Annual Report 2016 (English)

ANNUAL REPORT 2016

CHALLENGES AND ANTICIPATION

ANNUAL REPORT 2016 TERRE DES HOMMES

Summary

2

What do we think?

How do we work?

Every child is entitled to the right to grow up safely

Our approach is creative, innovative and proactive - Based on expertise and knowledge Together with (inter)national partners

What do we want?

A world without child exploitation

SHOPS IN THE NETHERLANDS

EMPLOYEES

VOLUNTEERS

DONORS

95

2,064

68,685

45

25

NEW DONOR AGREEMENTS

7,600

COUNTRIES

• EUROPE Italy, Malta, Cyprus, Greece, Ukraine, Netherlands • AFRICA Ethiopia, Kenia, Uganda, Tanzania, South Sudan, Zimbabwe

• ASIA Thailand, Sri Lanka, Myanmar, Laos, Indonesia, India, Cambodia, Bangladesh, Iraq, Jordan, Syria, Nepal, the Philippines

Strategy PARTNERSHIP PREVENTION

€

CHILDREN AND COMMUNITY

PROVISION

PROSECUTION

AMBASSADORS AGAINST CHILD EXPLOITATION

PROMOTION

Number of children supported by theme

CHILD LABOUR

49,461

CHILD ABUSE

24,416

COMMERCIAL SEXUAL EXPLOITATION OF CHILDREN

43,637

CHILD TRAFFICKING & CHILD MIGRATION

224,662

EMERGENCY ASSISTANCE

38,183

380,359

ANNUAL REPORT 2016 TERRE DES HOMMES

Income and expenditure 281,735

INTEREST/OTHER INCOME

996,202

3

468,628

OTHER EXPENDITURE MANAGEMENT AND ADMINISTRATION COSTS

1,266,443

AWARENESS AND EDUCATION

2,279,354 10,255,740 GOVERNMENT GRANTS

THIRD-PARTY FUNDRAISING

2,149,631

FUNDRAISING AND ACQUISITION COSTS

Ex

In

penditure

come

8,669,370

OWN FUNDRAISING

16,675,651 PROJECTS AND PROGRAMS

7,212

JOINT FUNDRAISING

TOTAL INCOME EUR

TOTAL EXPENDITURE EUR

21,493,411

21,566,555

Social media

FACEBOOK FRIENDS

LINKEDIN CONNECTIONS

35,709

39,176

1,322

TWITTER FOLLOWERS

INSTAGRAM FANS

AVERAGE NUMBER OF WEBSITE VISITORS PER MONTH

3 0.8

OF EACH EURO € 0.83 IS SPENT ON AID

4,899

A selection of our results

CHILDREN ATTENDED SCHOOL

108,973

CHILDREN WERE OFFERED LEGAL SUPPORT

9,398

1,251

Indirectly supported children / communities

CHILDREN BENEFITED FROM SHELTER AND CARE

176,646

FAMILIES RECEIVED RESCUE PACKAGES

8,192

4,694,128

ANNUAL REPORT 2016 TERRE DES HOMMES

Contents

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Challenging parties and working together in a changing world 1. WHO ARE WE? What are the core values of Terre des Hommes?

Where do we operate?

4 8 8 8

2. HOW DO WE STOP CHILD EXPLOITATION? 2.1 Approach 2.2 Alliances 2.3 Impact measurement, monitoring and evaluation 2.4 Capacity building 2.5 Knowledge management and networking 2.6 Responsibility for a sustainable future

9 9 11 12 12 13 15

3. WHAT HAVE WE ACCOMPLISHED IN 2016?

3.1 Goals for 2016 3.2 Our work in Africa 3.3 Our work in Asia 3.4 Our work in Europe 3.5 What have we learned in 2016?

16 18 20 24 28 31

4. HOW HAVE WE BEEN VISIBLE? 4.1 Our story 4.2 Campaigns 4.3 Means of communication 4.4 Events 4.5 Fundraising 4.6 Who support us with our work?

32 32 32 33 33 34 35

5. HOW ARE WE ORGANISED? 5.1 Organisational structure and employees 5.2 Safety and complaint management 5.3 Quality assurance 5.4 Risk management 5.5 Integrity 5.6 ICT

38 38 40 40 41 41 41

6. ACCOUNTABILITY OF SUPERVISORY BOARD

42

7. FINANCIAL MEANS Budget distribution per theme Cost effectiveness programs 2016 Annual account 2016 General explanation and principles for valuation and result determination Notes to the balance sheet as of 31 December 2016 Notes to the statement of income and expenditure 2016 Key figures staff Other data Auditor’s report by the independent accountant

44 44 44 46 48 51 56 58 59 60

8. WHAT DO WE WANT TO ACHIEVE IN 2017?

SWOT Annexes annual account

66 67 69

ANNUAL REPORT 2016 TERRE DES HOMMES

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ANNUAL REPORT 2016 TERRE DES HOMMES

Preface

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Cooperation Challenging parties and working together in a changing world

50 years

We have been fighting child exploitation for half a century already thanks to the support of many. This anniversary stirs up mixed feelings. On one hand we are thankful for the trust and support we have been receiving from donors and others for so long. On the other hand however, it is quite confrontational to realise that our work is still very much needed.

Throughout 2016 hundreds of thousands of children and nearly five million people around them have been offered help, education or care once again.

Challenge and anticipate

In 2016, we challenged as many stakeholders as possible to work with us towards our ultimate goal; putting a halt to child exploitation. To do so, we have embraced an innovative approach and new forms of cooperation that suit the rapidly changing character of society. For example, cooperation with commercial companies to identify and eliminate malpractices towards children working in their production chains will be a growing theme for Terre des Hommes.

In our campaign to combat child marriage we have been able to continue our innovative approach. This approach has been very successful enabling us to invest in the IMAGE project in Bangladesh once again in 2017, thereby giving underage brides a voice to escape deplorable conditions and futures. What makes this program special is the involvement of spouses and in-laws. Dutch Minister Ploumen of Foreign Trade and Development Cooperation visited the program in 2016 and was impressed with the results in evidence. Within the scope of child marriages, we are equally committed to a relatively new network in fighting child marriages called Girls Not Brides.

‘Minister Van der Steur (Safety and Justice) shared that the next few years his ministry will reserve extra money for the fight against human trafficking. Terre des Hommes is very pleased with this news.’

Our approach to commercial sexual exploitation of children has also booked success.

Throughout 2016, at least seven suspects of child sex tourism were arrested in Asia.

Thanks to the Dutch Postcode Lottery, we have enhanced the capacity of Sweetie 2.0 greatly which will allow for thousands of chatrooms to be monitored simultaneously and in an automated way in 2017, thus warning and deterring potential child abusers.

Unfortunately, as in previous years, our emergency aid teams were called into action throughout 2016 for children in acute distress. We offered support to the many victims of major flashpoints across the world and provided relief to children affected by the civil wars in the Middle East as well as child refugees in Europe.

Lobby

The legal breakthrough in our fight against child marriages in Tanzania constituted a great success. In response to our charge, the country’s Supreme Court decided that girls should not marry before their 18th. Closer to home, a majority of the Lower House of Parliament agreed with the proposal to allow for the deployment of virtual children such as ‘Sweetie’ in the detection and possible trial of online child abusers. On top of that, Dutch Minister Van der Steur of Security and Justice announced that additional money will be released for dealing with trafficking in the coming years. Terre des Hommes is very pleased with this commitment as it indirectly supports the efforts made by Terre des Hommes to combat lover boy practices through its WATCH Nederland program.

ANNUAL REPORT 2016 TERRE DES HOMMES

Recognition

We see a continuously growing appreciation for our organisation. Internationally, we have been recognised for being well-organised

by Keeping Children Safe, an international network organisation aiming at global child protection. To maintain a high standard of quality management, we have made sure that we meet the latest ISO standard, ISO 9001: 2015, as soon as possible. We were one of the first organisations in the Netherlands to meet this standard.

Like many others Terre des Hommes feels the need to constantly monitor the size and efficiency of our organisation. To maximise the impact of our resources in the future as well, we have refined our organisation in 2016. Although saying goodbye to highly appreciated colleagues is always painful, we are convinced we can further develop our organisation in a healthy, lean way in 2017.

Interim Director

Much to our regret, the end of 2016 also brought bad health news for our Managing Director Albert Jaap van Santbrink. As a result, TdH must carry on without him for most of 2017. To ensure continuity, the Supervisory Board has appointed a substitute Managing Director as of March 2017.

Gratitude

Reading our annual report you will learn what Terre des Hommes achieved in 2016 together with and thanks to the contribution of many others and how we continually seek to increase the impact of our work.

Through intensive cooperation and with the combined forces of our donors, volunteers, ambassadors, sponsors, partners, institutional donors and the Dutch Postcode Lottery we are working towards a just world that affords all children a decent existence.

On behalf of all Terre des Hommes employees, we sincerely thank you for this!

Carel Kok Managing Director

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ANNUAL REPORT 2016 TERRE DES HOMMES

1. Who are we?

8

Challenge and anticipate!

The world is changing at breakneck speed. Many international developments influence the well-being of children and young people. Wars and conflicts around the world are on the rise. Children become increasingly vulnerable to trafficking and exploitation as a result of further digitalisation and migration. This increase in the exploitation of and violence against children has been among our prime concerns in 2016.

A world free of child exploitation

Terre des Hommes aims at bringing about a world free of child exploitation. To this end we work within the framework of the UN Sustainable Development Goals and continuously encourage everyone involved (governments, companies and NGOs) to join forces. Terre des Hommes works with thematic experts and brings together international expertise to foster shared views and concrete recommendations. We convince governments to conduct child-oriented policies based on research findings. In doing so, we reinforce child protection systems. We deploy modern technologies and apply a proactive and smart approach.

What are the core values of Terre des Hommes?

Vision

Terre des Hommes strives for a world in which children are no longer exploited. We will continue our work until all children are protected and are able to grow up in a safe environment.

Mission

Terre des Hommes prevents child exploitation, removes children from situations in which they are exploited and makes sure that they can develop themselves in a safe environment.

How do we accomplish that?

Terre des Hommes is developing into a knowledge centre against child exploitation. In this context, we take a leading, independent and international role while working closely together with other partners. Our employees are experts in the field of fighting child exploitation.

What do we think?

Every child is entitled to the right to grow up safely

What do we want?

A world without child exploitation

How do we work?

Our approach is creative, innovative and proactive - Based on expertise and knowledge - Together with (inter)national partners

Where do we operate?

Terre des Hommes allocates its activities among three regions and 25 countries: Europe

Italy, Malta, Cyprus, Greece, Ukraine, the Netherlands

Africa

Ethiopia, Kenya, Uganda, Tanzania, South-Sudan, Zimbabwe

Asia

Thailand, Sri Lanka, Myanmar, Laos, Indonesia, India, Cambodia, Bangladesh, Iraq, Jordan, Syria, Nepal, The Philippines

2. How do we stop child exploitation?

ANNUAL REPORT 2016 TERRE DES HOMMES

Ambition

Terre des Hommes tackles child exploitation through quality programs, capacity building, investigations into the violation of child rights and advocating improved compliance with the Convention on the Rights of the Child. In its Strategic Plan 2016-2020, Terre des Hommes has expressed the ambition to become an expert organisation, or Centre of Excellence, for tackling all forms of child exploitation. Using our Theory of Change as a guideline, Terre des Hommes is increasingly able to step into this role effectively.

By doing this we bring about the desired change in society.

2.1 Approach Themes

Our work is divided into the following themes: • • • •

The fight against Child labour The fight against Sexual exploitation of children The fight against Child trafficking and migration The fight against Child abuse

Furthermore, emergency assistance will always be part of our activities.

T

E

H

M

E

S

CHILD ABUSE SEXUAL EXPLOITATION OF CHILDREN

CHILD LABOUR

TARGET GROUP CHILD TRAFFICKING AND CHILD MIGRATION

EXPLOITED CHILDREN AND CHILDREN AT RISK OF BEING EXPLOITED

EMERGENCY AID

VISION A WORLD FREE OF CHILD EXPLOITATION

PREVENTION

PARTNERSHIP

PROMOTION

PROVISION PROSECUTION

S

T

R

A

T

E

G

Y

Putting a halt to child exploitation has been the focus of Terre des Hommes since 2011.

This choice is based on international agreements such as the UN Convention on the Rights of the Child and the conventions of the International Labour Organisation (ILO). These agreements explicitly define the rights of children to be protected from exploitation and their forms.

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ANNUAL REPORT 2016 TERRE DES HOMMES

Theory of Change Sustainable strategy

Our sustainable approach is based on our Theory of Change Strategy: in order to achieve lasting social change we apply an integrated approach leading us through a number of strategic steps. Here, the fundamental principle is capacity building which will result

in strong public support and social acceptance in the countries we operate in. Hand in hand with our partner organisations we are well capable of providing the desired quality for our interventions and of positively influencing government policies in the long run.

a World Free oF child eXploitation

outcome

children are protected

Children at risk and victims of abuse and exploitation claim their rights

Children act as agents of change on child rights

pathways to change

Children express their needs to duty bearers and caregivers Children report cases of abuse or exploitation or risk thereof Children develop and academically perform in line with expectations for their age

intermediate outcome

strategies

Government protects children by making + adequately implementing laws and policies

Families and communities protect children

children

strategy

10

Families & communities Families support children’s access to education, health, and legal services Families and communities report child abuse and child exploitation concerns (formal or informal systems) Families generate sufficient livelihood to support their children’s wellbeing Families and communities dialogue on harmful practices/abuse of children

prevention

Law enforcement agencies convict perpetrators of child abuse and exploitation

Civil society organisations (CSO) protect the rights and best interest of children

Government

private sector

law enforcement agencies

Government holds itself accountable for the effective implementation of child rights laws and policies

Private sector acts as a strategic partner in providing equal opportunities for vulnerable children

Law enforcement agencies successfully prosecute perpetrators of child abuse and child exploitation

CSOs hold state and non-state duty bearers accountable for upholding children’s rights

Government ensures the rights of children are fully upheld and child-friendly services are available and accessible

Private sector implements a code of conduct for their staff with regard to child exploitation and abuse

Law enforcement agencies pro-actively investigate cases of child abuse and child exploitation in a child friendly manner

CSOs coordinate child rights advocacy initiatives towards private sector and/or government and/or law enforcement agencies

Law enforcement agencies facilitate the reporting of child abuse and child exploitation cases

CSOs develop/revise their policies and activities to ensure children’s best interests are served

Law enforcement agencies review their mandates to ensure they are in compliance with children’s rights as stipulated by international law

CSOs actively engage communities in decision making on child rights

Policies to ensure child rights are upheld in accordance with applicable international standards Government enters into a dialogue with CSOs about child rights and child protection

provision

To empower children and mobilise families and communities for prevention of child exploitation.

We constantly invest in education services and awareness-raising campaigns

Private sector contributes to the wellbeing of children

To protect and empower children with the aim of a safe and sustainable reintegration in society.We provide child victims of exploitation with education, shelter, gainful employment, medical care and therapy services

Private sector adopts a code of conduct for their staff with regard to child exploitation and abuse Private sector enters into a dialogue about child rights and protection

promotion To advocate and uphold the rights of children. We organize public and media campaigns, conduct research into the scale and nature of abuse and exploitation, as well as lobby for attention and change

cSos

proseCution To seek justice for the victims. We assist children and their families to report abuse and child exploitation cases, offer legal aid and social protection, train and assist police, public prosecution offices and justice departments

partners operate more effectively to deliver high quality services and influence policies to ensure child protection

to engage with partners to realise children’s rights with the meaningful participation of children

Children are exploited through Child labour, sexual abuse, sexual exploitation and traffiCking.

Children are exremely vulnerable when they are on the move from their habitual plaCe of residenCe

ANNUAL REPORT 2016 TERRE DES HOMMES

To achieve this sustainable change, we have identified six interventions which have a direct impact on society: 1. Vulnerable children claim their rights; 2. Families and communities are familiar with the rights of children and protect them; 3. The private sector contributes to the well-being of children; 4. The government protects children through the development and en forcement of adequate legislation and policies; 5. Judicial authorities sentence perpetrators of child exploitation and child abuse; 6. Interest groups protect the rights and interests of children.

