From choice, a world of possibilities Financial Financial Annual Report 2006 Statements From choiceStatements, a world of possibilities 2010 2010 From choice, a world of possibilities IPPF is a global service provider and a leading advocate of sexual and reproductive health and rights for all. We are a worldwide movement of national organizations working with and for communities and individuals. IPPF works towards a world where women, men and young people everywhere have control over their own bodies, and therefore their destinies. A world where they are free to choose parenthood or not; free to decide how many children they will have and when; free to pursue healthy sexual lives without fear of unwanted pregnancies and sexually transmitted infections, including HIV. A world where gender or sexuality are no longer a source of inequality or stigma. We will not retreat from doing everything we can to safeguard these important choices and rights for current and future generations. Contents Executive summary 2 Annual report of the Governing Council 4 Report of the independent auditors 20 Statement of financial activities 22 Balance sheets 23 Cash flow statement 25 Notes to the financial statements 27 Contact names and addresses 62 2 IPPF Financial Statements 2010 120 100 80 60 Executive Summary 40 20 0 2005 2006 2007 2008 2009 2010 Income in 2010 of US$124.2 Million Income received from governments, Figure 1: IPPF Income 2005–2010 foundations and other sources has increased over the past five years by US$m 34%. However, in 2010 income 160 decreased by US$16.0 million, a fall of 11% compared to 2009. This 140 comprised a fall in unrestricted income of US$18.2 million (19%), offset by an 120 increase in restricted income of 100 US$2.2 million (5%). 80 The fall in unrestricted income was driven by a US$9.7 million decrease in 60 Government contributions. This reflected the decision by the Canadian 40 government not to provide 20 unrestricted funding to IPPF in 2010 (2009 contribution was US$5.1 million), as well as reductions in a 2005 2006 2007 2008 2009 2010 number of other unrestricted government contributions. Increased funding of US$1.5 million from the Government of Australia helped to offset these reductions. In addition, Figure 2: IPPF’s governance structure: unrestricted legacy income decreased by US$7.4 million due to a one-off legacy of US$7.7 million having been Member Associations received in the previous year. The rise Volunteers from each Association elect their own governing body in restricted income was driven by programmes funded by the All Member Associations Governments of Denmark, Australia represented at Regional Council REC members and the United Kingdom. elected Six Regional Executive by RC Six Regional Councils We continue to receive support from Committees Meet once per year our major donors for unrestricted Meet three times per year activities, with over 62% of funds Five volunteers elected by each being available for IPPF to allocate to Regional Council to Governing Council Strategic Priority areas. This funding enables our Member Associations to Audit Committee Governing Council Membership Committee develop and sustain core programmes All regions represented, Thirty members meet All regions represented to provide SRH and advocacy services, meets twice per year twice per year meets twice per year the long term nature of the support increasing the value and impact of the contributions. IPPF Financial Statements 2010 3 Expenditure in 2010 Figure 3: Expenditure in 2010 of $126.8 million by activity 0140 of US$126.8 Million US$m 120 Expenditure on grants to Member 140 Associations and partner organizations Trading Company & Other has increased by 38% over the last five 100 years. In 2010, grants expenditure fell 120 Evaluation by only 4% to US$78.3 million, despite Capacity Building 80 the 11% drop in income. 100 Resource Mobilization The costs involved in raising resources 60 represented 2.1% of total expenditure, 80 Accreditation & Governance a fall from 2.4% in 2009. Advocacy 40 Expenditure on capacity building has 60 Abortion increased by US$4.1 million (34%), Access 20 partly due to increased activity on the 40 ‘Sexual and Reproductive Health HIV/AIDS Programme in Crisis and Post-crisis Situations in East, Southeast Asia 20 Adolescents Pacific’ (SPRINT), funded by Australia and New Zealand, and partly due to additional core investment in 2010 2009 developing Member Association infrastructure and systems. Expenditure on HIV/AIDS has increased by US$2.1 million (18%), driven by grants made in respect of the Figure 4: Expenditure in 2010 of US$126.8 million by type ‘Assessing Benefits of Integrated HIV X A Grants to Member Associations and Partners D and Reproductive Health in Africa’ F C project, funded by the Bill and Melinda B Programme activities Gates Foundation. These increases were offset by a decrease in C Support expenditure of US$3.2 million (16%) D Fundraising on adolescents, due to completion of B A the Netherlands-funded ‘Intensification X Trading company of Sexual and Reproductive Health & F Governance Rights (SRHR)’ project in 2010, as well as decreases in the areas of resource mobilisation and governance. Audit opinion Our auditors, KPMG LLP have provided an unqualified audit opinion on our 2010 financial statements. 