The Luxembourg Red Cross’ Board of Directors has endorsed the establishment of a financial governance on May 9, 2008.
General description, objectives, and financial policy
The Luxembourg Red Cross regularly calls on the generosity of the public in order to finance its activities. These range from international support in regions affected by war or natural catastrophes, to the protection of vulnerable people, to the provision of specialised services such as blood transfusion on a national level.
The Red Cross therefore benefits from donations and bequests from private individuals and corporations. Furthermore, in the frame of their multiple activities, it has signed conventions with the state in order to ensure the funding of the services it provides in the different fields. Some of the services provided are free, some are subsidized, and others have a fee.
Numerous volunteers contribute to the financial balance of the organisation, receiving our gratitude in return
Some volunteers are involved in the local sections of the Red Cross (“sections locales de la Croix-Rouge”), and part of their activities include helping us appeal to the generosity of the people. In this way, these volunteers collect a significant part of the donations the Red Cross requires.
In response to the public’s generosity, the Luxembourg Red Cross administers the funds received in the most responsible way and therefore commits itself to providing all information necessary to ensure complete transparency regarding its accounts. The Red Cross makes every effort to ensure optimal use of the funds received, minimizing overhead costs to maximize impact on the ground.
Over time, the Red Cross has accumulated enough wealth to cover a part of the costs and this capital can be considered as a financial cushion. The Luxembourg Red Cross’ wealth is a reserve which must be preserved to face exceptional events such as natural catastrophes or emergency situations resulting from epidemics or man-made disaster.
Governance and finances
Responsibilities are clearly distributed in the processing of transactions and asset management. Together with other non-profit and humanitarian organisations, the Luxembourg Red Cross is a signatory of the Code of Good Conduct of the organisations calling on the generosity of the people.
The executive committee is statutorily responsible for business management. It delegates the daily management to a committee of directors. The treasurer, a member of the executive committee, oversees the preparation of financial statements and is responsible for the implementation of the cash management and legacies. The treasurer delegates the operational component to the finance director.
The financial statements of the Luxembourg Red Cross prepared by the finance director are transparent and give true image of the projects of the past year. The accounts are processed in a way which allows an analytical reading of operations.
The executive committee includes a finance committee which proposes general guidelines, manages asset allocations, offers financial guidance, and monitors the implementation of decisions. The finance committee prepares for the executive committee every major decision which needs to be taken, in particular regarding real estate.
For more information on the financial management of the Luxembourg Red Cross, download the following document (in French or German) :