fundrasing and marketing. The impact of marketing to fundraising mission of an organization. The focus of CRM literature has been primarily on three areas: creating and managing successful CRM alliances, consumer perceptions of businesses and NPOs engaged in the alliances, and consumer behavior in response to CRM campaigns. Most of the research has focused on the West, with very little published data on CRM initiatives in Asia and other parts of the world. Each of these topics, as well as the limitations of the literature, are discussed in this chapter.
Master Thesis Master's Programme in Strategic Entrepreneurship for International Growth with specialization in International Case studies of Swedish Non-Profit Organization’s (NPO) fundraising process -Adaptation of Balanced Scorecard Business Model for fundraising success Independent Project in Business Administration, 30 credits Halmstad 2020-05-31 Maitrayee Roy HALMSTAD UNIVERSITY Halmstad University School of Business and Engineering Master's Programme in Strategic Entrepreneurship for International Growth with specialization in International Marketing TITLE OF DISSERTATION Master Thesis on Case studies of Swedish Non-Profit Organization’s (NPO) fundraising process - Adaptation of Balanced Scorecard Business Model for fundraising success Independent Project in Business Administration, 30 credits Final Seminar Date: May 26, 2020 Author: Name: Maitrayee Roy Supervisor: Professor Klaus Solberg Söilen Examiner: Professor Ulf Aagerup Acknowledgements The author would like to express their deepest appreciation to the supervisor professor Klaus Solberg Söilen for his valuable guidance and encouragement towards the completion of thesis paper The author would also like to show her gratitude to Navid Ghannad, Susanne Durst, Hélène Laurell, Venilton Reinert, Svante Andersson, professors of Halmstad University throughout two years’ Master programme Finally, special thanks are given to parents and friends for their enormous support and inspiration Halmstad, May 2020 Maitrayee Roy Title: Case studies of Swedish Non-Profit Organization’s (NPO) fundraising process - Adaptation of Balanced Scorecard Business Model for fundraising success Abstract The purpose of this study to review of Business Model elements of Non-Profit Organization (NPO) to discuss non-profit marketing activities and fundraising performance indicators that contribute fundraising success To prepare this paper, two Swedish non-profit organizations i.e Sverige för UNHCR and Svenska Röda Korset has been chosen as the sampling organization This paper is descriptive study, qualitative approach and case study method Data is mainly collected from the annual reports and their official Websites The literature review covers Business model elements concept by Drakulevski & Nakov (2014); The Business Model Canvas (BMC) by Osterwalder and Pigneur (2010); Building Block of Business Model by Osterwalder, A (2004); Niven’s Modified Balanced Scorecard model for non-profit organizations by Kwokwah Yeung & Connell (2006); and the theoretical model of the relationship between marketing activities and the fundraising performance by Cacija, L (2014) The main findings of the paper are as follows: • • • • • Proposed Fundraising Framework Nonprofit Marketing mix analysis SWOT analysis Nonprofit Marketing Implementation Financial performance by ratio analysis The theoretical contribution of this paper is to show the interactions among different business model elements adapting with Balanced Scorecard model elements as success factors leads to marketing activities and fundraising key performance indicators of NPO The practical contribution of this paper is to show key performance indicators measurement by ratio analysis that will be useful to managers, board members for their better strategic marketing decisions Lastly, an empirical verification of the proposed fundraising framework is recommended to analyze in other non-profit organizations in another countries and cultures for future research Keywords- Fundraising, Non-profit organization, Business Model Elements, Balanced Scorecard Model, Non-profit Marketing Table of Contents Introduction 1.1 Background 1.2 Problems identification and discussion Literature review 2.1 Business Model elements of the Non-profit organization 2.2 Balanced Scorecard Model of Non-profit organization 2.3 Balanced Scorecard Business Model: Essential Success Factors