PROVISION (PROTECTION)

Children who have become victims of exploitation need protection. We provide shelter, medical care, therapy and education. We help children build an independent future and support family members. Moreover, we involve communities in protecting these children in a sustainable way.

PROSECUTION (LEGAL ASSISTANCE)

How does change come about?

In countering child exploitation and to ensure that child protection is embedded in society, social change is asked for.

We are aware that achieving social change is a complex process by nature.

In order to realise the intended change and create the conditions under which children are protected, we analyse the causes of and barriers to change. After identifying important stakeholders who play a role in this process, we determine how to implement change together.

The main stakeholders are: children, families and communities, governments, interest groups, judicial authorities and the private sector.

It is vital that victims can defend themselves and are supported to do so and that those responsible for exploitation do not remain unpunished. That is why we assist children in reporting cases of exploitation to the authorities. They can count on legal assistance and support in prosecuting offenders. On top of that, we train police and legal officers on how to deal with victims and perpetrators appropriately.

PROMOTION (PUBLIC AND POLITICAL LOBBY)

What is our contribution to change?

Terre des Hommes uses the following five core strategies:

PREVENTION (PREVENTION AND EDUCATION)

We invest strongly in education of and awareness raising among both children and adults, with the express intention of preventing child exploitation. As poverty and the absence of adequate education are the main causes of child exploitation, we offer parents the opportunity to increase their income through savings and credit groups or by supporting them in starting their own business.

We campaign to draw public attention to children’s rights. We do research to identify and highlight trends and developments in child exploitation. Also, we follow and influence the decision-making of local and national governments, the European Union, companies and international organisations such as the UN. Last but not least, we advocate the implementation of these decisions.

PARTNERSHIP & PARTICIPATION

To ensure the implementation of children’s rights in society in a sustainable way, we seek to reinforce public support and social acceptance in the countries we work in. The experience and views of our partner organisations influence our

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decision-making. For this reason, Terre des Hommes invests in organizational and institutional development of southern partners, thus contributing to the social acceptance.

2.2 Alliances To establish lasting change, collaboration with other organisations involved in child protection and the fight against child exploitation is of vital importance. Terre des Hommes has established several partnerships with NGOs and the Dutch government aimed at further increasing the impact of our programs jointly.

Down to Zero

In 2016, the Down to Zero alliance started a five-year program. In this alliance, Terre des Hommes, Plan Nederland, Defence for Children - ECPAT, Free a Girl and ICCO Cooperation combine their expert knowledge, forces and experience to eliminate commercial sexual exploitation in eleven countries in Asia and Latin America, supported by the Ministry of Foreign Affairs. The organisational structure for the coordination has meanwhile been established and programs have been launched in eleven countries.

GAA

The year 2016 also marks the beginning of the Girls Advocacy Alliance. This five-year program is being implemented in ten countries in Africa and Asia by a joint effort of Plan Nederland, Terre des Hommes, Defence for Children - ECPAT Nederland and the Ministry of Foreign Affairs. This program aims at combating various forms of violence against girls and young women and enhancing their economic participation. Important stakeholders such as local governments, the private sector and local leaders at community level are reminded of their responsibility for girls and young women.

Dutch companies too are encouraged to take their responsibility in safeguarding proper working conditions to young women.

Dutch Relief Alliance

In the Dutch Relief Alliance (DRA), a cooperation which was founded in 2015 and has become unique in the world, fourteen relief organisations join forces.

In the summer of 2016, an external evaluation by the Overseas Development

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ANNUAL REPORT 2016 TERRE DES HOMMES

Institute – Humanitarian Policy Group concluded that the DRA is an effective and efficient body within the international emergency relief. Programs and activities are aligned to avoid double work. The DRA consists of CARE Nederland, Cordaid, Dorcas, ICCO & Kerk in Actie, Oxfam Novib, Plan Nederland, Save the Children, Tear, Terre des Hommes, Stichting Vluchteling, War Child, War Trauma Foundation, World Vision and ZOA.

2.3 Impact measurement, monitoring and evaluation How do we measure our results?

Terre des Hommes works according to a monitoring and evaluation framework in which all expected results are recorded and which describes how and when these results are measured. Using this framework we measure both direct results of our work (outputs), the effect of interventions (outcomes) and to what extent the intervention contributes to

the elimination of child exploitation (impact).

Four times a year, project partners report the direct results of their work in an online system that was launched by Terre des Hommes in 2016. Subsequently, we compare the achieved results to the planned results as laid down within the framework. Significant discrepancies are discussed with partner organisations during field visits that take place twice a year to verify the reports and discuss possible adjustments in the program.

To measure the total impact of our activities, we not only collect quantitative information (output) but qualitative information (outcome) as well. Outcomes tell us to what extent the behaviour of those involved has been changed by our interventions. By continuously comparing this information accurately with the ultimate goal of our programs allows us to determine if our activities have the right impact and to assess the execution of our programs.

Terre des Hommes also verifies if our programs indeed put a halt to child exploitation in the long term, the socalled impact. We measure the decrease in child exploitation and the way the lives of children have been changed by our programs in four ways: 1. By collecting short-term and long-term results; 2. By collecting individual stories of children that show in detail how our work has affected their lives; 3. Using general figures and reports of bodies such as The World Bank, UNDP, Unicef, the UN Committee on the Rights of the Child, ILO and other UN agencies; 4. By collecting lessons learned and best practices for continuous (quality) improvement and program development.

2.4 Capacity building In collaborating with our partner organisations we consider capacity building a crucial element in order to bring about social change. We build capacity by reinforcing both local civil societies and government agencies. In doing so, the protection of children’s interest no longer depends on international NGOs like Terre des Hommes in the long run.

How do we build capacity?

Quality making sure that the output is of ‘sufficient quality’ if the needs of specific target groups are considered. Observing children’s rights in the deployment of all activities, projects and interventions is of great importance.

Governance focus on the legal status (registration), the planning processes and the internalisation of the strategy, mission and vision of partners.

External relations, networking and advocacy creating a situation in which local partner organisations deploy their capacity to influence other stakeholders around them.

Financial Management focus on design of an adequate financial system, following appropriate procedures, including internal and external audits, and the deployment of qualified financial personnel.

Project cycle management systems comprises all stages of project management: from planning, implementation, monitoring and evaluation to the learning moments and the actual adjustments.

ANNUAL REPORT 2016 TERRE DES HOMMES

2.5 Knowledge management and networking

In achieving our ambition to become a Centre of Excellence against child exploitation, two teams have been established to jointly monitor and improve the quality of our programs. The Programme Implementation Unit (PIU) ensures that impact measurement, monitoring and evaluation procedures are rolled out and function affectively. The Technical Expertise Unit (TEU) in turn enhances the quality of the programs, conducts investigations into violations of children’s rights and advocates improved compliance of national laws and policies with the Convention on the Rights of the Child. For the sake of sound mutual alignment, advisors from both teams exchange knowledge and expertise.

Throughout 2016 we also invested in a meta-evaluation, tightened the quality requirements for our programs and further developed the Theory of Change.

On top of that, cross-theme elements of programs such as gender equality, inclusiveness and child participation were surveyed and a program reform regarding institutional care was set in motion.

Important survey results Child labour in mica mines in India

Background Mica is a shiny mineral used in a variety of products such as cosmetics and paint products. India is the world’s biggest mica producer. An estimated 20,000 children have jobs in the many illegal and dangerous mines.

Survey ‘Beauty and a Beast. Child Labour in India for Sparkling Cars and Cosmetics’ focuses on the duty of care among companies: to what degree are they alert to child labour and do they address it within their production chains?

Results The survey shows that organisations cannot present evidence that their chains are free of child labour. Following the survey report, structural consultation is now taking place with all stakeholders to counter and prevent child labour in mica mines.

Vulnerabilities of children in Tanzania

Background The Mtwara region has been an area of large-scale gas extraction for years.

The presence of foreign companies and foreign money – not only provides additional income but also causes significant problems among traditional communities in remote villages.

Survey ‘Children & FDI. Profit or Problem?

The impact of foreign direct investment on child vulnerability in Mtwara region, Tanzania’ reports on serious violations of child rights and reveals the vulnerabilities of children in Mtwara.

Results This report has been submitted to the Tanzanian government and contains important information to reinforce local child protection systems.

Hidden slavery in Bangladesh

Background Many children in Bangladesh – often daughters of the poorest parents – become victims of violence, abuse and neglect.

Survey Hidden Slavery, Child Domestic Workers.

A Study on the circumstances of Child Domestic Workers in Bangladesh” shows the hidden suffering of children who (are forced to) do domestic work. These children are victims of violence, abuse and neglect.

The report contains recommendations to prohibit practices involving children that are being exploited as domestic workers by law and to enforce this law with control and strict sanctioning mechanisms.

Results This report has attracted a lot of media attention. Nearly all newspapers in Bangladesh as well as several TV stations reported on the punishing living conditions of children who are either forced or obliged to do domestic work, who cannot go outside or attend school, who work extremely long hours, mostly without pay or any other compensation. Domestic work has meanwhile been included in the list of harmful work for children. It is now one of the top political priorities of the Bangladesh government to stop this harmful tradition.

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Rights of migrating children

Background In Asia a survey was conducted on the rights of migrating children.

Survey ‘Open borders? Comparative study of the potential impact of the ASEAN (Association of Southeast Asian Nations) economic community on child migration and trafficking’ shows that the new policy of several member countries of ASEAN to no longer control the internal borders does not apply to low-skilled migrants who cross the borders to find work or a safe haven. Children are not protected from recruiters and human traffickers in spite of the strict border controls that are still in operation to counter illegal migration of low-skilled people. The report calls upon ASEAN and the governments involved to safeguard the rights of child migrants and to offer them protection against exploitation and violence.

Contributions to international conferences Participating in international conferences allows us to extend our network and increase our visibility while staying informed on activities of other NGOs. Research findings as well as the latest program results are presented at international fora and critically reviewed by an expert audience.

• During the ISPCAN (International Society for the Prevention of Child Abuse and Neglect) a presentation was given on commercial sexual exploitation of children in Kenya. The use of internet and social media is on the rise in Kenya. As children are hardly aware of the dangers of the internet, they are an easy target for child abusers.

• At the Alternative Care Conference, which was organised by the University of Geneva in October 2016, Terre des Hommes presented results of its activities in Uganda. In this context, we have developed our vision on alternative care for children who cannot grow up with their parents. Children often leave shelters, institutions and boarding schools in a traumatised state. Terre des Hommes associates itself with the global movement that advocates shelter and care for children in their

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ANNUAL REPORT 2016 TERRE DES HOMMES

own familiar environment, surrounded by family or through formal foster care allowing children to grow up in families or small-scale family homes. In some complex cases, however, it is inadvisable to place a child in a certain family (for instance when that particular family used to force the child in question to perform sexual acts before a webcam).

In such cases, Terre des Hommes will find a safe and adequate place where a child can stay temporarily.

• At the ‘Business and Human Rights Conference’, which was organised by the Belgian University of Leuven, the main findings of our report ‘Beauty and a Beast. Child Labour in India for Sparkling Cars and Cosmetics’ were presented. The presentation included an explanation of the multi-stakeholder processes which involved mapping child labour in the supply chains of mica producing and mica processing industries.

Lobby and networking

Terre des Hommes lobbies in the Netherlands, through the TdH Federation at the UN and in Brussels via the European Union. The International Federation also serves as a platform to discuss global developments and align programs and campaigns. In doing so, the Federation enhances the international power of Terre des Hommes significantly.

Terre des Hommes is a participating member of a number of important (inter) national networks which promote several issues related to child rights among decision-making bodies.

Some results of our lobbying activities and conferences Lobbying in the Netherlands Following the report on large-scale child labour in the Indian mica mines, parliamentary questions were asked in the Dutch Parliament followed by a formal reaction from the government. In September 2016, a petition aimed at putting a halt to child labour in the Indian mica mines, signed by some eleven thousand participants, was submitted to the Lower House of Parliament. Meanwhile, in February 2017, the House passed a law making the duty of care for prevention of child labour mandatory for companies, Terre des Hommes played an important role in the realisation of this law with lobbying activities, advice and research.

A majority of the Lower House of Parliament agreed with the proposal to deploy virtual children such as the ‘Sweetie’ avatar in the detection and possible trial of online child abusers.

including immigration detention of children, at regional level in Asia through the Asia-Pacific Civil Society Forum on Sustainable Development (Bangkok), the ASEAN Children’s Forum (Hanoi) and the COMMIT Youth Forum (Laos).

Immigration detention of children is a government measure to detain migrant children for administrative purposes, such as establishing children’s identity or preventing an illegal stay in the country. Terre des Hommes has protested immigration detention of children while advocating the rights of children who are confronted with this form of detention. Through our partner organisations, children are given the opportunity to share their experiences, with local authorities among others, and to make recommendations.

Lobbying in Africa The large number of child marriages in Tanzania (37% of all women marry before the age of 18) prompted Terre des Hommes and partner organisation Agape to lobby the increase of the legal minimum age for girls to marry from 14 to 18. In 2016, the Supreme Court passed a positive judgement on the matter.

Lobbying in Asia We have lobbied against child trafficking and the excesses of immigration policies,

We participate in several networks in the different regions: The Netherlands • Global Coalition for Education under Attack • Coalition Stop Child Sex Tourism • Don’t Look Away Campaign • Stay Human • CSR Stakeholders Round Table Netherlands • Ready for Change • SDG 8.7 Alliance • Girls Not Brides

East Africa • African Union Committee of Experts on the Rights and Welfare of the Child (Observer status) • Rise Learning Network • East and Southern African child protection systems strengthening working group

Asia • UN-ACT: UN platform Against Child Trafficking • UNICEF Regional Interagency Child Protection Working Group • The Asia Pacific Financial Coalition Against Child Pornography • East Asia and Pacific Regional Working • Group on Child Protection • Child Rights Coalition Asia • Asia Pacific Regional CSO Engagement Mechanism (AP-RCEM) • Global Partnership to End Violence Against Children

ANNUAL REPORT 2016 TERRE DES HOMMES

2.6 Responsibility for a sustainable future Corporate Social Responsibility (CSR) Terre des Hommes has defined a CSR policy that focuses on three areas: People, Planet and Profit. Considering our common purpose, mission and vision, with a special focus on respecting and promoting children’s rights, Terre des Hommes not only encourages other organisations to act responsibly but is more than willing to act accordingly.

Where do we stand in 2016?

People • Terre des Hommes has identified four core values: a result-oriented approach, cooperation, entrepreneurial action and acting with integrity. These values determine the way we (wish to) work with each other, alliance partners and other stakeholders.

• In accordance with the regulations and remuneration of its management, Terre des Hommes has aligned its system of remuneration as well as working conditions with the standard as defined by the Wijffels Commission. In the regions, we also comply with local regulations regarding HR and remuneration policies.

Planet

Profit

• Our 45 second hand stores contribute to a sustainable world too.

A variety of products that are still of good quality are given a second life in our stores. Our programs benefit directly from the proceeds of the stores.

• Terre des Hommes is an organisation with a non-profit aim. At the same time, it is important for our organisation to establish and maintain a healthy balance between income and expenses. If required, we adjust our strategic plans.

• Terre des Hommes works towards a paperless office. Recent measures to bring this about include the transfer of the IT infrastructure to the ‘cloud’. Moreover, automatic light switches have been applied at several locations in the office.

• As a foundation, Terre des Hommes also complies with ANBI standards which are relevant in validating the ratio between income and expenses for fundraising.

UN Sustainable Development Goals Terre des Hommes is committed to making a direct contribution to three Sustainable Development Goals as established by the United Nations, which are directly related to child exploitation.

These are: Goal 5.2 Elimination of all forms of violence against women and girls in the public and private environment, including human trafficking and sexual and other forms of exploitation; Goal 8.7 Take immediate and effective measures to eradicate forced labour, ban and terminate modern slavery and human trafficking as well as the worst forms of child labour, including the recruitment and deployment of child soldiers. By 2025, all forms of child labour must have come to an end Goal 16.2 Putting a halt to abuse, exploitation, trafficking and all other forms of violence including torture of children.

