Financing by means of Contributions and Donations

17.02.2010

In order to guarantee absolute independence, foodwatch declines government funding and is financed solely by means of contributions and donations. foodwatch is a non-profit association.

foodwatch wants to secure that its work is influenced by nothing but consumer interest. Therefore foodwatch principally declines any funding from the government. Funding from corporations is also not accepted in order to avoid any conflict of interest that may arise or to prevent its work from being influenced. Major donators are named on the foodwatch internet site.

Income in 2008

In 2008, thanks to the support of nearly 14,000 members, and just in the seventh year since its foundation, foodwatch was able to invest a budget of 1,286,118 Euros in its work. 80% of the total income, equivalent to 1,022,688 Euros, were made up from contributions and small donations. foodwatch received funding of more than 5,000 Euros from (in alphabetical order) Thilo Bode, BTV Beteiligungstreuhand GmbH, Easy FDL GmbH, Gerling Stiftung, Gregor Louisoder Umweltstiftung, Clemens Haindl, der Karl-Lindner-Education-Foundation, Mahle-Stiftung, Alfred Ritter, Alexander Szlovak and Falk F. Strascheg. In 2008 the income resulting from major contributions and foundations amounted altogether to 227,420 Euros (18% of its total income). The remaining three per cent, defined as other income, compose of for example interest on its capital as well as payments for travel expenses for lectures and media appearances.

Expenditure  in 2008

Campaigns

The basic contents of the work of foodwatch are determined by its campaigns department. Those responsible for the campaigns identify potential problems as well as researching their effects, ordering scientific studies and laboratory tests and developing campaign strategies. A major part of their work to inform and mobilise customers, for example by organising protests. In 2008 alone, foodwatch made the public aware of uranium concentrations above the legal limit found in drinking water, revealed the illegal export of animal meal, and published a study on the effects of agriculture on the climate. foodwatch also actively campaigned for the food industry to provide consumers with information on the nutritional value of food using a 'traffic light' coloured label. Last but not least, its abgespeist.de campaign regularly unmasked the lies used in food industry advertising. Campaign expenditure including informational work amounted to 415,450 Euros, corresponding to 37 per cent of annual expenses.

Public Relations

‘A small staff of uncompromising public relations professionals’ is what the magazine Spiegel calls foodwatch. The weekly newspaper Die Zeit wrote: ‘Organizations like foodwatch (...) convince with their reliable information and reveal scandals over and over again.’ foodwatch has made the public representation of consumer interest its own business. This would be impossible without a professional public relations department. The public and media pressure are vital in order to secure that politicians take action on the consumers’ behalf. Active public relations and regularly updated internet sites, as well as online campaigning are therefore an essential part of its work. In 2008 foodwatch spent 168,062 Euros on this item, equalling 15 per cent of total expenses.

Supporter Service and General Service

A lot of information generates a lot of questions. To respond to questions and suggestions of its prospective and actual members foodwatch offers an information and supporter hotline as well as nutritional consultation. In 2008 foodwatch invested 156,174 Euros in this service, which added to 14 per cent of total expenses.

Acquisition of New Members and Donators

It is essential for any member organization to do marketing, particularly in order to acquire new members. Especially if these organizations – such as foodwatch – want to maintain their independence and avoid funding from government. The fact is, new members do not come by themselves. Studies prove that only about ten per cent join spontaneously. The remaining 90 per cent must be encouraged. For marketing purposes foodwatch uses mainly telephone marketing and contact by mail or internet. This way foodwatch informs those potentially interested and attempts to attract them as members. In 2008 foodwatch spent 215,798 Euros (19 per cent) on the acquisition of new members and donators. This expenditure is an investment for the future: with their regular donations, members secure the financial basis of its work. And last but not least: they give importance to the public voice of foodwatch.

Administration

Like anywhere else nothing works without a well equipped office and strong administrative team. The management of members, accounting and assistance as well as office accommodation provide a solid foundation for its work and cost 181,230 Euros, that is 16 per cent of its total expenditure.

foodwatch has its annual financial statement voluntarily audited every year by an independent accountant. The financial statement for 2008 has been audited by the accountants Quabeck & Partner and is presented with an unqualified audit report.

 

Weitere Informationen zum Thema

• Foundation in 2002 as ‘Start-up-NGO’
  foodwatch was founded in 2002 as a non-profit association and the start was made possible by longterm loans and donations.

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