as interfaces and interactions of Business Model elements used in NPOs management practice 2.4 Marketing activities of non-profit organizations 10 2.6 Fundraising success of nonprofit organization 12 2.8 Proposed Framework 14 Methodology 16 3.1 Research Philosophy 16 3.2 Research Purpose 16 3.3 Research Methods 17 3.4 Choice of Research Methods 17 3.5 Data collection Methods 17 3.6 Case Analysis 18 3.7 Data Analysis 18 3.8 Time Horizon 19 3.9 Extent to research interference 19 3.10 Ethical Issues 19 3.11 Validity 20 3.12 Reliability 20 Case Study 21 4.1 About Sverige för UNHCR 21 4.1.1 Human Resource Management of Sverige för UNHCR 21 4.1.2 Sources of Fundraising of Sverige för UNHCR 22 4.1.3 Contributions in marketing area of Sverige för UNHCR 23 4.1.4 Donor’s contributions to UNHCR: Sverige för UNHCR 24 4.1.5 Financial scenario: Sverige för UNHCR 24 4.1.6 Future of Sverige för UNHCR 25 4.2 About Svenska Röda Korset 25 4.2.1 Human Resource Management of Svenska Röda Korset 26 4.2.2 Sources of Fundraising of Svenska Röda Korset 26 4.2.3 Contributions in marketing area of Svenska Röda Korset 27 4.2.4 Donor’s contributions to IFRC and ICRC: Svenska Röda Korset 28 4.2.5 Financial scenario: Svenska Röda Korset 29 4.2.6 Future of Svenska Röda Korset 29 Case Analysis 30 5.1 RQ1: The essential success factors in the context of business models used in NPOs management practice 30 5.1.1 Balanced Scorecard Business Model: Sverige för UNHCR 30 5.1.2 Balanced Scorecard Business Model: Svenska Röda Korset 33 5.2 RQ2: The non-profit marketing activities in fundraising carried out by NPO 36 5.2.1 Non-profit Marketing Mix analysis of Sverige för UNHCR 36 5.2.2 Non-profit Marketing Mix analysis of Svenska Röda Korset 37 5.2.3 Non-profit Marketing Planning of Sverige för UNHCR 38 5.2.4 Non-profit Marketing Planning of Svenska Röda Korset 42 5.2.5 Non-profit Marketing Implementation of Sverige för UNHCR 45 5.2.6 Non-profit Marketing Implementation of Svenska Röda Korset 47 5.3 RQ3: The fundraising performance indicators contribute to the improvement of nonprofit strategic marketing 49 5.3.1 Key performance indicators by Financial Ratio Analysis of Sverige för UNHCR 49 5.3.2 Key performance indicators by Financial Ratio Analysis of Svenska Röda Korset 50 5.3.3 Charts of Key Performance Indicators of Sverige för UNHCR 51 5.3.4 Charts of Key Performance Indicators of Svenska Röda Korset 55 Discussion and Conclusions 59 Future Research 60 Limitations 61 List of Tables Table 1: Business Model Elements by various authors Table 2: The four business model pillars Table 3: Key performance indicators by Financial Ratios of the Nonprofit Sector 12 Table 4: Human Resource Management scenario of Sverige för UNHCR 22 Table 5: Donor’s contributions to UNHCR 24 Table 6: Human Resource Management scenario of Svenska Röda Korset 26 Table 7: Donor’s contributions to IFRC and ICRC 28 Table 8: Key Performance indicators by Ratio analysis of Sverige för UNHCR 49 Table 9: Key Performance indicators by Ratio analysis of Svenska Röda Korset 50 List of Figures Figure 1: Balanced Scorecard performance system Figure 2: Niven’s Modified Balanced Scorecard Figure 3: Theoretical model of a relationship between marketing activities and the fundraising performance 11 Figure 4: Framework for the analysis (authors’ elaboration) 15 Figure 5: SWOT Analysis of Sverige för UNHCR 42 Figure 6: SWOT Analysis of Svenska Röda Korset 45 List of Charts Chart 1: Sources of fundraising vs amount of fundraising of Sverige för UNHCR (in SEK) (Year 2014-2018) 23 Chart 2: Sources of fundraising vs amount of fundraising of Svenska Röda Korset (in SEK) (Year 2014-2018) 27 Chart 3: Days cash on hand in Liquidity ratios- Sverige för UNHCR 51 Chart 4: Months of Spending in Liquidity ratios- Sverige för UNHCR 51 Chart 5: Savings Indicator Trendline in Operating ratios- Sverige för UNHCR 52 Chart 6: Contributions and Grants Trendline in Operating ratios- Sverige för UNHCR 52 Chart 7:Fundraising Efficiency Trendline in Operating ratios- Sverige för UNHCR 53 Chart 8: Program Service Trendline in Spending Ratios- Sverige för UNHCR 53 Chart 9: Management and General Trendline in Spending Ratios- Sverige för UNHCR 54 Chart 10: Fundraising Expense Trendline in Spending Ratios- Sverige för UNHCR 54 Chart 11: Days cash on hand in Liquidity ratios- Svenska Röda Korset 55 Chart 12: Months of Spending in Liquidity ratios- Svenska Röda Korset 55 Chart 13: Savings