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ANNUAL REPORT 2016 TERRE DES HOMMES

3. What have we accomplished in 2016?

16

Europe EMERGENCY AID

11,136

Number of children supported by theme

Africa

EMERGENCY AID

13,392

CHILD LABOUR

CHILD ABUSE

SEXUAL EXPLOITATION OF CHILDREN

CHILD TRAFFICKING AND CHILD MIGRATION

2,707

2,082

2,892

13,732

ANNUAL REPORT 2016 TERRE DES HOMMES

Asia CHILD LABOUR

46,754

SEXUAL EXPLOITATION OF CHILDREN

41,555

CHILDREN SUPPORTED

380,359

In 2016, Terre des Hommes supported 380,359 children through its worldwide programs against child labour, child trafficking, commercial sexual exploitation of children and sexual abuse. The next pages visualise the achieved results in the various regions.

EMERGENCY AID

13,655

CHILD ABUSE

21,524

CHILD TRAFFICKING AND CHILD MIGRATION

210,930

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ANNUAL REPORT 2016 TERRE DES HOMMES

3.1 Goals for 2016 Each year we put together an annual plan, based on our Strategic Plan 2016 -2020.

What goals did we aim for in 2016, the first year in this 5-year plan? And to what extent have these goals been achieved?

Program goals

Organisation goals

and our model for ending child exploitation by 2030;

1, 2016);

3 80% of our programs closely match our Theory of Change 3 The use of IATI reporting (officially introduced on January 7 Terre des Hommes has a direct effect on the lives of 500,000 children; number of children reached: 380,359.

We have reached fewer children than planned because we partner with fewer program partners and we had less money to spend. However, we are observing a continuing improvement of the quality of our support;

3 Improving IATI reporting 2016; 3 Compliance with the new IS0 certification 9001: 2015 in 2016;

3 The design and further completion of the IT within the entire organisation;

3 Over 2,000,000 adults and children are indirectly supported as beneficiaries of our programs;

7 Training of the MT in the field of management and team building skills; The training was scheduled for the end of the year which coincided with the reorganisation. This process demanded all the attention leaving no room for training of MT members. This will still take place in 2017.

3 30,000 children have used services from our partners; 3 500,000 parents with children from local communities, vulnerable to the dangers of exploitation, participate in awareness raising activities;

3 500 civil society organisations work together through various networks to promote children’s rights;

3 Performing 140 media campaigns focused on tackling

Marketing, communication and fundraising goals

3 Total income amounts to 21.5 million euros; 7 We have 75,000 active donors. In 2016, we adapted the

child rights violations;

3 Training 3,000 officials at public prosecution departments and police units in protecting children and using child-friendly interviewing techniques;

3 Organising 50 training sessions for staff working in the

3

private sector with regard to the Convention on the Rights 3 3 of the Child, Code of Conduct and UN Global Compact; 3 3 The realisation of 2 lobby letters; 3

3 Conducting 4 investigations; 3 Performing 4 presentations at conferences;

7

definition of active donors to draw a more realistic picture. From 2016, a person is considered an active donor if he or she has actually made a donation during the last 12 months, rather than someone who has been active during the last 24 months. As a result, the numbers are lower than planned.

30.000 followers on social media and a large number of people involved in our campaigns; 85% brand awareness among our target group; 30,000 website users a month; Proceeds of our stores amount to 2.1 million euros; Income from so-called ‘special relationships’ amounts to 2.3 million euros; ‘Private donors contribute € 9.2 million. We have collected 8.7 million euros. This is below budget and is mainly due to a lower contribution from the legacy segment, which is more difficult to budget.

Finance

7 The income from own fundraising was € 3 million below budget, which was almost entirely compensated for by government grants.

3● 86% of the total costs spent on goals (€ 17.7 million) was spent on assistance.

7 ● The cost of management and administration amounted to € 1.0 million, which is € 0.2 million above budget. These additional costs arise from the reorganisation carried out in 2016, which will reduce the costs structurally from 2017.

ANNUAL REPORT 2016 TERRE DES HOMMES

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Jordan 20

ANNUAL REPORT 2016 TERRE DES HOMMES

South Sudan Uganda

Ethiopia Kenya

3.2 Our work in Africa Tanzania

Facts

Number of children supported in

Zimbabwe

ETHIOPIA

12,744 KENYA

1,291 UGANDA

3,785 TANZANIA

3,593

TOTAL NUMBER OF CHILDREN SUPPORTED IN AFRICA

34,805

Projects in Africa

SOUTH SUDAN

5,300 ZIMBABWE

8,092

CHILD LABOUR

CHILD ABUSE

4

4

NUMBER OF CHILDREN REGISTERED AT SCHOOLS

15.497

COMMERCIAL SEXUAL EXPLOITATION OF CHILDREN

8

NUMBER OF CHILDREN PROVIDED WITH LEGAL ASSISTANCE

612

CHILD TRAFFICKING

EMERGENCY RELIEF

11

2

NUMBER OF COMMUNITIES OFFERED EDUCATION

NUMBER OF CHILDREN PROVIDED WITH SHELTER

1.124.462 7.675

ANNUAL REPORT 2016 TERRE DES HOMMES

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The fight against child labour in Africa One in four children in East Africa has a job and (often) does not attend school. As a result, they miss the opportunity to break the poverty cycle through education. In Uganda and Tanzania, Terre des Hommes focuses on the worst forms of child labour, such as the mining industry and domestic work. We help these children to quit their dangerous jobs by finding alternative sources of income for their parents. We also call on the government to improve the enforcement of laws against child labour.

Child story

Shakira (16): “After the death of my parents, I go live with my grandmother.

Unfortunately, she dies two years later too. My aunt adopts me in a slum area in Kampala. She immediately makes it clear to me that she has no money for my education.

“If you want to go to school, you have to work for it yourself,” she shouts at me.

She has a job for me in her improvised restaurant around the corner. I’m just 14 years old and have to work all day, for only € 0.25 a day. Every single day I realise that it’s impossible to save something from the little money I make. Returning to school will remain an unattainable dream.

But then Platform for Labour Action (PLA, Terre des Hommes partner) maps child labour in our neighborhood. PLA stands up for exploited children. With the support of Terre des Hommes I am engaged in vocational training to become beautician.

On working days, I work in a beauty salon and serve my own customers during the weekend. I now earn nearly € 4, per customer which is enough to save for my future dream: to run my own salon.”

‘Back to school seemed an unattainable dream’ Output results

A selection of the output results of our work on child labour in Africa in 2016 is listed below • 1,344 former child labourers were assisted in going back to school; • 237 victims of child labour were given legal assistance; • 15,102 children and 517,089 parents/caregivers were educated about the risks of child labour and the importance of education; • 50 local child protection committees were provided with support; • 709 local government officials were educated about children’s rights and child protection.

Program story

The issue of child labour in the slums of Kampala’s city center has been mapped by means of door-to-door research by trained PLA volunteers.

A total of 893 vulnerable households with 422 children (245 girls and 177 boys) were identified. Sixty percent of these children turned out to be the victim of child labour: 209 worked as domestic slaves, 52 other children were engaged in other forms of child labour.

In Uganda, children from 14 years of age are allowed to work to earn a living, so long as the work does not harm their health, safety or morale.

The International Labour Organization has determined that the work may not hinder the development of the child, nor impede their educational opportunities.

Important outcome results

• Two mine owners in Tanzania participated in an information session in 2016 and expressed their opposition to child labour in the mines. They advised parents not to let their children work in the mines.

• In June 2016, 422 children in Kampala, Uganda, who worked as domestic slaves, reported their cases of child abuse to the police.

• In 2016, the Tanzanian Government informed the public about child labour and organised meetings to encourage parents to send their children to school or vocational training.

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ANNUAL REPORT 2016 TERRE DES HOMMES

The fight against child trafficking in Africa Child trafficking is common throughout East Africa and has many different faces. The growing urban areas in particular strongly appeal to children from the mostly poor rural areas. A lot of child trafficking takes place under false pretenses; Children who are lured with promises of a better life, such as the opportunity to go to school, which are not met on arrival.

Terre des Hommes focuses on victims of child trafficking as well as on protecting migrant children during their journey.

Program story MOBILISING ‘EYES AND EARS ‘WITHIN THE COMMUNITY The slums of Kenya’s capital Nairobi are an important stopover and final destination for victims of child trafficking. They are densely populated areas where it is quite easy to force children to work without being caught. Girls end up in families to do domestic work; Boys often find jobs in sorting garbage on huge landfills that border the slums or as goatherds and odd-jobbers in the illegal slaughterhouses that are hidden in the slums.

To recognise and intercept victims, we work together with our so-called ‘ears and eyes’ within local communities, i.e.: local volunteers as well as representatives of small-scale community initiatives and organisations. Our aim is to establish a network of local informants, which will continue to function after termination of our program. These informants are all volunteers.

One of the first activities is to mobilise these local informants and train them in the principles of child protection and in recognising child trafficking, so that they report possible cases to the authorities. This is done in close cooperation with local authorities, such as the district leader and the child protection officer for the district.

‘It’s not about financial compensation, it’s about passion. Every child is entitled to protection.’

District Leader of slum during mobilisation meeting of local informants in Nairobi - Kenya

Output results

A selection of the output results of our work against child trafficking and unsafe migration in East Africa in 2016 is listed below: • 2,784 victims and vulnerable children were assisted in going back to school; • 58,923 children and 450,947 community members educated on the risks of migration and the importance of education; • 152 local child protection committees, consisting of 200 members, supported; • 691 local government officials trained in children’s rights and child protection.

Important outcome results

• During the African Day of the Child in 2016, 229 children demonstrated against child trafficking in the Sekela District in Ethiopia.

• Five media houses in Kenya started promoting the issue of child trafficking in 2016.

• Children in North Gondar, Ethiopia, participate in anti-child trafficking associations at school. By the end of 2016, anti-child trafficking associations have reported 30 cases of child trafficking.

• Local NGOs in Kenya disclosed six cases of child trafficking to the public in 2016.

ANNUAL REPORT 2016 TERRE DES HOMMES

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Child story ‘It’s 1996. In the middle of the night, Kony’s rebels attack St. Mary’s College in Aboke, where I am a boarding school student. They take all the girls with them with the intention of abusing them as a child bride or sex slave. Sister Rachelle chases the rebels and manages to release 100 students, including myself. Unfortunately, thirty girls are not released by the rebels.

Parents are scared to send their children to St. Mary’s anymore. I also attend another school now.

There, teachers and students call us Kony’s Wives. Thanks to Terre des Hommes, who started supporting St. Mary’s College, the school stays open and I can return.

I graduate, then study at the university, meet Jos, marry him and move to Zaandam. Terre des Hommes has done a lot for me and other Ugandan war children. To return the favour, I now work as a volunteer in the Amsterdam Terre des Hommes shop.’

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ANNUAL REPORT 2016 TERRE DES HOMMES

Syria Iraq Nepal

Jordan

India

Myanmar

Bangladesh

Laos Thailand

Cambodia

The Philippines

Sri Lanka

3.3 Our work in Asia Indonesia

Facts

Number of children supported in THAILAND

INDIA

BANGLADESH

THE PHILIPPINES

SRI LANKA

CAMBODIA

NEPAL

JORDAN

MYANMAR

LAOS

INDONESIA

IRAQ I SYRIA

14,742 4,134 8,073

161,427

41,500 40,500

13,221

12,482

TOTAL NUMBER OF CHILDREN SUPPORTED IN ASIA

13,409 3,711

11,275

9,944

Programs in Asia

334,418

CHILD LABOUR

CHILD ABUSE

8

5

COMMERCIAL SEXUAL EXPLOITATION OF CHILDREN

13

NUMBER OF NUMBER OF CHILDREN ENROLLED CHILDREN RECEIVING AT SCHOOLS LEGAL ASSISTANCE

93,476

CHILD TRAFFICKING

EMERGENCY RELIEF

16

4

NUMBER OF COMMUNITIES EDUCATED

NUMBER OF CHILDREN GIVEN SHELTER

8,786 3,569,665 50,600

ANNUAL REPORT 2016 TERRE DES HOMMES

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The fight against commercial sexual exploitation of children in Asia

In Asia, commercial sexual exploitation of children is on the rise, including via the internet. Terre des Hommes combats this form of exploitation in nine Asian countries through prevention, assistance to victims and their families but also by lobbying governments and, for instance, the travel industry. In this way, 1,617 children in Sri Lanka, who are vulnerable to sexual exploitation, were educated on their rights.

Child story Money and food. This is what a 63year-old child sex tourist lures boys with during his frequent visits to the Nepalese capital, Kathmandu. Then, he abuses the children in his hotel room.

One of the victims is a 14-year-old boy, ‘John’ (fictitious name, ed.). Once in the hotel room, the boy tries to escape in vain. “If you go to the police, we will both be arrested,” threatens the man. And so John keeps his mouth shut. Ten days later, John finally confides in someone and tells him what has happened to him.

He still doesn’t fully realise that he has been sexually abused. The police are called who take immediate action. They arrest the perpetrator in his hotel who denies staying at the hotel and having anything to do with John. He claims that the boy is falsely accusing him.

The police investigation, however, proves otherwise and the perpetrator finally confesses. His case is still pending.

Output results

The local partner of Terre des Hommes offers John a safe shelter where he receives therapy and medical care. He takes the opportunity to follow a vocational training with both hands so that he no longer has to live on the street.

‘If you go to the police, we will both be arrested’

A selection of the output results of our work against commercial sexual exploitation in Asia in 2016 is listed below: • 35,191 children at risk of becoming victims of commercial sexual exploitation go back to school; • 806 families, whose children are at risk of being sexually exploited, participate in a social enterprise; • 3,634 police and judicial officials were trained in child protection and in the application of child-friendly interrogation techniques; • Three teaching methods have been developed explaining to children how they can safely access the internet; • 3,166 victims of (online) child sex tourism receive psychosocial assistance • We have established 635 partnerships with various companies to tackle child sex tourism and online sexual exploitation

Important outcome results

• In Indonesia, the Children’s Forum on Commercial Sexual Exploitation of Children publicly opposed CSEC during International Children’s Day; ➢• In 2016, 38 women from 8 villages in India decided not to relinquish their children to the Devadasi system as a sex slave. This is a religious tradition in parts of southern India, where parents “marry their daughter off” to a deity or temple.

The so-called marriage then serves as a carte blanche for sexual exploitation of these young children by higher castes.

Instead of handing them over to the Devadasi system, the 38 women signed their daughters up for education thanks to funds generated by Terre des Hommes projects. ➢• In the Philippines, former victims of sexual exploitation have started a catering business together. This catering company provided employment to dozens of other former victims of sexual exploitation throughout 2016.

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ANNUAL REPORT 2016 TERRE DES HOMMES

Combating child abuse in Asia In Bangladesh, 17 percent of all girls marry before the age of 15.

Half of the children in India claim to have been sexually abused ...

The causes are complex but are related to poverty, the disadvantaged position of girls and the influence of traditions and religion.

Terre des Hommes focuses on the prevention of child marriages and abuse in India and Bangladesh. In addition, we help girls who are already married to make the right choices when it comes to having children, for example. Thus, child bride Bithy decided to temporarily protect herself from pregnancy.

Child story DREAM AND SHAME

When rumours reach the parents of Bithy (15) that their daughter is dating a 24-year-old boy from a nearby village, they decide to marry the girl off immediately. Otherwise, the shame for the family would be too big. Their dream of seeing their only child get a sound education and become a teacher falls apart. Immediately after getting married, Bithy moves in with her in-laws and her husband, who is still studying. She is no longer allowed to go to school and is pressured to get pregnant soon. But Bithy is not ready yet.

The local partner of Terre des Hommes in Bangladesh meets the girl, her husband and in-laws. She involves them in meetings where families are educated about the dangers of child marriages and children’s rights by means of video and theater education, among other things.

Bithy’s husband joins a special training for spouses and he and his wife are then referred to a healthcare center where they are informed about contraception.

Now, two years later, Bithy goes to school again - even though her husband and in-laws did not agree with this at the beginning. She is still actively involved in

Output results

the education activities and the partner of Terre des Hommes pays her regular visits at home to stay on the ball. Bithy’s husband now uses contraceptives. Bithy does not want to get pregnant for some time to come and hopes to be able to postpone it

until she is at least 20 years old. “My life has changed. I hope I can still make my parents’ dream come true and become a teacher.”

