Terre des hommes takes stabilisation measures
A significant deficit was detected at the time of the closing of the 2018 accounts of the Terre des hommes Foundation (Tdh). Revenues were inaccurately estimated, which implies a refocusing of our activities and a restructuration of the organisation to continue our mission of helping children.
A deficit of CHF 14.5 million was recorded at the time of the closing of our 2018 accounts. This amount is CHF 7.5 million higher than forecast, for a total volume of CHF 113 million. This deficit is not due to embezzlement or misappropriation of funds. It is explained by the implementation of an inadequate budget management system, leading to an error in the estimation of revenue.
Measures to preserve our activities
In order to preserve the core of our activities in the field, we are implementing a major restructuring of our Lausanne headquarters. The plan announced on Tuesday 28 May involves the dismissal of 45 people out of 220, in addition to 12 voluntary departures. All levels of the organisation are affected. This decision will result in a saving of CHF 7.5 million by the end of 2020.
Management is also involved. An Executive Director will be appointed ad interim in the coming weeks and will accompany the transition phase.
Rising childcare needs
The organisation regrets this situation, especially as the needs for child relief continue to grow, particularly in the context of humanitarian crises. In a sector undergoing major change and under increasing pressure, Tdh improved the lives of 4.2 million beneficiaries in more than 40 countries in 2018. This increase is made possible thanks to an approach in mother and child health supported by its innovation sector.