Indicator Trendline in Operating ratios- Svenska Röda Korset 56 Chart 14: Contributions and Grants Trendline in Operating ratios- Svenska Röda Korset 56 Chart 15: Fundraising Efficiency Trendline in Operating ratios- Svenska Röda Korset 57 Chart 16: Program Service Trendline in Spending Ratios- Svenska Röda Korset 57 Chart 17: Management and General Trendline in Spending Ratios- Svenska Röda Korset 58 Chart 18: Fundraising Expense Trendline in Spending Ratios- Svenska Röda Korset 58 List of Annexures Annexure 1:Summary of Proposed Fundraising Framework 68 Annexure 2: Income Statement of Sverige för UNHCR 78 Annexure 3: Balance Statement of Sverige för UNHCR 79 Annexure 4: Income Statement of Svenska Röda Korset 80 Annexure 5: Balance Statement of Svenska Röda Korset 81 Abbreviations BMC BME BSC BSBM FRII ICRC IFRC KPIs Mkr NPO SEK SIDA UNHCR WWII Business Model Canvas Business Model Elements Balanced Scorecard Balanced Scorecard Business Model The Agency for Volunteer Fundraising Organizations The International Red Cross and Red Crescent Movement The International Federation of Red Cross and Red Crescent Societies Key Performance Indicators Million Kronor Non-Profit Organizations Swedish Krona Swedish International Development Cooperation Agency United Nations High Commissioner for Refugees World War II Introduction This chapter presents the background of the relevance, originality and currency of the research questions based on prior literatures and articles to demonstrate the knowledge gaps i.e the purpose of the thesis paper 1.1 Background The concept of Fundraising defines the activities of raising money with following up people or organizations with the purpose of supporting an aid on contributions of charity i.e education, health, shelter, microfinance, rights of refugees, etc and providing with life-saving relief and creating solutions for a secured future According to Hommerová & Severová (2019, p 181) “Fundraising can be viewed as a systematic activity aimed primarily at raising financial resources for the activities of either an organization or an individual From another point of view, fundraising can be viewed as a science that deals with the motivation to good and the conviction of people that money is not everything.” Jungbok, H (2015, p 2) states “Fund-raising is one of the most important business tasks for nonprofit organizations in order to operate the organization Among other things, segmenting the donor market is considered core marketing application area for fund raising- task Several studies are found in the areas such as identifying the donor behaviors compared to that of non-donors, segmenting the donor market etc.” In recent, the number of non-profit organizations (NPOs) increases at Sweden every year resulting in difficulties to raise the fund for functioning the charity activities in the long run The purpose of this study to review Business Model elements of Non-Profit Organizations (NPO) to discuss Swedish NPO’s non-profit marketing activities and fundraising performance indicators that contribute to fundraising success The sources of fundraising of NPOs are important to understand the business model of NPOs, how it works in marketing area and contribute in NPO’s financial performance Though there is no classification of fundraising sources in NPOs Hommerová & Severová (2019) states that categorization of sources of funding of non-profit organizations is divided into three parts (i) Public funding (i.e domestic sources (state administration, local authorities) and foreign sources (European Union; (ii) Nonpublic funding (foundations, corporate donations); and (iii) Donations from individuals (Income from the NGO’s own activities, the organization’s own activities, membership fees, income from lotteries and games of chance, advertising and public collections Cacija and Najev (2013, pg-61) state “sources of funding can generally be divided into four main sources: donations of individual donors, donations of profit entities, for-profit and non-profit foundations; income generated by own activities and income from the partnership with the private sector.” C Batti (2014) found out two categories for sourcing of funds or resources (i) Conventional Individual philanthropy, Private foundations, corporate agencies, government and foreign development agencies; and (ii) Non-Conventional Means Membership fees, businesses, income-generating activities, Prizes/Awards