Programmaverhaal

Program story IMAGE

Bithy participates in the IMAGE program. This is the first program in Bangladesh especially designed for married girls. The program not only involves the girls, but their spouses and in-laws too. It is the first program to generate media attention for this invisible, forgotten group of children. Dutch Minister Ploumen, who visited the training center, said: “Everyone must know these stories. It is very important to trigger a behavioural change. “

A VOICE FOR CHILD BRIDES

‘Sometimes I wonder why I made this mistake. If I had continued going to school, my life would have been a lot easier. I did not know much about life at that time.

Therefore, I thought it would be better if I got married.’

Sukhi (16) is one of the child brides who tells about her life in a series of videos. Watch the videos at www.tdh.nl/een-stem-voor-kindbruiden

A selection of the output results of our work against child abuse in Asia in 2016 is listed below: • 209,154 people educated about child abuse; • 5,521 victims of child abuse go to school; • 8,638 families of vulnerable children were trained to increase their income (which reduces the risk of their children becoming a victim of exploitation); • 3,698 children received psychosocial assistance.

Important outcome results

• In the Kurigram district in Bangladesh, the local government has prevented 8 child marriages thanks to child helplines; ➢ • In May 2016, special teams were established in 68 villages in India to protect children from exploitation; ➢ • In Bangladesh, so-called Change Makers persuaded the local government to prevent 4 child marriages in 2016.

ANNUAL REPORT 2016 TERRE DES HOMMES

EMERGENCY RELIEF IN ALEPPO

Terre des Hommes provides emergency relief because children are more vulnerable to exploitation in emergency situations.

Syria is one of the countries that Terre des Hommes offers assistance to. This is done through our sister organisation in Italy. Bruno Neri of Terre des Hommes Italy and Head of Humanitarian Operation in the Syrian Crisis, visited Aleppo in August 2016. “The situation I witnessed in the occupied territories was dramatic, especially in Aleppo. Children and their families are trapped in a catastrophic situation.

Their lives are at risk. “ Together with its local partners, Terre des Hommes distributed nearly eleven thousand food packages to refugees in Aleppo, thus supporting the same number of families (as many as

27

over 54,000 people) including nearly 22,000 children. A food package contains enough basic food for a family to live for six weeks.

In addition, Terre des Hommes has furnished three child-friendly areas where children and women receive psychological support. In this way, Terre des Hommes reaches 7,000 people. In Homs, the organisation carries out a special pilot project for children with a disability. As a result, 300 children - whose limbs have been amputated - receive psychotherapy, medical care and psychological support.

This care is also offered to their parents.

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ANNUAL REPORT 2016 TERRE DES HOMMES

The Netherlands

3.4 Our work in Europe

Ukraine

Italy Greece Malta

Facts

Cyprus

Number of children supported in ITALY

MALTA

CYPRUS

GREECE

UKRAINE

THE NETHERLANDS

3,235 *

*

*

7,901

TOTAL NUMBER OF CHILDREN SUPPORTED IN EUROPE

**

South Sudan

ProgramsUganda

11,136

Ethiopia Kenya

COMMERCIAL Tanzania SEXUAL

EXPLOITATION OF CHILDREN

1

EMERGENCY RELIEF

5

Output results * In these countries, activities that were conducted throughout 2016 mainly improve the lives of children indirectly, such as training coaches. In other cases, concrete figures could not be presented as they were related to concluding activities of existing programs. **) In the Netherlands, the WATCH Nederland program was started at the end of 2016. Concrete results will become available throughout 2017.

A selection of the output results of our emergency relief in Europe in 2016 is Zimbabwe listed below: • Number of children assisted through protection, psychosocial assistance and recreational activities: 11,036; • 100 children received food packages or clean drinking water.

ANNUAL REPORT 2016 TERRE DES HOMMES

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The fight against sexual exploitation of children in the Netherlands

Program story Watch Nederland

In our country, teenagers are forced to have commercial sex in cars, cellars, garage boxes, hotels or at other hidden locations on a daily basis. This form of human trafficking must stop. To this aim, Terre des Hommes, along with Fier and the Center for Child and Human Trafficking have launched WATCH Nederland, an innovative offensive against sexual exploitation of children, consisting of a National Hotline and an Observation and Action Unit.

National Hotline WATCH Nederland

WATCH Nederland is available to everyone, be it victims, relatives, caregivers, friends, acquaintances or anybody who suspects sexual exploitation of minors including lover boy practices. WATCH Nederland takes signals seriously, refers to the appropriate authorities, if necessary, and collaborates with the Obser-

Terre des Hommes has engaged the Tracks Inspector company for two programs: Sweetie 2.0 (tracing and scaring off webcam child sex tourists) and WATCH Nederland (countering sexual exploitation of minors in the Netherlands). Hans Henseler, Director of Tracks Inspector, is excited about the collaboration: “Our team is experienced in the development of software for tracking services that can be easily operated, which is scalable and secure and can be operated on separate servers. Although Terre des Hommes is not an investigation service itself, the Sweetie 2.0 program was designed with the intention of submitting the ultimate

vation and Action Unit to verify reports of exploitation and share these with the police.

Observation & Action Unit

This unit follows up on reports and conducts proactive investigations. Web crawlers search the internet for suspicious sex ads. Furthermore, the unit uses fake profiles on web forums, social media and in chat boxes with the aim of identifying recruiting teenage pimps.

Also, the unit places locale ads that deprive customers who prefer ‘as young as possible’ of their anonymity. The unit submits files with criminal facts to an expert of the National Police on a weekly basis. WATCH Nederland monitors each case until the perpetrator(s) are arrested and the victims are released.

Emergency relief in Europe

They are in the news almost weekly.

Crowded boats with refugees on the

software to investigation authorities at a later stage. Therefore, not only is the development of the Sweetie 2.0 software interesting but also the subsequent stage when Terre des Hommes wants to disclose the software to police forces around the world. “ ‘Currently, the Sweetie 2.0 software is operational. Initially we were anxious to see if it would be possible to automate Sweetie’s conversation. This seems quite successful. The conversation is certainly not perfect, but a lot of dialogue is taking place so far with Sweetie. We are quite excited to find out whether the way in which the software

Mediterranean Sea. Saved just in time, or not at all. Since as early as 2011, the Faro project of Terre des Hommes has been providing shelter in Sicily to migrating children and their parents who survived the passage.

Over 177,000 refugees arrived in 2016, including a growing number of children without parents or supervisors, Terre des Hommes notes: nearly 25,000 throughout 2016, which is twice as many as in 2015. As a result, our work in the four harbours and the shelters in Sicily, but also around of Milan Central Station, remains urgently needed. The TdH teams focus primarily on children traveling alone and families with children. Last year, we provided practical support to 3,235 children, including clothes, food and drinks, but also basic psychological help and legal assistance. We will continue doing this in 2017.

is deployed will indeed have a preventive effect. Already it is evident however, that the developed software is a useful tool for investigators who seek to identify targets in chat rooms and through instant messaging under a false identity. As such, Sweetie 2.0 can be really useful to police forces around the world. At the same time, it turns out that the Sweetie 2.0 project has actually rejuvenated the old Sweetie success.

There is great interest thanks to the excellent communication of Terre des Hommes regarding this issue. Thus, Sweetie 2.0 is not only effective in chatrooms but in the media and even in politics as well.’

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ANNUAL REPORT 2016 TERRE DES HOMMES

Child story Wurry Jallow (19) was given shelter by Terre des Hommes within the framework of the Faro project in Sicily, where he arrived after a trip over the Mediterranean.

‘My name is Wurry Jallow. I’m from Gambia and I am 19 years old. I love to skate with my Italian friends. I am the elder of eleven children. When my parents were working on the market, I took care of my brothers and sisters. Two years ago I left Gambia, looking for a better future. I haven’t seen my family for two years now, but I often speak to them by phone or skype.

Terre des Hommes gave me the opportunity to study and become a dental assistant. My internship supervisor soon realised that I’m good at it and that I am talented. She recommended me for the Terre des Hommes scholarship, to further specialise myself. She also offered me to be my personal coach.

I was very happy when I heard that I would get the scholarship!

I started in February and the course will take a year. During that time, I must also pass a language test for the Italian language.

I have big plans for the future; I would like to return to my country one day and help our people, because in Gambia there is no effective healthcare.’

ANNUAL REPORT 2016 TERRE DES HOMMES

3.5 What have we learned in 2016 In 2016, Terre des Hommes conducted a meta-analysis of all evaluations in the period 2012-2015. The most important lessons learned that we obtained from this analysis will serve as basis for our policy for the years to come.

COMMERCIAL SEXUAL EXPLOITATION

• The combination of providing education and legal support have resulted in an increasing number of victims of sexual exploitation who complete their education.

• Vocational training proves to be effective in rehabilitating victims.

CHILD LABOUR

• In combating child labour, it is important not only to focus on the victims, but also on their families to be successful in providing care.

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CHILD ABUSE

• In India, vocational training for young women has made them less vulnerable to child marriages, due to the increasing effect on family income.

• In our lobbying activities, working with change agents (community members promoting important child protection components among the other members of the community) proved effective: equipped with authority and their own personal experience, change agents have the power to convince their own community to respect the rights of children.

• Education on children’s rights in schools not only increases children’s resilience but the number of reported cases of child abuse as well.

CHILD TRAFFICKING

• The nature of child trafficking changes and becomes more entangled with migration; an example of this is child trafficking in the form of labour migration. ●• In the fight against child trafficking, offering vocational training has proved to be less successful. Interventions will therefore focus more on information, education and income-generating activities.

ANNUAL REPORT 2016 TERRE DES HOMMES

4. How have we been visible?

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4.1 Our story

Terre des Hommes can only exist by continuously working on its visibility. Individuals, companies and governments need to know what Terre des Hommes stands for and what we are doing. Only then can they decide if, when and how they will support Terre des Hommes.

The communication strategy of Terre des Hommes focuses on: • Increasing brand awareness; in doing so, we draw the attention of new and existing stakeholders; • Maintaining existing donors; with result-oriented communication, we increase the involvement of our stakeholders; • Impactful communication through innovative means of communication; in this way, we increase the impact of our campaigns and reach new audiences.

4.2 Campaigns

Emergency relief Syria

The war in Syria is the greatest humanitarian disaster of our time. One million children urgently need healthy food.

What were the results of this campaign?

On 5 October, Terre des Hommes sent an additional mailing to 51,700 donors to donate for the children in Syria. The mailing raised € 114,432, - in 2016.

Sexual exploitation of children in the Netherlands

In 2016, a campaign was launched to draw attention to sexual exploitation of children in the Netherlands by lover boys and their customers.

Mica

In May and June 2016, Terre des Hommes campaigned to draw attention to child labour in the Indian mica industry.

What were the results of this campaign?

Through use of online banners, digital abri’s, posters and advertisements in Metro, among other things, we called on the Dutch to sign a petition. 11,406 Dutch people responded to our call. The campaign caused a lot of traffic to the website: With 47,116 visitors, May 2016 was the best month since the Sweetie campaign in 2013. Facebook in particular proved an effective channel for the petition. Moreover, one of the largest mica producers, the Chinese company Kuncai, pledged a donation of € 500,000, - to Terre des Hommes. Finally, an international mica platform was established involving various stakeholders.

What were the results of this campaign?

A fundraising campaign with a duration of 3 weeks - from mid-November to early December – resulted in a huge reach of 3.7 million unique people and extremely high numbers of visitor on the website. November even generated a record number of 86,700 visitors. The campaign has led to 9,194 signed petitions that will be followed up with the aim of informing and fundraising (these results were not yet known at the time this annual report was issued). The campaign has yielded 63 direct online donations.

ANNUAL REPORT 2016 TERRE DES HOMMES

4.3 Means of communication

Terre Magazine

Through Terre Magazine we inform donors and involve them in the work of Terre des Hommes. The magazine is published three times a year, both in print and online. This year’s second issue was a special edition to mark the 50th anniversary of Terre des Hommes.

Circulation Terre Magazine 2016: 1: 67,000 copies 2: 75,000 copies 3: 76,000 copies

Newsletter

In 2016, Terre des Hommes had 55,978 newsletter subscribers. A newsletter was sent monthly.

Annual report and other reports

• Every year, Terre des Hommes devotes a lot of attention to its annual report to clearly account for its yearly activities to its constituencies. For its private donors, Terre des Hommes puts together a summary of the annual report, which we send digitally or in print, according to the donors’ wishes. In addition, we make a powerful video report in image and sound.

• Terre des Hommes regularly provides reports and program updates in accordance with the wishes of its other public audiences.

• For projects supported by the Dutch Postcode Lottery, we draw up a yearly progress report for each separate project. To report on government-funded projects we provide interim updates and annual reports.

Metro

Since April 2016, a branded content ad has been appearing weekly in Metro with a daily reach of approximately 1.3 million.

On the last Friday of every month we show our work in an extended section.

Free publicity

Website

The number of unique website visitors rose from an average of 26,089 unique visitors per month in 2015 to 35,709 unique visitors per month in 2016.

Social Media

In 2016 too, Terre des Hommes regularly made the news, for example in May an alarming report on child labour in mica mines in India received good coverage, being picked up by Radio 1 and the Reformatorisch Dagblad amongst others.

The Guardian and the Thomson Reuters Foundation also cover the topic at a later date.

The number of followers on social media rose to:

August brought a peak in media attention caused by the start of the Watch Nederland program. All national newspapers as well as RTL News and NOS Journaal devoted attention to the program, Radio 1, BNR and 538 all carried an interview with Terre des Hommes.

39,176 followers

Sweetie too kept triggering media attention: In October, several media including Radio 1, BNR and RTL News picked up the story that the Dutch police cannot deploy Sweetie 2.0 as evidence for prosecution.

In December, however, there is more news when the Dutch Lower House approved an amendment that allows the deployment of Sweetie in prosecution after all.

This breakthrough is largely due to the lobbying activity of Terre des Hommes.

(2015: 22,013)

1,250 followers (2015: 897)

4,899 followers (2015: 4,003)

1,322 connections (2015: 933)

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In addition, there has been regular media attention for Dutch men abusing children abroad (Bas R in Cambodia), the work of Watch teams in Asia that track down child sex tourists, the views of Managing Director Albert Jaap van Santbrink on international adoption and the photo exhibition by Pim Ras.

Direct Mail In 2016, a total of six direct mailings were sent to our constituencies: three times through Terre Magazine (partly with a gift request), a letter of thanks with four coupons, an emergency relief mailing for Syria and a fundraising mailing to get child brides back to school. The total revenue from direct mailings in 2016 add up to € 550,719, -.

4.4 Events 50th anniversary

Terre des Hommes marked her 50th anniversary with two substantive meetings: one for business relations and sponsors (including Nobel Prize winner Kailash Satyarthi) and the other for volunteers and private donors.

Inheritance

Two more meetings took place in Hortus, Leiden and the Toverlantaarn Museum in Zeist on legacy donations to Terre des Hommes.

Photo exhibition Pim Ras

Over 4,000 people visited the photo exhibition by photographer Pim Ras about the violations of children’s rights

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ANNUAL REPORT 2016 TERRE DES HOMMES

during the Olympic Games in Rio de Janeiro. The exhibition also attracted extensive media attention: 13 items/ articles in several national print media and on radio stations, including a spread (2 full pages) in Algemeen Dagblad which reached approximately 1.5 million readers.

4.5 Fundraising What choices do we make between income sources?

We invest most in the private market, the business market, our stores and the Dutch Postcode Lottery. In addition, we are committed to cooperation with other parties at strategic level to obtain subsidies.

Private promotions

Photo exhibition Shelter

Female photographer Alex Koeleman has compiled an impressive exhibition of black and white photos featuring Cambodian and Philippine girls who have been sexually exploited. The girls wear masks for safety and privacy reasons.

Koeleman deliberately chose festive masks as a symbol for a new, better future. At the opening in the Humanity House in The Hague, Director Albert Jaap gave an opening speech, while fragments of the film ‘Lilet Never Happened’ were shown, supplemented by a discussion with project leader Hans Guijt about the approach to sexual exploitation of children in Asia.

Promotions for the private market are often lucrative including door-to-door marketing, fundraising at events (often with VR experience), upgrading donors (motivating donors to increase their gift) and win back actions (retrieving donors who have stopped).

