lower expenditure than income will be temporarily added to ECF’s reserve and will be used for objective-related activities in the following year(s).