In Sweden, Swedish Collection Control (Svensk Insamlings Kontroll) is a nonprofit association check on NPOs with 90 accounts on an annual basis, ensures standards of the collection and grants of public fundraising of NPOs They also ensure public fundraising satisfactory with reasonable costs, appropriate marketing activities used in fundraising ("Om Svensk Insamlingskontroll | Svensk insamlingskontroll", 2020) There are four hundred thirty-three (433) active Non-profit organizations under Swedish Collection Control in Sweden Among them, some of the largest non-profit organization are Cancerfonden, UNICEF, Läkare Utan Gränser, UNHCR, Svenska Röda Korset and many others ("90-konton | Svensk insamlingskontroll", 2020) 1.2 Problems identification and discussion During for few decades, many researchers have provided theories on the corporateNPO collaborations There are no theoretical fundraising models that is considered one of the major activities of non-profit organizations Besides, from the earlier research articles, it has not researched on the interfaces and the interaction between the different business model elements As Wirtz, B (2016, p 51) mentions “There is another area of research that has so far been neglected concerns actors & interactions in the context of business models.” Relating to the subject matter, this paper will discuss about interactions between Business Model elements of NPOs as fundraising success factors Cacija and Najev (2013, p 73) mentions “The problem with a lack of theoretical fundraising models and their adjustment with the known marketing theories prove the need for future researches which would explain the impact of marketing activities on fundraising success.” Another author Jungbok, H (2015, p 5) states “Among many other future research opportunities in nonprofit marketing strategies, the research for multinational charities can be the feasible research subject What kind of marketing strategies nationally operated charities such as Red Cross or Organizations under United Nations (UNICEF etc.) use and how they apply those same strategies to the different countries? Another possible research could be what the elements to success in business venture are In other words, when nonprofit organizations increase its income through profit making business venture, what is the key for the success of this venture.” Based on the prior research investigation and problem identification, the following research questions can be discussed for understanding NPO’s non-profit marketing activities and fundraising performance indicators for the overall fundraising process: RQ1 What are the essential success factors in the context of business models used in NPOs management practice? RQ2 What are the non-profit marketing activities in fundraising carried out by NPO? RQ3 What are the fundraising performance indicators contribute to the improvement of nonprofit strategic marketing? people’s protection such as children or women UNHCR builds future for people by providing education, health care, education and training supply 2 BME 1: Target Customer BME2: Customer handling/distribution channel BME3: Customer interfaces/relationshi p BME 4: Value proposition BME5: Cost structure BME6: Revenue Model BSBM2: Customer BSBM3: Financial is aimed at clarifying the various ways of goals to increase revenue The volunteer strategy is aimed at creating frameworks for operating and developing volunteer and humanitarian activities The advocacy strategy is aimed to achieving an impact in advocacy work precisely with clarity and assisting direction -In 2018, total 132,900 private -In 2018, there are 115,441 individuals in Sweden donated money private individuals in Sweden The number of total active members donated money to Svenska Röda reaches at 73,000 to Sverige för Korset’s humanitarian work The UNHCR’s monthly donors number of total active members reaches at 94,453 to Svenska Röda Korset’s monthly donors -The revenue of Sverige för UNHCR SEK 284 million (Mkr) in 2018 SEK 341 million (Mkr) in 2017 SEK 501 million (Mkr) in 2016 SEK 518 million (Mkr) in 2015 SEK 265 million (Mkr) in 2014 -The operating expenses of Sverige för UNHCR SEK 284 million (Mkr) in 2018 SEK 342 million (Mkr) in 2017 SEK 501 million (Mkr) in 2016 -The revenue of Svenska Röda Korset SEK 696 million (Mkr) in 2018 SEK 686 million (Mkr) in 2017 SEK 651 million (Mkr) in 2016 SEK 696 million (Mkr) in 2015 SEK 540 