Business market

We increasingly work according to the Mica campaign methodology: By means of thorough research, we expose problems in a production chain, and then we seek cooperation with companies to tackle child exploitation together.

For example, we are in the process of eradicating child exploitation from the mica production chain, in collaboration with mica producer Kuncai. Here, Terre des Hommes combines its knowledge of children’s rights and experience in liberating children from exploitation situations with knowledge of the production chain and co-financing provided by Kuncai. In the future, we intend to apply this methodology in other sectors too. We allocate a considerable amount of money and manpower to achieve this.

Stores

Each consecutive year, the stores generate a significant contribution. They constitute an accessible, regional way of contributing to the fundraising goal.

Moreover, the efforts of more than 2,000 volunteers allow us to draw attention to

our work among our constituencies in a simple manner.

Dutch Postcode Lottery

We have been working together with the Dutch Postcode Lottery for more than twenty years. Within certain limits, we can allocate the money as we wish. This is one of the reasons why we are able to intensify the fight against child exploitation substantially.

What are our choices based on?

Our choices are based on the return on investment (ROI). For each fundraising resource we make a calculation: how much does it cost us and how much do we get in return?

Throughout 2016, we deployed the following fundraising resources:

Direct dialogue (events) and VR

In 2016, 3,923 donors were recruited through door-to-door recruitment with an average annual commitment of approximately € 94, -. The VR Experience was used for fundraising at trade shows, festivals, fairs and on the street yielding 1,696 new donors with an average annual commitment of € 81.45.

Telemarketing

• In 2016 we conducted a relatively large so-called winback campaign. The idea of the campaign was to call former donors of Terre des Hommes and persuade them to resume their support.

In doing so, 520 donors were recruited with an average annual value of € 59, -.

• As many as 1,031 donors have increased their regular annual contribution by an average of € 36.57 in response to a phone call.

• We called people who actively support us with single donations asking them to support us with a monthly contribution. In this way, 216 people decided to make fixed monthly donations adding up to a yearly contribution of € 60.26 on average.

ANNUAL REPORT 2016 TERRE DES HOMMES

Terre des Hommes shops

Through local working groups, our shops generate a recurring source of income every year (€ 1,274,127 in 2016) while promoting local and regional awareness.

Shop activities in 2016: • Three new shops were opened in Gouda (February), Roosendaal (April) and Heerlen (May); • Four shops - in Deventer, Leeuwarden, Zoetermeer and Zwolle - were restyled and furnished according to our latest corporate identity;

● • Four shops moved to another location: Arnhem, Groningen, Rotterdam and Zundert; ● • Unfortunately, two shops have disappeared: Kampen and Heerlen. Despite an enthusiastic team of volunteers, Kampen did not succeed in amply covering the costs after three years; Heerlen in turn lacked the required number of volunteers to keep the shop running; ● • Leeuwarden and Wageningen both celebrated both their 10th anniversary while our Amsterdam shop celebrated its 5th anniversary.

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• As in previous years, various events were organised by the shops and the associated working groups in 2016, including fashion shows, a large art auction in Den Bosch, flea markets and Christmas fairs, a TOP2000 café in Tilburg with various musicians performing free of charge for Terre des Hommes and a village tour (by bike) across Walcheren.

4.6 Who supports us with our work?

CHILDREN

DONORS

DUTCH POSTCODE LOTTERY

JUSTICE & POLICE

COMPANIES

LOCAL PARTNERS GENERAL PUBLIC/SOCIETY

NATIONAL AND INTERNATIONAL GOVERNMENTS COMMUNITIES PRESS INSTITUTIONAL FUNDS

Press

We regularly made the news throughout 2016. We informed the press about new initiatives and were subsequently approached to explain the new programs or views in the media.

Local program partners

This year, the number of program partners has been reduced to 69 consortia, in which 170 unique partners actively participate. By means of training and other forms of knowledge transfer, we increase the quality of our partnerships. In this way we build capacity, which constantly increases the quality of our programs.

(Major) donors and donations

Our work is supported by nearly 70,000 donors. We involve them in different ways and inform them on the results achieved.

AMBASSADORS

In November, the annual satisfaction survey was sent to a total of 12,000 donors.

The questionnaire was completed by 682 donors.

The findings include: • Satisfaction with Terre des Hommes rose to 8.0 in 2016 (from 7.7 in 2015).

• The vast majority of donors do not appreciate being called by telephone or written thanks.

• Donors attach great importance to a prompt and correct processing of questions.

• Invitations to exhibitions and films related to the work of Terre des Hommes are more appreciated than donor meetings.

• More than half of the donors believe it is very important that Terre des Hommes is regularly visible in the media.

VOLUNTEERS

TERRE DES HOMMES STAFF

• Through similar surveys, we not only involve donors in our work but it also allows us to adapt and improve our methods and resources. We attach great importance to the feedback of our donors.

Volunteers

Terre des Hommes works together with a growing number of volunteers. This year we were supported by over 2,000 volunteers. Most of them work in one of our stores. They are kept informed of the initiatives of Terre des Hommes on a weekly basis.

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ANNUAL REPORT 2016 TERRE DES HOMMES

The new Terre des Hommes ambassadors are:

Daniel Montero Real ballet dancer at the National Ballet

Roelof Hemmen journalist at BNR News Radio

Dolores Leeuwin former host of Klokhuis a Dutch TV show

Brooke Newman Ballet dancer at Introdans

Ambassadors

This year we started recruiting new ambassadors to increase media support for Terre des Hommes and to promote our activities. We are proud that several new ambassadors are willing to support our work. It is important that they be kept informed of our programs and how we operate so they can spread the word effectively.

Dutch Postcode Lottery

The Dutch Postcode Lottery has supported Terre des Hommes for 21 years already. Thanks to the annual support, Terre des Hommes has carried out large-scale and groundbreaking projects that give a strong impetus to the fight against child exploitation.

In 2016, we worked together towards: The completion of the WATCH Project • tracking down child sex tourists in five Asian countries; • professionalising local detection teams; • the breakthrough with arresting child sex tourists from Australia, France, Denmark, the US and Saudi Arabia.

Further development of Sweetie into Sweetie 2.0 • a report on differences in legislation regarding the use of Sweetie as bait; ● • identifying online child abusers; ● • deployment of innovative artificial intelligence; ● • research into the deterrent effect of sending alerts.

Nelson Munyiri the first international ambassador to Africa

Roelof has already been involved in the WATCH Nederland campaign, while Daniel and Nelson have performed during the celebration of our 50th anniversary.

Brooke in turn was involved in the production of Terre Magazine in November 2016.

Dolores will become active in 2017.

Terre des Hommes handles the communication regarding projects that are supported by the Dutch Postcode Lottery with precaution, while always giving this committed stakeholder all the credits for their crucial contribution.

financially, such as XS4ALL and WebIQ, which support our Sweetie and Watch Nederland programs. In turn, several translators assist Terre des Hommes with reduced rates or by offering their efforts for free.

Companies and Foundations

Foreign Affairs and local authorities

In 2016, the GSRD Foundation, the Dioraphte Foundation and the ASML Foundation supported our work against the worst forms of child labour in Bangladesh. The Dioraphte Foundation also supported our fight against child labour in Uganda. QolorTech and the Chinese companies Kuncai and Fast Forward supported our fight against child labour in the mica mines.

In addition, we were pleased to welcome the initiatives made by the Boer Group| Curitas, Euro Pool Group, Coop, the Frits Schrouff Foundation, the Johanna Donk-Grote Stichting, the New Future Fund, Stichting 10 September and Stichting Flexi Plan. Through program updates, consultations and visits to the programs, we keep them informed of the projects they support.

There are several companies who support Terre des Hommes in kind rather than

The alliances that we participate in, which carry out large-scale programs with government support, inform the authorities concerned through interim evaluations and reports.

Police and Justice

Regarding the Watch Nederland program, we maintain direct contacts with the National Police. We investigate reports of suspected lover boy activities. In case of serious reports, we will pass on the information to the National Police’s human trafficking specialists.

In countries like the Philippines too, we maintain contacts with the police and justice. Through informal consultation, we stay in touch with people at the Public Prosecutor’s Office. We include this information in defining the policies for our programs and in lobbying the government.

ANNUAL REPORT 2016 TERRE DES HOMMES

Throughout 2016, our present ambassadors made their own contributions: • as the face of the mica campaign (Thekla Reuten - actress); • at performances of our stores and the Terre des Hommes gala (3JS - band).

Thekla Reuten actress

Fellow organisations

3JS band

We meet fellow NGOs in forums and work closely together in a number of alliances. Through regular contact at management level, we stay informed of each other’s activities which allows us to identify opportunities in time for mutual reinforcement.

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ANNUAL REPORT 2016 TERRE DES HOMMES

5. How are we organised?

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TDHIF is active in Canada, Denmark, Switzerland, Italy, Germany, The Netherlands, Spain, France and Luxembourg.

Every day, our 96 employees worldwide and over 2,000 volunteers are committed to eliminating child exploitation around the world. Below, we will elaborate on how this is organised and how quality and safety are safeguarded.

5.1 Organisational structure and staff Terre des Hommes Netherlands is an independent foundation with headquarters in The Hague and two regional offices in Nairobi and Phnom Penh. Moreover, there are 45 Terre des Hommes stores in the Netherlands that operate as independent foundations. The proceeds from the shops are to the benefit of Stichting Terre des Hommes Netherlands.

Terre des Hommes Netherlands is member of the Terre des Hommes International Federation (TDHIF) which unites 11 independent Terre des Hommes country organisations. Together, they operate in 69 countries around the world with a total budget of over â‚Ź 155 million *. Terre des Hommes Netherlands is very active in several working groups within the international organisation. * 2015 figure

Offices TDHIF

The Management Team - led by the Managing Director - is the body responsible for the management of the foundation. As such, the MT is responsible for the strategy, the policy and the achievement of the goals as laid down in the strategic multiannual plan and the annual plans. This is done under the watchful eye of the Supervisory Board. After the departure of the Director of Finance & ICT during the course of 2016, the decision was made to let go of the two-member Board in view of the size of the organisation. This position is now included in the management’s responsibilities.

Countries in which TDHIF is active

Management Team

The management team consists of the Managing Director, the Head of Finance, the Head of Marketing and Communication and the Head of Programs.

ANNUAL REPORT 2016 TERRE DES HOMMES

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Management Team

MT Albert Jaap van Santbrink Managing Director

MT Carel Kok Managing Director (ad interim*)

MT Liesbeth Zonneveld Head of Programs

* as of 13 March 2017, Mr. Carel Kok has been appointed to temporarily replace Mr. Van Santbrink due to illness

Change in organisational structure

By the end of 2016 it was announced that Terre des Hommes will rearrange its internal organisation at the office in The Hague, making several positions redundant. This reorganisation was necessary to allow more spending on our programs. In recent years, the number of employees has grown, while income has not increased structurally. Moreover, substantial investments were made in 2015 and 2016 to improve the organisational structure and its efficiency, in monitoring of programs, in CRM and financial administration, requiring less staff. On top of that, a number of country offices in the regions, with a limited portfolio, will be closed during the first quarter of 2017.

The programs involved will be managed from the regional offices.

Bad news

By the end of 2016 we learned that our Managing Director Albert Jaap van Santbrink will be absent for a longer period due to illness. He has meanwhile been replaced by an interim director. We all hope Albert Jaap will soon recover and resume his work at Terre des Hommes.

Asian Region African Region European Region

MT Sander Hanenberg Head of Marketing & Communication

MT Sacha van Ulft* Head of Finance & ICT * As of February 1st 2017, Sacha van Ulft has been appointed for this function.

Employees

Key figures 2016

Head office

Regions

Aantal FTE’s ultimo 2016 34,5 (2015: 32,1)

58 (2015: 76)

Aantal medewerkers ultimo 2016

58 (2015: 76)

Volunteers

All 45 Terre des Hommes shops are run by a total of 2,064 volunteers. Also, in organizing our 50th anniversary we have worked closely together with a volunteer who has charted the history of Terre des Hommes.

Interns

With the use of interns, specific subjects receive extra attention. Our contribution is to offer them adequate guidance and an educational environment. In 2016 we have provided the following internships: Finance Department Research on knowledge sharing and safeguarding information in NGOs, both within the organisation and with external stakeholders. What strategies and resources are suitable to this end?

38,0 (2015: 37)

Programs Department Research on International Corporate Social Responsibility and Child Labour.

Programs Department assistance to the emergency relief coordinator.

Staff ratio

Terre des Hommes employs more women than men: 40% male and 60% female.

Within the organisation, there is a great diversity of nationalities as we work with local staff in the regions. A total of 65% are non-Dutch nationals.

Sick leave

In 2016, the sick leave rate at headquarters was 3.5% (2015: 3.27%). Short absence, like previous years, was well below 1%. As before, absenteeism assistance was carried out by Human Capital Care.

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5.2 Safety and complaint management Whistle-blower scheme

Terre des Hommes has implemented a whistle-blower procedure which allows for staff and third parties to report any (serious) abuse related to Terre des Hommes. In 2016, no new notifications were received regarding the operation of project partners in one of the countries where Terre des Hommes operates.

Confidential advisor

Terre des Hommes disposes of an internal confidential advisor who was consulted eleven times by staff members throughout 2016. Employees have expressed their wish to appoint an additional external advisor as well as a confidential advisor in each region. The procedure to this effect will be started in 2017.

Complaints

Terre des Hommes has established a complaints procedure for third parties.

Our definition of a complaint: ‘Any verbal or written expression of dissatisfaction by an institution, company or individual, addressed to Terre des Hommes, holding a complaint with regard to the policy or conduct of Terre des Hommes, and is designated by third party as a complaint.’

Throughout 2016, 69 complaints were filed (2015: 28).

The increase in the number of complaints can be attributed to an adjustment of the complaints handling procedure. In previous years, it was checked whether the complainant wanted to file the dissatisfaction as an official complaint in our system. During 2015 it was decided that any notification should be directly designated as official complaint. Thus, all questions are addressed seriously and with the same attention.

In 2016 we received the following complaints: • 11 complaints concerned the shops; • 22 complaints related to the marketing and communication activities of Terre des Hommes; • 7 complaints concerned the level of salary of the Managing Director; • 14 complaints related to debt collection activities; • 2 complaints were received from a third party about the functioning of program partners in a country where Terre des Hommes operates. These complaints have been investigated by an independent external party. One complaint has meanwhile been reported on. There was no evidence of any irregularities regarding the functioning of our project partners. Terre des Hommes has been unsuccessful in contacting this complainant. The other complaint is still under review; • 6 complaints about our areas of concern; • 7 complaints regarding postal and mail addresses.

Resolution 64 complaints were resolved to the satisfaction of the complainants while 5 complainants remained unsatisfied.

Fraud

In 2016, no cases of fraud were established at Terre des Hommes.

Child Safeguarding Policy

Our work is all about children’s safety. Therefore, our ‘child safeguarding’ measures are an essential part of our work. Terre des Hommes has adopted a Child Safeguarding Policy with an underlying code of conduct to ensure that no child is adversely affected by us and employees of our partners, volunteers or affiliated partners such as consultants and journalists.

Three child safeguarding focal points within the organisation ensure that all employees and partners are aware of this policy and its implementation. This year, the focus was on improving child safeguarding structures and staff capacity.

All important documents were updated and new staff was trained. Two cases relating to child safeguarding were re-

ported, both of which have been resolved satisfactorily.

In 2016, Terre des Hommes Netherlands, as a member of the Terre des Hommes International Federation, was awarded a Level 1 certification for the protection of children after evaluation by the global child protection network Keeping Children Safe.

5.3 Quality assurance Terre des Hommes is one of the first organisations in the Netherlands to be certified for ISO 9001:2015, the latest version of the ISO 9001 standard. One of the most important changes in the new version of the standard is the question whether the organisation involved fully understands the context in which its work is done, whether its strategy and policy are adjusted accordingly, whether risks can be identified and - if so - to what degree control measures are implemented. An organisation is expected to look at both internal and external factors that may affect the quality of its work.

To qualify for this certification, Terre des Hommes has invested in setting up a high-grade quality management system. This system captures the processes which allow Terre des Hommes to continuously keep an eye on its services.

