THE SOURCE 2022 - Annual Review - Wetlands International

TOTAL INCOME NETWORK AND GLOBAL OFFICE (FOUNDATION) 35

SUMMARY OF FINANCE AND RESOURCING

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This section provides a summary of Wetlands International’s finance and resourcing in 2022. A detailed version can be found in sections 1 and 2 (annual accounts) and section 3 of the Annex.

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Wetlands International focuses its work where wetlands matter most to people and nature. Our programmes and initiatives are developed to meet our goals set out in our Strategic Intent 2020-2030 and organised into three streams: Coasts and Deltas, Rivers and Lakes, and Peatlands (see section 3.1 of the Annex for a complete list of our projects). Our programmes are increasingly large-scale and long-term, involving transboundary and international work that involves several offices. The network’s offices (global and sub-regional, national) work together on resource development and an increasing amount of funding is raised by offices other than the global office. Resourcing the global organisation The main sources of income of Wetlands International for 2022 came from projects as well as important annual contributions from our members. The total network project income is based on data obtained from all offices according

to their national finance practices. The total network project income of 2022 amounted to €18 million (see Annex section 3.1). Our sources of income and expenditures across the sectors The main source of income in 2022 was from foundations, trusts and other non-profits at 50% (last year 40%). This increase came from a shift from government grants, representing a lower part of the total income of 43% this year (last year 51%). In addition, 5% (last year 6%) came from corporate funding (through our Collaboration Agreements). Membership contributions remained at 2% of the total income but are important strategically, as they enable action on waterbird monitoring and support strategic investments.

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2020 2021 2022 BUDGET 2023

PROJECT INCOME GLOBAL OFFICE

PROJECT INCOME NETWORK

implemented in 2022 per office and includes the stream, the amount funded, the donor and the donor type.

capacity at Global Office level is focused primarily on new business acquisition, as well as building capacity for fundraising in our offices. It also requires we shift from a culture of fundraising to one of philanthropy. Our strategy to achieve this target will involve establishing systems to build strong relationships and support donors’ connection to our work by: • Investing in developing a coherent organisational level case for support and underlying donor engagement assets. This would help us promote our organisation as a whole and therefore have better control on our donor engagement rather than our current practices of selling projects. • Developing comprehensive organisational level engagement strategies for our four main fundraising markets - corporate engagement, private foundations and high net worth individuals; Government Membership and public donors. This would allow us to build our network level resource mobilisation capacity that is less about spotting an opportunity and writing proposal to that which is derived from our own strategy and that support us as an international network. • Investing in Customer Relationship Management to improve our donor relationship management, particularly in improving the current donor lifetime value. We continue to improve the financial resilience of the Wetlands International network, including strengthening our financial reserves to enable us to address unforeseen external events and to invest in the organisation.

Our sources of income and expenditures across the three streams Across our three streams, Coasts and Deltas accounted for the largest portion of our income at 49% (last year 50%), Rivers and Lakes increased to 43% because of the starting of two larger programs (last year 38%) and Peatlands contributed 8% (last year 12%) of total network income; this decline is mainly due to one large programme ending. Resource development and implementation by network offices In 2022, network offices received and managed 28% of total income directly from our donors. This is slightly lower than in 2021 (35%), mainly due to the taking of larger programs with conditional funding through the Global office. Projects managed through the global office are mostly implemented by our network offices or by affiliated scientific institutions, partners and experts using sub-contracts. Considerations looking ahead We received significant one-off grants in 2022 from individuals via philanthropic fundraising platforms. In 2023, we have planned to increase this part of our annual income by €800k in new flexible funding donations built from a mix of private sources. Our aim is that by the end of 2025, organisational development, communications and advocacy costs will be financed 100% from flexible funds. We aim for 30% flexible funding of the total annual income. This target assumes that we invest in the operational fundraising foundations required, and that partnership development

A full list of network projects can be found in section 3.1 of the Annex. This list provides an overview of projects

GLOBAL NETWORK BY STREAM

GLOBAL NETWORK INCOME BY DONOR

8%

49%

43%

50%

43%

49% COAST & DELTA

5% CORPORATE

43% RIVERS & LAKES

43% GOVERNMENT INSTITUTION

8% PEATLANDS

50% TRUST, FOUNDATIONS & NON-PROFIT

2% MEMBERSHIP

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Wetlands International Annual Review 2022

Wetlands International Annual Review 2022

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