million (Mkr) in 2014 -The operating expenses of Svenska Röda Korset SEK 768 million (Mkr) in 2018 SEK 724 million (Mkr) in 2017 69 BME 7: Capability/core competency BSBM4: Employee learning & growth BME8: Partner network BSBM5: Internal process Task Non-profit Marketing Mix analysis by Kotler, 1994 SEK 511 million (Mkr) in 2015 SEK 259 million (Mkr) in 2014 SEK 735 million (Mkr) in 2016 SEK 713 million (Mkr) in 2015 SEK 644 million (Mkr) in 2014 -Sverige för UNHCR works on human resource management policies such as contractual arrangements, promotions, postings, recognition and reward schemes, human resource planning -Svenska Röda Korset works on three main human resource management policies such as leadership, security and diversity Svenska Röda Korset has proficiency in the field of gender and diversity and provides training to their employees in other countries on how to integrate into disaster operations -The internal process of Svenska Röda Korset follows five components of the COSO model -Conduct fundraising as per collection policy Follow a prescribed company rule for larger gifts and partnerships with companies RQ2: Task1: Non-profit Marketing activities by Theoretical model by Cacija, L (2014) Sverige för UNHCR Svenska Röda Korset Product -In 2019, Sverige för UNHCR gives -In 2019, Svenska Röda Korset their grant of SEK 1406 million gives their grant of SEK 204 (Mkr) to UNHCR In 2018, their million (Mkr) to IFRC The contribution was SEK 1413 million earlier two years, their (Mkr), ranked fourth position as a contributions to IFRC was SEK grant donor to UNHCR 236 million (Mkr) in 2018 and -At the earlier year in 2017, Sverige SEK 116 million (Mkr) in 2017 för UNHCR contributed grant of SEK Svenska Röda Korset also 1104 million (Mkr) to UNHCR contributes their donation to 70 Sverige för UNHCR contributed grant of SEK 1104 million (Mkr) to UNHCR -Sverige för UNHCR provided their services on Syrian crisis, the Iraq crisis, the Myanmar crisis, the Yemen crisis and all refugee crises in Africa Price -The specific costs of Sverige för UNHCR’s is SEK 237 million (Mkr); fundraising cost SEK is 34 million (Mkr) and administration expenses is SEK 14 million (Mkr) The operating costs for Sverige för UNHCR is SEK 284.35 million (Mkr) The operating incomes tends to SEK 0.02 million (Mkr) ICRC In 2019, the contribution of Svenska Röda Korset was SEK 752 million (Mkr) as a grant donor to ICRC In 2018, Svenska Röda Korset contributed grant of SEK 675 million (Mkr) to ICRC In 2017, they gave donation amount of SEK 747 million (Mkr) Svenska Röda Korset provided their services on Syrian crisis, the Bangladesh crisis, the Myanmar crisis and other crisis around the world -In 2018, the operating revenue of Svenska Röda Korset is SEK 696 million (Mkr) The operating expenses include specific costs, fundraising costs, and administrative expenses The specific costs of Svenska Röda Korset is SEK 628 million (Mkr); fundraising cost SEK is 95 million (Mkr); administration expenses are SEK 44 million (Mkr) The operating costs for Svenska Röda Korset is SEK 768.35 million (Mkr) The operating incomes tends to SEK 0.07 million (Mkr) 71 Non-profit Marketing Planning: SWOT Analysis Place -In 2018, Sverige för UNHCR made largest non-earmarked grant of SEK 820 million (Mkr) and in 2017, Sverige för UNHCR donated 700 million (Mkr) was a non-earmarked core grant that made Sverige för UNHCR They have six national fundraising partners to mobilize their resources, contribute significant funding to their operations Promotion -Sverige för UNHCR’s Promotion strategy consists with mainly on utilize digital platform, resource mobilization, NGO-corporate partnerships and other organizations, strengthen public engagement and global partnership expansion Strengths -Reputation in marketplace -Organization Structure -Research and Development -Brand name -Service differentiation -In 2018, they donated SEK 44.86 million (Mkr) and in 2017, they donated SEK 37.56 million (Mkr) for their global operations and overarching international projects They distributed their services in the regions of Middle East and North Africa, Asia, East and Southern Africa, West and Central Africa, Europe and Latin America Svenska Röda Korset’s Promotion strategy consists with mainly on donor’s retention and new donor’s recruitment through campaigns, mailings and the maintenance of donor records through Telemarketing, Face-toFace (F2F), TV and