In case something does go wrong, tight protocols exist to identify the error, detect the cause and put in place improvement measures. In this way, we will continue to improve.

Management involvement

Another important focus in the certification is the involvement of management.

Here too, Terre des Hommes scores well.

Management takes responsibility for the effectiveness of the quality management system and is closely involved in the quality policy and its integration into the organisation. At any level, the organisation has established measurable and relevant current quality goals, which are communicated, recorded and monitored. Employees at the head office and in the regions have been trained with the new quality system as a starting point.

ANNUAL REPORT 2016 TERRE DES HOMMES

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5.4 Risk management Strategy

Risks may arise in a variety of areas: for example, in our organisation in the Netherlands and in the choices we make at our regional and country offices. Each year, we make estimates of the likelihood of occurrence for each individual risk as well as the impact it will have on the organisation as part of our annual planning cycle. In the intervening period, this risk matrix is discussed and updated on a regular basis. If necessary, additional actions are taken to control these risks. The risk assessment, including the actions to be taken, is discussed in the Supervisory Board at least once a year. Dependence on public funding and private donors constitute the main risks. For both, the effectiveness of the implementation of our projects is essential. Money must be spent well and effectively. Based on our ‘Theory of Change’, we select projects that will contribute to our goals in a lasting and sustainably way. The increased competition our thrift shops experience is a less significant risk but should not be neglected either. Having calculated how much the expected loss might be we believe that our continuity reserve, in combination with various other measures we will take, is sufficient to absorb the worst setbacks. The continuity reserve is currently in line with our requirements, and is well within the maximum set by the CBF.

Operational

The operational risks, to a certain extent, concern the people we work with. Our own employees are governed by a code of conduct that determines the freedom of policy. There are established directives against corruption, bribery and

fraud. This code of conduct contains a procedure on how to deal with violations of the guidelines. A whistleblower scheme is in force for those cases where a Terre des Hommes employee is suspected of improper use of money or other malpractices. In 2016, this whistleblower scheme was not called upon.

Additionally, Terre des Hommes may receive negative publicity either by behaviour of our own people or by facts coming from outside our organisation.

Although this may not seem likely to occur, the impact can be huge. For those cases where publicity threatens to create a wrong image about Terre des Hommes, a media protocol has been drawn up and spokesmen have been appointed. These are trained periodically.

To monitor the effectiveness of our programs, Terre des Hommes completely rolled out the PMEasy software suite in 2016.

This allows for the quantitative progress of all projects to be reported quarterly and, if necessary, adjusted.

Financial

Funds received that cannot yet be spent on goals are distributed across different banks and deposits. The policy’s starting point is certainty and availability. The rate of return is of secondary importance.

Reporting

The previously mentioned PMEasy software reports on the progress of all projects. For financial reporting purposes, Exact was introduced in 2016.

The combination of the two, along with Salesforce software for marketing and donor administration, offers a solid basis

for executing processes efficiently and in a reliable way. All applications are “cloud-based” thus eliminating the risk of missing backups and continuity.

5.5 Integrity In 2016, KPMG investigated the integrity of the organisation. All employees, both in the Netherlands and in the regional offices, have been interviewed. The organisation has then been mapped based on eight cultural elements (soft controls).

KPMG concluded that our employees are ‘highly engaged’. When it comes to the ‘culture of addressing issues’ there is room for improvement.

5.6 ICT In 2016, we took the final steps towards optimising the automation of our project management systems. Our partners, country offices, regional offices and head office are all connected to these systems and all report in the same way which allows us to maintain an overview and, if necessary, make necessary adjustments.

In addition, we made the shift from managing a variety of projects to just five programs in 2016. We have merged projects into programs by theme to create more synergies and increase the impact of our work. This also benefits the management of our work.

Throughout 2016, we progressed further towards a paperless office: we all work in the cloud. This has greatly improved communication between country offices, regional offices and head office.

ANNUAL REPORT 2016 TERRE DES HOMMES

6. Accountability Supervisory Board

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Terre des Hommes is in possession of the CBF quality mark, a certificate of approval issued by the Central Fundraising Bureau. Terre des Hommes also works with a Supervisory Board, which is led by Maarten Koopman since 2016.

Supervisory Board 2016

In accordance with the articles of association, the Supervisory Board consists of at least 5 persons who are appointed for a period of 4 years. After expiration of this period, members may be reappointed up to 2 times for a maximum of 4 years.

In the 2016 financial year, Rob Ruijter (Chairman) and Paul Nobelen (Vice-Chairman) both resigned as of March 23 after expiry of their last term.

On April 8, 2016 Maarten Koopman was appointed as a member and Chairman of the Supervisory Board.

At present, the Supervisory Board consists of:

Maarten Koopman - Chairman, Remuneration Committee Managing Partner at DIF appointed in: 2016- current term ends in: 2028

DaniĂŤlle Smits van Waesberghe - Member Marketing and communication Consultant appointed in: 2005 - current term ends in: 2017

Arent van Wassenaer van Catwijck - Audit Commission (member) Owner The Faithful Goose appointed in: 2009 - current term ends in: 2021

Pim Oomens - Audit Commission (Chairman) CFO and member Board of Directors Stork Technical Services Holding BV appointed in: 2012 - current term ends in: 2024

Mieke van Laarhoven - Member Attorney van Laarhoven Legal Service appointed in: 2013 - current term ends in: 2025

RenĂŠe van Kessel-Hagesteijn - Remuneration Commission (member) Director MaGW, NWO, Business Director (NIHC) appointed in: 2013 - current term ends in: 2025

ANNUAL REPORT 2016 TERRE DES HOMMES

Policy assessment

The Supervisory Board (SB) is the highest supervisory organ of Terre des Hommes Netherlands Foundation. The SB establishes the policies pursued by management and continuously assesses their implementation. The SB also acts as sparring partner for the statutory Managing Director and the Management Team on a range of issues. In 2016, the Managing Director/Management Team reported monthly to the SB and arranged four meetings throughout last year.

Compensation

The members of the SB of Terre des Hommes did not receive an allowance in 2016, not even for any travelling expenses.

They do not have business relations with Terre des Hommes. Two SB members visited our location in Nairobi this year.

The visit took place entirely at their own expense.

What did the Supervisory Board do, discuss and approve in 2016?

• Four meetings: 23 March, 15 June, 12 September and 13 December; • Two financial audit meetings: 4 April and 7 September; • Approved the annual report and annual account 2015 and reviewed the auditor’s report; • Approved the annual plan 2017-03-20.

PWC has carried out the audit for the financial year 2015 and reported its findings to the Audit Commission. In the autumn, the interim audit for the past fiscal year took place; • Approved the severance agreement of the Director of Finance & ICT; • Approved reorganisation.

The past fiscal year has been an eventful year for Terre des Hommes in several respects. After the management, in close consultation and with the consent of the Supervisory Board, had decided to reduce the overhead costs at home and abroad to the average level of the previous five years, a major reorganisation was carried out in the last quarter of the previous financial year. At the end of December, shocking news reached us that our Director Albert Jaap of Santbrink was affected by a serious illness. Meanwhile, Albert Jaap has entered an intensive treatment with his characteristically combative, positive and optimistic spirit.

On behalf of all employees and other stakeholders we wish Albert Jaap and his family a lot of strength in this fight.

As Albert Jaap is expected to focus entirely on his treatment for most of 2017, the Supervisory Board has decided to fill in the vacancy. As of March 13, 2017, Carel Kok was appointed as statutory Director for a limited period. We are very confident that Carel is the right man to lead Terre des Hommes in this situation.

Word of thanks

The Supervisory Board would like to thank the management, all employees at home and abroad, our volunteers, donors, sponsors, institutional donors, the Dutch Postcode Lottery and all Terre des Hommes ambassadors for their enormous and dedicated commitment and results during the past year.

On behalf of the Supervisory Board of Terre des Hommes Netherlands Foundation Maarten Koopman - Chairman

The main topics and events that were discussed this year: • the departure and follow-up of the Director of Finance & ICT (Irvin Wekking) and the related adjustment of the management structure (from twomember management to one Director) • reorganisation aimed at substantially reducing overhead costs • recruitment of the management position due to the fact that A.J. Van Santbrink fell seriously ill and was forced to quit work as of early December.

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7. Financial means

44

Competition within the world of NGOs has forced us to take a critical look at the way we spend our money at all times. As soon as we see room for improvement, we will act on it.

We are constantly looking for ways to innovate and seek to create more synergy and increase the impact of our work through our new program approach. By monitoring the needs of the programs in the regions and assessing the effectiveness of our programs, we allocate our resources as efficiently as possible.

Cost effectiveness of programs 2016 The table below offers insight into the cost effectiveness of interventions by Terre des Hommes with respect to certain output indicators. For three of these indicators, the costs have been compared with the number of beneficiaries, resulting in a cost price per beneficiary.

Indicator

Region

Costs

Children supported

Costs/result

# children offered shelter

# children receiving legal assistance

Asia Africa

2,462,407 806,676

49,610 7,413

49.64 108.82

Asia Africa

369,978 32,047

8,719 531

42.43 60.35

# children participating in educational activities

Asia Africa

1,644,817 275,559

918,338 82,167

1.79 3.35

Based on these data it can be concluded that the implementation of programs in Africa is much more costly than the implementation of programs in Asia. In Africa, we execute fewer programs, thus reaching fewer children while the number of staff is practically the same as in Asia. By the end of 2016 we therefore decided to close two country offices in Africa to reduce the cost on this continent.

ANNUAL REPORT 2016 TERRE DES HOMMES

45

46

ANNUAL REPORT 2016 TERRE DES HOMMES

Annual account 2016 Balance sheet 31 December 2016 31 December 2015 ASSETS 01. Tangible fixed assets

01

1,335,323

1,532,263

01. Tangible fixed assets objective

01

-

133,307

02. Financial fixed assets

02

100,000

-

03. Receivables

03

4,671,359

5,310,339

04. Cash and cash equivalents

04

14,752,142

13,643,359

Total assets

20,858,824

20,619,268

LIABILITIES 05. Reserves

05

8,359,736

8,175,057

06. Funds

06

672,303

897,990

07. Debts

07

Long-term debts 2 years

12,000

38,543

Long-term debts 3 years

-

755,000

Short-term debts

11,814,785

10,752,678

Total liabilities

20,858,824

20,619,268

All amounts in this chapter are in euros.

ANNUAL REPORT 2016 TERRE DES HOMMES

Statement of income and expenditure

2016

Budget 2016

2015

8,669,370

11,681,800

11,970,178

INCOME Income from own fundraising

08

Income from joint campaigns

09

7,212

-

636,632

Income from third-party campaigns

10

2,279,354

2,305,000

6,164,155

Government grants

11

10,255,740

7,980,000

6,222,077

Interest income and income from investments 12

230,173

100,000

240,540

13

51,562

30,000

99,659

Total income

Other income and liabilities

21,493,411

22,096,800

25,333,241

EXPENDITURE SPENT ON OBJECTIVES Structural aid

14

10,229,341

12,383,500

14,351,961

Emergency aid and rehabilitation

15

3,777,231

2,200,000

3,840,614

organisation assistance

-

2,669,079

3,061,678

2,609,964

Awareness raising and education

-

1,266,442

1,174,710

1,199,136

Total spent on objectives

17,942,093

18,819,888

22,001,675

2,149,631

1,921,049

2,037,144

Implementation costs of own

FUNDRAISING COSTS Cost of own fundraising

18

Cost of joint fundraising

18

114,063

114,541

115,117

Cost of third-party fundraising

18

152,670

184,693

165,921

Cots of obtaining government grants

18

176,473

125,779

119,529

Cost of investment

18

25,422

56,013

30,931

Total fundraising costs

2,618,259

2,402,075

2,468,642

MANAGEMENT AND ADMINISTRATION Costs of management and administration

996,202

818,214

893,885

Total expenditure

21,556,555

22,040,177

25,364,202

SURPLUS/DEFICIT -63,143 56,623 -30,961

Result allocation

2016

2015

SURPLUS/DEFICIT IS ADDED TO/DEDUCTED FROM: Earmarked funds

-247,823

332,317

Reserve for funding tangible fixed assets objectives

-133,306

-121,262

Reserve available for objectives

317,986

-242,016

SURPLUS/DEFICIT -63,143 -30,961

47

48

ANNUAL REPORT 2016 TERRE DES HOMMES

General explanation and principles of valuation and result determination General

The annual account is prepared in accordance with Directive 650, fundraising institutions.

Structure of the reporting unit Terre des Hommes Netherlands foundation

The Terre des Hommes Netherlands foundation aims to provide concrete and direct aid to children in need, in their own environment, anywhere in the world without differentiating on the basis of race, belief or political allegiance. For carrying out its activities, the Terre des Hommes Netherlands foundation (after this: Terre des Hommes) has access to several offices and legal entities. The annual figures from the entities mentioned below are included in the consolidated annual account. Mutual receivables and debts are eliminated.

Head office

The head office and statutory address of Terre des Hommes is established in the Zoutmanstraat in The Hague.

Terre des Hommes is registered under number 41149287 at the Chambre of Commerce.

Regional offices

In the regional offices in South East Asia and East Africa, Terre des Hommes has regional representatives who manage a local staff force. The offices are registered locally in accordance with local legislation in each country.

In 2016, the decision was made to close a number of country offices, viz. in Tanzania, Uganda, Indonesia and Ethiopia. The closures will be effected in the course of 2017.

Terre des Hommes is in fact spent on the Terre des Hommes objective.

Principles of valuation of assets and liabilities Principles of valuation

The principles formulated relate to the annual accounts as a whole. The principles of valuation have not changed compared to last year unless stated otherwise.

Consolidation

The annual account comprises the financial data of the Terre des Hommes Foundation and the independent legal entities that go public under one name and, as such, solicit public charity as well as the entities over which they can exercise a dominant control.

The annual account includes the financial data of the Terre des Hommes shops which are an integral part of the Terre des Hommes Foundation. At the end of 2016 (as in 2015), the stores are a separate legal entity that are incorporated in this consolidated annual account. Given the size of these special legal entities, no separate single annual account has been prepared for the Terre des Hommes Foundation. This is equivalent to the situation at the end of 2015.

The results of the shops are disclosed in the attachments of the annual report. At the end of 2016 the balance total of the shops is € 1,100,927 and consists mostly of liquid assets.

Foreign currency

In 2004, we founded Nelandeco to launch micro-loan programs in Sri Lanka with the project partners involved having a repayment obligation. This legal entity falls fully within the responsibility of Terre des Hommes. Nelandeco is registered in Sri Lanka as a Limited Company under the 1982 Companies Act, No.17. The liquidation of Nelandeco was started in 2013 because the micro-loan program has been transferred to local project partners. The liquidation process has been slow due to Sri Lanka’s bureaucracy. In the last quarter of 2016, the liquidation was finalised, the remaining positive balance has been spent on a project in Sri Lanka.

Receivables, debts and obligations in foreign currency are converted at the exchange rate applicable on the balance sheet date. The costs and assets in foreign currency are converted at average annual exchange rates. The exchange rate differences arising from the conversion are included in the statement of income and expenditure. Transactions in foreign currency during the reporting period are included in the annual accounts at the exchange rate at completion. The annual accounts of the regional offices are in foreign currency and are converted at the valid exchange rates at date of balance in order to include these in the annual account. The exchange rate differences across the opening and closing capital and across changes in capital during the course of the financial year are included in the statement of income and expenditure.

Volunteer groups

Tangible fixed assets

Nelandeco

Supporting the fundraising and awareness-raising campaigns of Terre des Hommes in 2016, 50 (2015: 52) volunteer groups were working in the Netherlands on behalf of and reporting to Terre des Hommes. Of these volunteer groups, 45 take the legal form of a foundation (2015: 45), 5 take the legal entity of an association (2015: 6) and 1 volunteer group is working as a support point (2015: 1); these are volunteer groups without a legal entity. Agreements (protocols) have been signed with all of these groups to ensure that income raised on behalf of

Tangible fixed assets are estimated at the cost of acquisition minus linear calculated depreciations based on the economic life. The residual value of the fixed assets is set at nil. The following depreciation periods apply: • computer equipment etc.

