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Where the money was spent

Our total expenditure of $448.1 million for Humanitarian Services increased 19% from last year, in line with increases in revenue. We spent $364.4 million delivering our programs supporting vulnerable people in Australia and further afield. This means that 81 cents in every dollar spent went to delivering services and programs to vulnerable people (up from 75% last year).

Fundraising costs amounted to $15.9 million, representing 4% of total expenditure. Fundraising costs are those costs associated with fundraising income, administering emergency appeals and soliciting non-cash gifts that, in accordance with organisational policy are not recognised in the accounts. Our cost of fundraising was 17% overall and 21% (excluding Emergency Appeals), improving from 2012 due to ongoing efficiency gains and investment in cheaper funding channels.

Our administration costs, which include costs critical to the daily running of the organisation, accounting for funds and meeting external regulatory requirements have declined from $22.7 million in 2012 to $21.8 million in 2013. Our cost of administration was 4% of total expenditure, improving from 2012. We are also continuously looking at ways to improve our cost effectiveness and are investing in IT infrastructure to improve efficiencies.

Our work in Australia and overseas

In 2013, we invested $364.4 million in delivery of Red Cross humanitarian programs and disaster appeals. Disaster and emergency expenditure fluctuates from year to year according to need and in 2013, most of our disaster and emergency work was carried out supporting the Queensland Floods and Tasmanian Bushfires. We spent $349.7 million on our everyday work to address disadvantage across Australia and overseas, which makes up 96% of our total program expenditure. Domestic expenditure as a whole grew to $330 million in 2013 (up from $224.3 million), representing 91% of our program expenditure and reflecting the needs of the domestic community.

Program spend

Our program spend increased from last year in direct response to community need and increases in funding from the government. Each funding opportunity is assessed through our internal review processes to determine whether programs are aligned with community needs, have undergone thorough risk assessments and align with Red Cross Fundamental Principles, strategic direction and established Ways of Working.

Our program activities within Humanitarian Services are defined according to our priority areas and all new programs must establish a link to our priority areas to be considered for funding.

This year our work in migration continued to expand with the support of government, principally to help people seeking asylum and moving from detention facilities into the community. The Social Inclusion priority area also increased as a result of increased government grants.