radio commercials, printed matter, postage, advertising, information materials, fundraising materials, brand building, profiling -Reputation in marketplace -Organization Structure -Research and Development -Brand name 72 -Adequate Govt funding -Good Governance Weaknesses Opportunities Threats Non-profit Marketing Implementation -Decrease the fundraising performance -Inadequate Govt funding -Limited placement services -Supportive external and relevant policies/laws -Support from donor agencies and other sector organizations -Competition -Anti-NGO approaches by media and advocacy organizations -Decline the flexible income Digital Fundraising by Blery, E., Katseli, E., & Tsara, N (2010), Yoo, S., & Drumwright, M (2018), Sargeant, A., & Shang, J (2017), Hart, T (2005), and Smith, C (1999) -Sverige för UNHCR, as a part of UNHCR put investments in digital advertising and experienced new digital engagement techniques e.g online video advertisements, leadgeneration advertising and target segmentation to engage new donors for the refugee cause Social Media by Barbara Čater, & Patricia Fux (2018), D Verciˇ cˇ et al (2015), N.M Lee et al - Sverige för UNHCR “@SverigeforUNHCR” Twitter account has 2600 followers, and its Facebook page -Limited placement services -Ethical issues -Stable Sustainability policy -Companies and philanthropists -Innovation -Substantial risks and uncertainty factors -The changing role of the government -Svenska Röda Korset also enhance their accessibility by a two-way communication among management and employees, the board members, Red Cross Volunteers with respective donors Live web TV via Svenska Röda Korset’s intranet (Rednet) plays a vital role in digital communication Svenska Röda Korset’s Twitter account (twitter.com/rodakorset) has 14,744 followers, and its Facebook page 73 (2015), and Dolnicar, S., & Lazarevski, K (2009) Task Liquidity ratios (www.facebook.com/sverigeforunhcr ) has 76,685 page “likes” Sverige för UNHCR has also presence on Instagram, Flickr and YouTube On YouTube, they have 1.53K subscribers and on Instagram, they have 19.6K followers (www.facebook.com/rodakorset/ ) has 174,664 people like this page “likes” Svenska Röda Korset has also presence on Instagram, Flickr and YouTube On YouTube, they have 1.22K subscribers and on Instagram, they have 15.9K followers Event Fundraising by -The positive attribute of this event -Most of the event fundraising Webber, D (2004); fundraising is people remember the marketing activities of Svenska Inoue (2015); Sargeant, events based on the successful Röda Korset towards A., & Shang, J (2017) completion, the message is properly relationship‐building happens delivered serving as a long-term through Tele-marketing, TV and relationship with donors radio commercials, printed matter, postage, advertising, information materials, fundraising materials, brand building RQ3: Task 2: Fundraising performance indicators Ratio analysis by Cashwell, K., Copley, P., & Dugan, M (2019) Sverige för UNHCR Svenska Röda Korset Days cash on hand -Sverige för UNHCR had 21 days -Svenska Röda Korset had 25 cash on hand in Year 2014, 122 days days cash on hand in Year 2014, in Year 2015, 58 days cash on hand in 88 days in Year 2015, 19 days Year 2016, 64 days in Year 2017 and cash on hand in Year 2016, 48 68 days in Year 2018 shows the days in Year 2017 and days in positive indication of incremental Year 2018 The trendline shows days cash on hand from Year 2014 to the declining indication of 2018 74 incremental days cash on hand from Year 2014 to 2018 Operating Ratios Months of spending -Sverige för UNHCR had months of spending in Year 2014, months in Year 2015, months in Year 2016, months in Year 2017 and months in Year 2018 showing no change in months of spending ratio of Sverige för UNHCR to cover expenditure from Year 2014 to 2018 Savings indicator -Sverige för UNHCR had 0.99% as savings indicator in Year 2014, 0.99% in Year 2015, 0.98% in Year 2016, 0.96% in Year 2017 and 0.95% in Year 2018 shows the decrease position trendline of Sverige för UNHCR to use its net assets from Year 2014 to 2018 -Svenska Röda Korset had 19 months of spending in Year 2014, 18 months in Year 2015, 17 months in Year 2016, 17 months in Year 2017 and 16 months in Year 2018 Therefore, there is declining months of spending ratio of Svenska Röda Korset to cover expenditure from Year 2014 to 2018 -Svenska Röda Korset had 0.16% as savings indicator in