4 IPPF Financial Statements 2010 Annual Report of the Governing Council Introduction The International Planned Parenthood IPPF currently has 153 Member The Member Associations of IPPF Federation (IPPF) is a global service Associations (MAs). These Member are all autonomous and report provider and a leading advocate of Associations are working in 164 independently, therefore their sexual and reproductive rights for countries (the Caribbean Family accounts are not presented here. all. IPPF is a worldwide movement of Planning Affiliation operates in 12 The accounts contained herein have national organizations working with countries). In addition, IPPF is active in been prepared in accordance with the and for communities and individuals, a further 10 countries where there is Statement of Recommended Practice focussing support on those who are not currently a Member Association. (SORP), Accounting and Reporting poor, marginalized socially excluded This brings the total number of by Charities, as issued by the Charity and under-served. countries in which IPPF is working Commission in 2005. to 174. IPPF works to ensure that women are able to access obstetric services in rural communities. IPPF Financial Statements 2010 5 Structure, Governance and Management Governing document Governance IPPF was formed in 1952 and IPPF is governed by a Governing incorporated in 1977 under a UK Council, composed of 30 volunteers Act of Parliament: The International from Member Associations, and Planned Parenthood Federation Act appoints a Director-General as its 1977. The Governing Council confirm Chief Executive Officer responsible for that the Strategic Framework is in managing the affairs of the Federation alignment with the purposes stated in as determined by the Governing the Act. Council. Public benefit Governing Council members are elected for a period of three years, In April 2008 the Charity Commission with elections taking place later in guidance on public benefit was 2011. In the future, each Regional considered and the recommended Council will elect four members to self-assessment for the public benefit serve as Governing Council members principles undertaken. The Governing and also elects a Regional Executive Council confirms that the aims of Committee to govern the affairs of the IPPF continues to play the organization as stated in The Region. Each Member Association has a leadership role in the International Planned Parenthood Act a volunteer Board of Directors (elected 1977 meet the charitable purposes by the membership of the Association) provision of services as outlined in the Charities Act and sends one or more as a delegate and commodities. 2006. Specifically, IPPF is engaged to Regional Council depending on with purposes in relation to the membership category. ‘advancement of health or the saving of lives’ and the ‘advancement of The Governing Council meets human rights’. twice per year, for three days. This Council has two sub-committees; the As discussed on page 8, IPPF has set Membership Committee and the Audit out its mission to improve sexual and Committee which meet twice per year reproductive health and rights for for one day at a time. millions of women, men and young people around the world in its Strategic Following the election of a new Framework. The Strategic Framework Governing Council, members receive demonstrates that IPPF is engaged in a comprehensive induction pack activities which have general public outlining their responsibilities as benefit in the 164 countries in which UK charity trustees. In addition, an IPPF currently works with our Member interactive session is held where Associations. IPPF works through members are provided with materials one organization in each of these in relation to strategy, policies and countries. Member Associations do finances as well as practical elements not pay any fee to become or maintain concerning the role distinctions their membership of IPPF. Through between volunteers and staff. monitoring global indicators IPPF assesses its ability to meet the needs of the poor, marginalized, socially- excluded and/or under-served groups, ensuring that those in poverty have the opportunity to benefit from the services IPPF provides. 6 IPPF Financial Statements 2010 Through monitoring The responsibilities of the The Governing Council’s members are Governing Council responsible for the maintenance and our global indicators integrity of the financial and other Under charity law, the members of information included on the IPPF we are able to assess Governing Council are responsible for website. Legislation in the UK the ability to meet preparing the Trustee Report and the governing the preparation and financial statements for each financial dissemination of financial statements the needs of the year which show a true and fair view may differ from legislation in other poor, marginalized, of IPPF and the results for that period.