3 years • vehicles 4 years • office fittings and fixtures

5 years • real estate 40 years

ANNUAL REPORT 2016 TERRE DES HOMMES

At every balance date, the Foundation assesses whether there are indications that a fixed asset might be susceptible to an extraordinary depreciation. In case such indications are present, the realisable value of the asset is determined. An extraordinary depreciation is when the balance sheet value of an asset is higher than the realisable value; the realisable value is the highest of the income value and the indirect market value.

Tangible fixed assets to achieve objective The tangible fixed assets used in the context of the objective are depreciated as follows: • hospital ships: 10 years In 2016, the foundation took the hospital ship out of operation and depreciated it to nil.

Financial instruments

Financial instruments comprise trade and other receivables, cash, loans and other financial obligations, trade debts and other items to be paid. Financial instruments are initially processed at fair value. Following initial inclusions, financial instruments are valued at the amortised cost price using the effective interest method.

Cash and cash equivalents Cash and cash equivalents include cash, bank balances and demand deposits with a term shorter than twelve months.

Cash and cash equivalents are valued against face value. The cash and cash equivalents are free to use by the legal body.

Financial fixed assets Financial fixed assets (loans) are valued at amortised cost price minus exceptional impairment losses. The Foundation assesses at balance sheet date whether there are indications that a fixed asset may be impaired. If such indications are present, the recoverable amount of the asset is determined.

An impairment loss refers to the book value of one that is actively higher than the realizable value. The realizable value is the highest of the market value and the bookvalue. There are no indications of impairment on the financial fixed assets.

Current assets Stocks Trade stocks held on the balance sheet (for example by volunteer groups) and other stocks such as welcome gifts for new donors are not included on the balance sheet. Instead they are charged against the profit in the year of acquisition.

Receivables Receivables are valued at the amortised cost price.

49

to achieve the objective is included in the earmarked reserve of tangible fixed assets to achieve the objective and in the earmarked reserve of financial fixed assets to achieve the objective.

Earmarked funds Earmarked funds are reserves that consist of funds collected or obtained for that purpose, which serve to finance long-range or future project activities. Withdrawals from the earmarked funds are based on commitments made in the financial year concened, related to the fund. Allocations to earmarked funds take place when funds are received for a certain project or aid program, which will be used after the current financial year.

Debts Long-term debts are valued at first incorporation at real value.

Transaction costs that can be attributed directly to acquiring the debts are included in the value at first incorporation. After first incorporation, debts are valued at amortised cost price: the received amount, taking in to account premium or discount, minus transaction cost.

Principles of result determination

Income and expenditure are in principle allocated to the period to which they relate.

Income

Fixed contributions, donations from campaigns, corporate donations, donations from volunteer groups and other income from volunteer groups.

This income is accounted for in the year in which it was received.

Corporate donations for specific projects Based on the matching principle, corporate donations for specific projects are accounted for in the year in which the expenditure on the project in question is accounted for.

Legacies Income from legacies is accounted for based on the (preliminary or established) statement of assets known to date. Provisional payments in the form of advance payments are accounted for as income from legacies in the financial year in which they are received unless already accounted for as income.

Sales of goods (Terre des Hommes shops) Income from the sale of goods is accounted for in the year in which the actual sale was completed.

Liabilities

Cooperating Aid Organisations Income from Cooperating Aid Organisations (SHO) is accounted for in the year in which it is received.

Earmarked reserves of tangible/financial assets to achieve the objective Equity recorded under assets which is used directly and in full

Lotteries Receipts and recoverable net income from lotteries are accounted for as revenue in the relevant fiscal year. Amounts

50

ANNUAL REPORT 2016 TERRE DES HOMMES

still due at the date of the balance sheet are included as receivables on the balance sheet.

Grants Income from grants is allocated in proportion to the progress of the activities to which the grant is credited.

Results from investments Both realised and unrealised exchange rate results are included in the statement of income and expenditure in the relevant financial year. The costs associated with the investments are separately accounted for in the statement of income and expenditure under ‘cost of investments’.

Interest benefits and interest liabilities Interest benefits and interest liabilities are incorporated proportional to time, taking into account the effective interest rate of the assets and liabilities concerned. When incorporating the interest liabilities, the transaction costs on the received loans that are part of the calculation of the effective interest are taken into account.

Expenditure

Costs of own fundraising The costs of own fundraising include all costs incurred in generating the total income from own fundraising, i.e. the direct acquisition costs and the own organisation implementation costs associated with fundraising.

Own organisation implementation costs The own organisation implementation costs are subdivided into costs associated with generating income and costs associated with expenditure in the context of the objective. In accordance with Directive 650, the total implementation costs are allocated using a key that is calculated based on the actual staffing and the time that is spent by employees on various activities.

The percentages were modified in 2016 compared to 2015, because the comparative effort of employees has changed due to organisational changes and alterations in the number of staff.

Most of the overhead of Terre des Hommes is allocated to the debit entries in accordance with these percentages. The allocation percentages for 2016 are shown in the table below:

Cost group

2016 2015

Aid costs (part of the objective)

21,4%

19,2%

Cost of awareness-raising (part of the objective)

20,0%

16,3%

Cost of own fundraising

23,6%

25,9%

Cost of joint fundraising

3,1%

3,2%

Cost of third-party fundraising

4,6%

5,2%

Cost of obtaining government grants

4,1%

4,4%

Cost of investments

0,8%

1,1%

Management and administration

22,4%

24,7%

Explanation • De The marketing and communication costs are allocated under the headings awareness-raising and fundraising.

The allocation was done based on the relative effort by the employees involved.

• For the allocation of costs generated by shops, Directive 650 (650.415) is followed, which states that ‘cost price means the purchase worth, plus the direct acquisition costs (paid to third parties) on purchase and sale’. Terre des Hommes has carried out an analysis to determine which costs should be counted as cost price. In this analysis, the costs that are necessary to gather and sell the second hand goods were taken into account. These are the costs of the shop premises and fittings, the costs of volunteers and the conveniences necessary to register the stream of goods, finalising the sales and receiving the payments.

Expenditure on the objective Structural aid Commitments to projects are considered to have been undertaken when a decision to do so is taken by either the Director or the Supervisory Board. We fully allocate them to

the year in which the decision was made. This decision has been communicated to the beneficiary.

Emergency aid and Rehabilitation Aid commitments that are the direct result of a disaster

ANNUAL REPORT 2016 TERRE DES HOMMES

situation and in which the period of aid does not exceed three years, are accounted for under the heading ‘Emergency aid and Rehabilitation’. The provision of aid facilitated by one or more campaigns by the Cooperating Aid Organisations is also accounted for under ‘Emergency aid and Rehabilitation’. All other aid provision is accounted for under ‘Ongoing Aid’ Salaries/pensions • Based on the terms of employment, wages, salaries and national insurance contributions are incorporated into the profit-and-loss account, insofar as these are due to employees.

• The pension scheme at Terre des Hommes is an average pay scheme. The pensionable salary is 12x the monthly wages + holiday allowance. Terre des Hommes had PGGM as pension executor under the scheme of PFZW (Pension fund for Care and Well-being). The degree of cover of PFZW was 90.1% at the end of December 2016 (representing the average current funding level during the past 12 months). The basic principle

51

is that the pension cost to be processed in the reporting period is the same as the amount of pension premiums owed over the period. Where the premiums owed have not been paid in full on the balance sheet date, an obligation is included for this amount. If on the balance sheet date premiums already paid exceed the premiums owed, a deferred assets item is included where it is the case that the fund will make a repayment or that the amount will be offset against future premiums owed. Furthermore, on the balance sheet date a provision is included for existing additional obligations with respect to the fund and the employees if it is likely that fulfilment of the obligations will require an outflow of resources and the scope of the obligations can reliably be estimated. The existence or otherwise of additional obligations is assessed on the basis of the implementation agreement with the fund, the pension agreement with the employees and other (explicit or implicit) commitments to employees. The provision is rated against the best estimate of the cash value of the sums needed to fulfil the obligations on the balance sheet date.

Explanation of the balance sheet at 31 December 2016 01. Tangible fixed assets

Real estate/ renovations head office and TdH shops

Office furniture and equipment at head office and TdH shops

Regional offices

1,924,786

304,783

Hospital boat Abarè

Total

1,167,290

5,150,312

PURCHASE PRICE Balance at 1 January 2016 Investments

1,753,453 1,614

164,041

-

- 165,656

Disinvestments

-

-

Exchange results purchase price

-

-

-

-

1,755,067

2,088,827

300,867

1,167,290

5,312,051

-1,063,891

-1,209,600

-177,268

-1,033,983

3,484,742

Balance at 31 December 2016

-3,916 -3,916

DEPRECIATION Balance at 1 January 2016 Depreciations

-91,529

-269,641

- -133,307 -494,477

Disinvestments

-

-

Exchange results depreciation

-

-

-

-

-

Balance at 31 December 2016

-1,155,420

-1,479,241

-173,352

-1,167,290

-3,975,302

599,647

609,587

127,515

-

1,336,749

Book value at 31 December 2016

3,916

- 3,916

Explanation 01 The main investments concerned the new ICT platform, including acquisition and implementation of core applications for program management. By the end of 2016 this project was completed. The investments in the ICT platform are accounted for under the office furniture and equipment for a book value of € 285,000,00.

We undertook a major health care program in the Amazon region in Brazil with the purpose-designed and built ship, the

Abaré, as of 2005. At the end of 2016, Terre des Hommes took the ship out of operation. Therefore, it has been actively depreciated to nil.

Earmarked reserves tangible fixed assets to achieve objective

The balance of the tangible fixed assets to achieve objective (€ nil) equals the reserve tangible fixed assets to achieve objective.

52

ANNUAL REPORT 2016 TERRE DES HOMMES

02. Financial fixed assets

LOAN/MONEY LENT OUT STUDIO JUX

TOTAL

-

-

Issue of loan

100,000

100,000

Balance at 31 December 2016

100,000

100,000

Balance at 1 January 2016

Explanation 02 Resulting from the cooperation agreement between Terre des Hommes and Studio Jux, a loan amounting to € 100,000 was provided in 2016 for the financing of workplaces at the subsidiary of Studio Jux (Be Suited) in Nepal. This loan is not subject to interest. Repayment in three terms as of 2018 has been agreed on, the last repayment will take place in 2020.

03. Receivables Interest on cash and cash equivalents Projects, Regional offices and dispatching abroad Legacies Volunteer groups/shops pre-paid costs Dutch Postcode Lottery Other donations and grants to be received Other amounts pre-paid and recoverable TOTAL RECEIVABLES

31 December 2016

31 December 2015

3,564

52,334

1,623,446

8,703

309,358 657,329 69,379

22,054

2,250,000

2,250,000

415,212

2,266,313

400

53,606

4,671,359

5,310,339

Explanation 03 • The item Legacies concerns the balance of the amounts that have been incorporated in the results and the according payments actually received.

• The receivable of Dutch Postcode Lottery concerns the annual contribution from regular draws.

• The remaining grants and grants to be received are still to be paid for GAA and Down to Zero.

04. Cash and cash equivalents

31 December 2016

31 December 2015

Cash and bank balances Head Office

7,477,414

265,665

Savings accounts

5,476,405

3,725,735

Deposits

75,000 8,075,000

The De Saint Exupéry Fund

88,516

87,925

Cash and bank balances TdH shops

754,627

718,193

Cash and bank balances Regions

880,180

770,841

14,752,142

13,643,359

TOTAL CASH

Explanation 04 At the end of 2016, a deposit expired causing a rise in cash and bank balances. The amount of cash and cash equivalents is sufficient for covering short-term obligations worth € 12.3 million (2015: € 10.8 million). At the end of 2016, Terre des Hommes had obligations worth € 6.8 million (2015: 10.1 million) to local project partners.

ANNUAL REPORT 2016 TERRE DES HOMMES

05. Reserves

Immediately available to Continuity Reserve MVA Total

achieve the objective reserve objective Balance at 1 January 2016

4,041,750

4,000,000

133,307

8,175,057

Release reserve objective

133,307

-

-133,307

-

Mutation earmarked funds

247,822

-

-

247,822

Result financial year

-63,143

-

-

-63,143

4,359,736

4,000,000

-

8,359,736

Balance at 31 December 2016

Reserves

Available to achieve the objective The freely disposable assets which are immediately available for expenditure to achieve the objective amounts to € 4.4 million (2015: € 4.0 million) at the end of 2016. In the course of 2016, the reserve MVA objective was released to the benefit of the immediately available assets as a result of the depreciation of the hospital boat.

Continuity reserve Terre des Hommes has a continuity reserve for covering short-term risks and for ensuring that obligations can be met in the future as well. The amount of the continuity reserve complies with the VFI directive on financial management for charitable institutions and must not exceed 1.5 times the annual costs of the operating organisation.

06. Funds

Balance at 1 January 2016

De Saint Van Breen- Mr. P.J.F. EC Total Exupéry New Future Scheefhals Bangladesh Fund Fund Fund 88,516

753 261,349 547,370 897,990

Plus: Income

-

22,151

325

Minus: Expenditure

-

-20,000

-

88,516

2,904

261,674

Balance at 31 December 2016

-

22,476

-228,163 -248,163 319,209

672,303

Explanation 06 • De Saint Exupéry Fonds (named earmarked fund) Until 31 December 2034 an amount of € 56,723 will not be freely available because of a historical notarial deed of donation which determines that the amount gifted must remain as an original asset base for a period of 30 years and that Terre des Hommes is only permitted to make immediate use of the fruits of this sum.

• Van Breen – New Future Fund (named earmarked fund) In 2013, the Van Breen family entered into cooperation with Terre des Hommes for a period of 5 years.

In 5 yearly instalments of € 20,000 the family wants to contribute to helping vulnerable children in developing countries, especially girls, in order to prevent and fight sexual exploitation of children. Both the deposited base asset and the yield are available for spending on the objective.

• Mr. P.J.F. Scheefhals Fund (named earmarked fund) This fund originated from the legacy of Mr. P.J.F Scheefhals, LLM, and is earmarked for among other things financial projects for children who are victims of violence, assault, abuse, exploitation, disownment or abandonment. Payment for the objective will be done from the annual capital gain and will commence after a lead time of one year.

• European Commission - Bangladesh Our Bangladesh office was awarded a grant of € 750,000 from the EU for the battle against sexual exploitation of children in Bangladesh. In 2016, € 228,161 of this amount was spent.

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54

ANNUAL REPORT 2016 TERRE DES HOMMES

07. Debts

31 December 2016

31 December 2015

12,000

38,543

-

755,000

Long-term debts 2 years Long-term debts 3 years Total long-term debts

12,000 793,543

Short-term project obligations 1 year Other short-term debts regional offices

7,293,337

9,950,746

481,801

191,911

Other short-term debts

4,039,647

610,021

Total short-term debts

11,814,785

10,752,678

TOTAL DEBTS

11,826,785

11,546,221

Explanation 07 • The short-term debts mainly concern project obligations which must be met within one year.

• In 2016, it was decided to bring down projects for more than one year to projects within one year, therefore these liabilities are included under short-term project commitments, • Other short-term debts include prepaid amounts of € 2,5 million on GAA.

Rights and obligations not included on the balance sheet Rights Via a notarial deed of donation 1,555 (2015: 1,424) Terre des Hommes benefactors have pledged contributions over the coming years. The annuity instalments arising from these deeds of donTheation were not taken into account in the balance sheet at the end of 2016. These amounts will be accounted for as income in the year in which they are received.

The expected income form legacies of which the size could not be reliably estimated at 31 December 2016 was not taken into account. The estimated amount of income is approximately € 0.6 million (2015: € 1.1 million); these legacies will largely be settled in 2017. In 2016, Terre des Hommes received a total of 27 files with an estimated worth of € 0.4 million.

Obligations Terre des Hommes stands as guarantor, through a bank guarantee, for the lease for three months on 16 shops (2015: 18 shops), amounting to a total of € 67,745,- (2015: € 65,848). In addition, group guarantees have been given to 16 shops to a total amount of € 69,894,- (2015: 11 / € 49,610). Terre des Hommes leases four photocopiers/printers from Grenke finance. There is a lease agreement in place for this equipment which ends on 1 September 2021.