Year 2014, 0.02% in Year 2015, 0.11% in Year 2016, 0.05% in Year 2017 and 0.09% in Year 2018 The savings ratio chart shows that the decrease position trendline of Svenska Röda Korset to use its net assets from Year 2014 to 2018 75 Spending ratios Contributions and grants -Sverige för UNHCR had 7.34% as Contribution and grants in Year 2014, 5.05% in Year 2015, 6.69% in Year 2016, 11.28% in Year 2017 and 8.59% in Year 2018 shows an incremental position from organization’s/ donor’s/ corporates support on Sverige för UNHCR from Year 2014 to 2018 Fundraising efficiency -Sverige för UNHCR had 173.91% as fundraising efficiency in Year 2014, 129.15% in Year 2015, 99.68% in Year 2016, 87.81% in Year 2017 and 13.01% in Year 2018 The fundraising efficiency ratio chart show decline from Year 2014 to 2018 Program service -Sverige för UNHCR had 88.71% as program service spending in Year 2014, 92.26% in Year 2015, 88.83% in Year 2016, 83.75% in Year 2017 and 83.35% in Year 2018 shows decline from Year 2014 to 2018 -Svenska Röda Korset had 0.95% as Contribution and grants in Year 2014, 0.96% in Year 2015, 0.95% in Year 2016, 0.95% in Year 2017 and 0.95% in Year 2018 The contribution and grants ratio chart show that there is no change from organization’s/ donor’s/ corporates support on Svenska Röda Korset from Year 2014 to 2018 -Svenska Röda Korset had 31.57% as fundraising efficiency in Year 2014, 24.08% in Year 2015, 25.48% in Year 2016, 26.97% in Year 2017 and 26.66% in Year 2018 The fundraising efficiency ratio chart show decline from Year 2014 to 2018 -Svenska Röda Korset had 82.58% as program service spending in Year 2014, 84.43% in Year 2015, 84.23% in Year 2016, 82.53% in Year 2017 and 81.73% in Year 2018 The fundraising efficiency ratio chart show decline from Year 2014 to 2018 76 Management and General Fundraising expense -Sverige för UNHCR had 8.00% as management spending in Year 2014, 5.22% in Year 2015, 7.69% in Year 2016, 11.05% in Year 2017 and 13.32% in Year 2018 The fundraising efficiency ratio chart show increase from Year 2014 to 2018 -Sverige för UNHCR had 13.05% as fundraising spending in Year 2014, 6.61% in Year 2015, 6.75% in Year 2016, 9.89% in Year 2017 and 11.89% in Year 2018 The fundraising efficiency ratio chart show decrease trend from Year 2014 to 2018 -Svenska Röda Korset had 3.20% as management spending in Year 2014, 5.33% in Year 2015, 4.63% in Year 2016, 5.50% in Year 2017 and 5.82% in Year 2018 The fundraising efficiency ratio chart show increase from Year 2014 to 2018 -Svenska Röda Korset had 13.09% as fundraising spending in Year 2014, 10.24% in Year 2015, 11.14% in Year 2016, 11.97% in Year 2017 and 12.45% in Year 2018 The fundraising efficiency ratio chart show decrease trend from Year 2014 to 2018 77 Annexure 2: Income Statement of Sverige för UNHCR Income statement Sverige för UNHCR 2018 2017 2016 2015 2014 473071887 33918748 506990635 491915641 26177740 518093381 245447209 19440308 264887517 445047815 39842359 16101839 500992013 466697960 35155342 9520515 511373817 229904009 22172753 7074188 259150950 6719564 5736567 0.00 1885 1885 713 618 95 2300 25 2275 545377 5996737 6719469 5738842 545377 5996737 6719469 5738842 Operating revenue Funds collected (i) Contribution (ii) Sum the foundation's revenue (i+ii) 259955225 24414878 284370103 302935809 38502570 341438379 Operating expenses Specific costs Fundraising costs Administrative expenses Total operating costs 236998411 33808520 13539777 284346708 286408246 43931865 11642372 341982483 Operating income 23395 544104 Result from financial investments Other interest income and similar items Interest expenses and similar income items Total income from financial investments 2042 2042 1011 2284 1273 Profit after financial items 21353 Profit for the year 21353 Source: ("Årsredovisning | Sverige för UNHCR", 2020) 5998622 78 Annexure 3: Balance Statement of Sverige för UNHCR Balance Sheet Sverige för UNHCR 31-Dec-2018 31-Dec-2017 31-Dec-2016 31-Dec-2015 31-Dec-2014 16513 16513 19761 19761 ASSETS Fixed assets Tangible fixed assets Inventories Total fixed assets Receivables Other current receivables Prepaid expenses and accrued income Current assets 64 3,394,757 3394821 687131 1,456,579 2143710 776973 2,086,528 2863501 372145 2,810,730 3182875 1148332 138,938,299 140086631 Cash and bank Total current assets Total assets 52704147 56098968 56424145 60342979 62486689 62486689 79254802 82118303 82118303 170303523 173502911 173502911 14808049 154894680 154894680 19643083 -545377 19097706 13646346 5996737 19643083 6926688 6719658 13646346 1187846 5738842 6926688 2583288 38767574 2038121 43388983 62486689 1927106 58978911 1569203 62475220 82118303 1349815 49410812 109095938 159856565 173502911 1244068 6579101 140164584 147987753 154914441 325177 EQUITY AND LIABILITIES Equity Balanced results 19097706 Profit for the year 21353 Total equity 19119059 Current liabilities Accounts payable 1907184 Other current liabilities 33665030 Accrued expenses and prepaid income 1732872 Total current liabilities 37305086 Total equity and liabilities 56424145 Source: ("Årsredovisning | Sverige för UNHCR", 2020) 79 Annexure 4: Income Statement of Svenska Röda Korset Income statement Svenska Röda Korset Operating revenue Membership subscriptions Donations Contributions Net sales Other revenue Total Operating revenue Operating costs Costs relating to a specific purpose Fundraising costs Fundraising and administrative costs Member Total operating costs Operating profit/loss Profit/loss from financial investments Profit/loss from securities and liabilities held as non-current assets Other financial income and expense Total profit/loss from financial investments Net profit of the year Source: ("Ekonomisk redovisning | Röda Korset", 2020) 2018 2017 2016 2015 2014 12,941 304,220 359,087 5,526 14,563 696,337 13,413 329,273 321,684 5,336 17,092 686,798 13,764 294,456 321,432 4,627 17,264 651,543 13757 362891 303625 3944 12384 696,601 14536 247541 267177 2665 9029 540,948 628,487 95,737 44,726 598,278 86,764 39,842 619,204 81,914 34,040 602,811 73,105 38,050 768,950 72,613 724,884 38,086 735,158 83,615 713,966 17,365 532,257 84,339 20,635 7,289 644,520 103,572 103,080 75 103,005 34,219 124 34,343 45,908 245 46,153 67800 111 67,911 107467 97 107,564 30,392 3,743 37,462 50,546 3,992 80 Annexure 5: Balance Statement of Svenska Röda Korset Balance Sheet Svenska Röda Korset 31-Dec-18 Non-current assets Intangible assets Capitalised expenses, business system Property, plant and equipment Buildings and land Equipment Financial assets Shares in group companies Other participants Other investments held as fixed assets Long-term securities Non-current receivables Total non-current assets Current assets Trade goods Goods for resale Trade receivables Other receivales Deferred expenses and accrued income Cash and cash equivalents Total current assets Total assets 31-Dec-17 31-Dec-16 31-Dec-15 31-Dec-14 3343 3343 10473 10473 18055 18055 25522 25522 26394 26394 1866 4220 6086 1916 3231 5147 2013 3989 6002 2065 2437 4502 2117 1089 3206 100 541 1090541 100 775 1002644 100 775 100 775 100 1022 1031199 1032074 1056131 986224 13500 1000599 1030623 952166 13500 966788 996388 1091182 1100611 1003519 1019139 1141 1419 6853 16668 21512 46452 18870 65322 1165933 909 7519 15603 20540 44571 94788 139359 1158498 1002 5419 20639 19671 46731 37523 84254 1140385 987 10639 7981 23122 42729 170346 213075 1243698 2559 15949 23561 43210 44409 87619 1084007 81 31-Dec-18 Equity and liabilities Equity Basic capital Permanent donation funds Funds reserved by donors for specific purpose, national Funds reserved by donors for specific purpose, international funds reserved by donors for specific purpose, disaster Capital brought forward Current liabilities Other debts Trade payables Liabilities regarding received, unused contributions Liabilities regarding decided, unpaid contribution Other liabilities Accrued expenses and deferred income Total equity and liabilities 305066 266803 8280 16277 32245 402809 1031480 42647 34793 1170 5129 50714 134453 1165933 31-Dec-17 31-Dec-16 31-Dec-15 31-Dec-14 305066 266803 8701 17509 31012 371997 1001088 30436 36970 2058 7436 80510 157410 1158498 305066 267802 8273 18662 29860 375168 1004831 25590 55059 1814 12553 40538 135554 1140385 305066 267802 25394 39356 26321 378354 1042293 305066 267802 11926 28308 34369 344196 991667 40998 77903 1693 43886 36925 201405 1243698 156 24261 25064 917 11814 30128 92184 1084007 Source: ("Ekonomisk redovisning | Röda Korset", 2020) 82 Maitrayee Roy, a student of 2-years (2018-2020) Masters program of Strategic Entrepreneurship on International Growth, International Marketing at Halmstad University This thesis paper is a joyful and thoughtful lesson of learning, studying, thinking, and moreover writing PO Box 823, SE-301 18 Halmstad Phone: +35 46 16 71 00 E-mail: registrator@hh.se www.hh.se