At the end of 2016, 2 company cars were leased for a period of ultimately 48 months. Both contracts concern operational lease. The cars are used by employees that devote themselves to the shops and volunteers in the country.

Summary of obligations

< 1 year

> 1 year

Total

Lease of shops

580,539

1,242,542

1,823,081

Company cars

14,157

24,684

38,841

Photocopiers TOTAL OBLIGATIONS

2,678 10,712 13,390 594,699

1,277,938

1,875,312

ANNUAL REPORT 2016 TERRE DES HOMMES

Explanation to the statement of income and expenditure 2016 General The benefits from own fundraising turned out to be lower than initially budgeted, which was largely offset by government grants. In addition, the cost of structural aid is lower than budgeted because projects have started later and more money than budgeted was spent on emergency relief. The organisationâ&#x20AC;&#x2122;s implementation costs for own aid are below budget as a result of lower costs at Terre des Hommes country offices.

Income 2016 2015

08. Income from own fundraising Fixed contributions

4,985,176 5,595,923

Contributions from campaigns

595,449

Legacies

838,099 3,622,072

Spontaneous donations/other

195,889

144,492

90,674

6,563,216

9,504,558

Corporate market and institutional and capital funds

699,186

1,096,590

Total corporate market

699,186

1,096,590

Total private market

1,274,127

1,162,267

Donations received in TdH shops

Sales revenue TdH shops

84,477

107,784

Other income TdH shops

48,364

64,222

1,406,968

1,334,273

-

34,757

8,669,370

11,970,178

Total TdH shops* Regional offices TOTAL INCOME FROM OWN FUNDRAISING

*The results of the shops are further elaborated in the annexes

09. Income from joint fundraising

2016 2015

SHO Nepal

7,212

603,469

SHO Ebola

-

33,163

Total Income from joint fundraising

7,212

636,632

10. Income from third-party fundraising

2016 2015

Dutch Postcode Lottery (regular contribution) Dutch Postcode Lottery (additional project contribution) Other Lotteries Total Income from third-party fundraising

2,250,000

2,250,000

-

3,860,750

29,354

53,405

2,279,354

6,164,155

55

56

ANNUAL REPORT 2016 TERRE DES HOMMES

11. Government grants

2016

2015

BUZA DRA/Save the children South Sudan

643,311

-

BUZA DRA/Dorcas Ukraine

654,198

-

BUZA DRA/Dorcas Ukraine II

435,865

-

BUZA DRA/Cordaid JHR North Iraq

756,393

-

BUZA DRA/ZOA JHR Syria

798,806

-

BUZA DRA/Oxfam JHR Zimbabwe

388,000

-

BUZA /MFS II 2016

682,443

-

BUZA/GAA Alliance

2,210,900

-

BUZA/DtZ Alliance

3,450,817

-

10,020,733

2,073,416

235,007

4,148,661

10,255,740

6,222,077

Sub: BUZA Other grants Total Government grants

The item ‘other grants’ concerns a grant from the Dutch Ministry of Foreign Affairs regarding the IMAGE project in Bangladesh BUZA/DTZ Alliance

2016

2015

Total grant

3,579,588

-

minus: granted to alliance partners

2,384,163

-

Grant Terre Des Hommes

1,195,425

-

Of the total grant regarding the Down to Zero Alliance, an amount of € 2,384,163 is assigned to our alliance partners. This amount is included as cost of structural assistance. The grant awarded to Terre des Hommes therefore amounts to € 1,195,425.

12. Income from interest and investments Income from interest of current account/savings accounts/ deposits Interest received by volunteer groups Interest received by regional offices Total Income from interest and investments

2016

2015

198,430

220,566

1,876

3,147

29,687

16,827

230,173

240,540

Explanation 12 The interest rates on other savings balances further decreased in 2016. Combined with on average a lower balance in the bank accounts, this resulted in a lower interest income compared to financial year 2015.

ANNUAL REPORT 2016 TERRE DES HOMMES

13. Other income and expenditures Rental income Exchange rate result Other income and expenditure Total Other income and expenditure

2016

2015

63.813

62.797

-12.704

30.053

453

6.809

51.562

99.659

Explanation 13 In 2016, a part of the office premises was sublet to CKM (Center for Child and Human Trafficking) and to International Justice Mission, a foundation that provides justice to victims of slavery, sexual exploitation and other forms of violent repression.

Expenditure 14. Structural aid

2016 2015

Asia

3,647,003 8,246,813

East Africa

3,016,686

-136,649

334,503

338,921

3,231,149

4,056,175

10,229,341

12,505,260

-

1,846,701

10,229,341

14,351,961

South America The Netherlands / Other Total structural aid (own organisation) East Africa (transfers to alliance partners MFS II) Total structural aid

15. Emergency relief and rehabilitation

2016 2015

Own emergency relief

209,948

296,767

Using SHO resources

-

776,383

Using grant Ministry of Foreign Affairs

3,567,283

2,767,464

Total Emergency relief and Rehabilitation

3,777,231

3,840,614

Events after balance date There were no events after balance date that affected the annual account 2016

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ANNUAL REPORT 2016 TERRE DES HOMMES

16. Cost allocation

Aid Advocacy/ information Structural aid

Fund- Joint fund- raising raising

Third party fundraising

Aquisition of grants

Invest- Management & ments administration

2016 realised

2016 budget

2015 realised

10,229,341 - - - - - -

- 10,229,341 12,383,500 14,351,961

Emergency relief/ Rehabilitation 3,777,231 - - - - - -

- 3,777,231 2,200,000 3,840,614

Total aid 14,006,572 - - -

- 14,006,572 14,583,500 18,192,575

Staff

- - -

555,239 516,652 610,142 81,318 119,905 105,885 20,718

586,585 2,596,443 2,392,766 2,200,116

Accommodation

21,093 19,627 23,179 3,089 4,555 4,034 787

22,028 98,391

ICT

31,196 29,028 34,280 4,569 6,737 5,966 1,164

32,578 145,516 160,100 372,486

Other

176,545 148,861 140,533 19,549

Total Head office

784,073

714,168

808,134

108,524

147,132

15,935 57,820 2,753 173,704

25,422

Regional offices

1,885,006

-

-

-

-

-

-

Total costs

2,669,079 714,168 808,134 108,524 147,132 173,704 25,422

354,958 916,955

71,700 818,214

69,748 673,752

996,148

3,757,305

3,442,780

3,316,102

-

1,885,006

2,253,541

1,965,072

996,148 5,642,311 5,696,321 5,281,174

Marketing & communication - General

-

509,514

1,088,435

5,538

5,538

2,769

-

-

1,611,794

1,614,230

1,691,119

- Shops

-

42,761

253,062

-

-

-

-

54

295,877

146,125

199,334

Total marketing & communication

-

552,275

1,341,498

5,538

5,538

2,769

-

54

1,907,672

1,760,355

1,890,453

Totale expenditure 15,780,480 1,266,442 2,149,631 114,063

152,670 176,473 25,422

996,202 21,556,555 22,040,176 25,364,202

Key personnel ratios Number of employees At the end of 2016 the number of employees at head office was 38 (2015: 37); 34.5 FTE’s (2015: 32.1).

In the regions the number of employees at the end of 2016 was 58 (2015: 76). The total number of employees was 96 at the end of 2016 (2015: 113). In the fourth quarter of 2016, a reorganisation was carried out making 8.4 FTE’s redundant.

Board of Directors remuneration In accordance with Directive 650, the personnel costs for the Board of Directors are reported separately in this annual report. As of August 2016, a one-man direction is in place. The Supervisory Board has established the remuneration policy, the management’s remuneration level and the remuneration components. The policy is updated periodically.

In determining the remuneration policy and establishing the actual remuneration, Terre des Hommes follows the guidelines of the ‘Regulation remuneration managers of good causes for use by managements and supervisory boards’. This regulation determines a maximum standard for the annual income based on certain weight criteria. The assessment of the situation at Terre des Hommes was carried out by the remuneration commission. This resulted in a so-called BSD-score of 470 with a maximum annual income of € 124,233,- (1FTE/12 months).

The actual annual income of the director, relevant for reviewing in the light of maximums applicable, is € 116,751,- for Mr. A.J. van Santbrink (1FTE/12 months). This remuneration stayed within the maximums applicable for a one-man direction.

The yearly income, taxable allowances/additions, the employer’s pension contribution, pension compensation and other compensations in the long term for Mr. Van Santbrink stayed within the maximum amount of € 178,000,- per year as included in the regulation.

Moreover, the taxable allowances/additions, the employer’s pension contribution and other compensations in the long term were proportionate to the annual income.

The remunerations and composition of the remunerations are explained in the table on the right.

ANNUAL REPORT 2016 TERRE DES HOMMES

Board of Directors remuneration Name

A.J. van Santbrink

I.P. Wekking

A.J. van Santbrink

I.P. Wekking

Position

Managing Director

Director of Finance

Managing Director

Director of Finance

Year round 2016

1/1/16-31/07/16

Year round 2015

Year round 2015

fixed

fixed

fixed

fixed

Employment Period Type (term) Hours

40 40 40 40

part-time percentage 100 100 100 100 Remuneration (EUR) Annual income • Gross salary • Holiday pay • Bonus Total

105,325

69,198

104,796

76,359

8,426

5,536

8,384

6,109

-

- 3,000 3,000

116,751 74,734 116,180 85,468

Social security payments (employer’s contribution) 9,750 7,767 5,546 5,546 Pension payments (employer’s contribution)

14,586

6,831

14,185

9,600

Total remuneration 141,087 88,882 135,911 100,614

The pension cost refers to the employer’s share of the premium owed to the sectoral pension fund.

No loans, advances or guarantees were granted to the Board of Directors.

Unpaid ancillary functions of the Management Board: A.J van Santbrink - Vice-president TDHIF Assessment and approval annual account The Board of Directors of Terre des Hommes Netherlands has assessed the annual account 2016 in its meeting of 01-06-2017.

The Supervisory Board of Terre des Hommes Netherlands has given its approval to the annual account 2016 in its meeting of 19-06 2017.

Other data Result allocation The result is divided according to the result division as described in section 6.2 Result allocation.

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Audit statement from the independent accountant

ANNUAL REPORT 2016 TERRE DES HOMMES

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ANNUAL REPORT 2016 TERRE DES HOMMES

8. What do we want to achieve in 2017?

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From Multi-Local to Global Expert Network

The vision and work of Terre des Hommes are based on the International UN Convention on the Rights of the Child and the Convention on Child Labour as established by the International Labour Organization. Since 2016, TdH has been actively contributing to the realisation of the Sustainable Development Goals (SDGs). Three out of 17 goals directly address Terre des Hommes’ objectives. The IVRK, the ILO Convention and the SDGs provide the international framework within which Terre des Hommes deploy its activities.

We seek to distinguish ourselves from other organisations that equally focus on these themes.

Through knowledge and innovation we aim at creating an environment that stimulates the need and willingness to stop child exploitation. We do this, for example, by proactively encouraging companies, governments, institutions and NGOs to prevent and combat child exploitation.

Companies and governments realise that the prevention of child exploitation is essential in bringing about a sustainable, responsible society and in reaching economic and ethical, moral goals. We work closely together with other organisations to achieve these goals.

We focus on what works, on what can be influenced and we work together

Based on our Theory of Change we work towards a world without child exploitation. We address poignant topics within our themes. Addressing, tackling and persisting are at the heart of our approach. We set things in motion while creating a setting in which stakeholders see the need, are prepared to take action and improve, and support TdH as partner. We frequently work together with the private sector, governments and alliance partners. We use our own resources to start research and programs and make sure that third parties are prepared to fund their implementation.

The impact must increase

We want to improve and achieve more for the children. To optimize effectiveness we prefer working with larger, well-monitored partners operating from a regional perspective to working with many small partners spread over dozens of diverse locations. Other collaborations include joint ventures such as Down to Zero Alliance, Girls Advocacy Alliance, Image, Women Win, Global Partnership to End Violence Against Children, Mica Platform and International Federation of the Hommes.

Ratios in line with market demands

The cost / income ratio must stay within 25-30%. In other words, given a fundraising revenue of, say, € 20 million, expenditure may not exceed € 5 to 6 million. We aim for proceeds of € 1 million per employee. By making the right choices and focusing on the themes we are good at, we seek to increase revenue in the Netherlands and all other countries in which we operate. We need to have the courage to denounce issues and to take the responsibility to solve them.

Task-setting fundraising

Fundraising (€ 13 million in 2017) is aimed at recruiting new donors through direct dialogue (virtual reality, events), maintaining current donors (‘closed door’ via proactive relation management and bureau), private sector (through industry approach and proactive approach corporate sector) and unambiguous proactive recruitment of major donors and foundations. Program staff (8 million in 2017) is commissioned with task-setting assignments.

ANNUAL REPORT 2016 TERRE DES HOMMES

SWOT

Once again, we have refined our SWOT analysis in 2017 with a look at the future.

The strength of our expertise, External parties increasingly regard us as strong cooperation partner

We remain a small organisation

Institutional fundraising offers platform to support our work

Global developments

Strengths

• 50 years of experience and positive image • Relevant partner network • International Federation (closely involved in strategy and campaigns) • Innovative through effective and creative solutions in combating child exploitation • Modern ICT-environment as solid base for efficiency • Embedding quality in working processes • Enthusiastic and motivated team • Creative communiction power • Solid national coverage owing to network of Terre des Hommes shops • Expertise and knowhow in area of child exploitation

Weaknesses

• Small player in a big arena • Limited public awareness about Terre des Hommes activities • Limited number of employees, limited capacity • Name of organisation does not adequately communicate what the organisation stands for • Lack of international, uniform branding

Opportunities

• Increased attention to corporate social responsibility • Increasing impact of social media, increased acceptance • Institutional fundraising, both at home and abroad • Local fundraising in East Africa and Asia • Growing effective cooperation among NGOs

Threats

• Political developments, both at home and abroad • Fragmentation of charity sector • Shift in donors’ preference to make donations for national programs • Binding donors to the organisation increasingly difficult • Reduced willingness of people to donate

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ANNUAL REPORT 2016 TERRE DES HOMMES

By 2020, we want to achieve the following goals:

1. All our programs have been aligned with the Theory of Change and with our goal to stop child exploitation by 2030, 2. A sustainable impact on 500,000 children as direct beneficiaries and the prevention of child exploitation or the liberation of children from this context, 3. Over 10,000,000 adults and children are indirectly supported by our programs, 4. Our income increases to 30 million, we have 100,000 regular donors, 100,000 online followers and a multiple thereof are involved in our campaigns, 5. Eighty percent of our employees function on a professional A and B level within the Terre des Hommes performance system.

Budget 2017 Income x â&#x201A;Ź 1.000

Budget 2017

Budget 2016

Income from own fundraising

9,857

11,682

Income from third-party campaigns

2,280

2,305

10,904

7,980

100

130

23,141

22,097

Budget 2017

Budget 2016

13,717

12,384

Emergency relief

2,658

2,200

Cost own organisation

2,799

3,061

Cost awareness-raising

1,058

1,175

Cost fundraising

1,844

2,036

Management and administration

739

818

Other costs

339

366

23,041

22,040

Government grants Interest and other income Total income Expenditure x â&#x201A;Ź 1.000 Structural aid

Total Expenditures Result

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ANNUAL REPORT 2016 TERRE DES HOMMES

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Annexes annual account Results from volunteer groups Explanation

The result of the shops has risen by € 151,016,- compared to 2015. This was mainly due to an increase in the number of shops in 2016.

In the chapter ‘Rights and obligations not included on the balance sheet’ we stated the amounts for guarantees given by head office as well as the obligations regarding the lease of shop premises.

Statement of income and expenditure 2016 Shop location Alkmaar Alphen a/d Rijn Amersfoort Amsterdam Apeldoorn Arnhem Assen Barneveld Bergen op Zoom Breda Delft Den Bosch Den Haag Deventer Drachten Eindhoven Emmen Enschede Goes Gouda Groningen Haarlem Haarlemmermeer Heerenveen Heerlen Helmond Hengelo Hilversum Kampen Leeuwarden Leiden Maastricht Middelburg Nijmegen Oosterhout Pijnacker Roosendaal Rotterdam Tilburg Utrecht Venlo Wageningen Westland Zoetermeer Zundert Zwolle Total shops Working groups Total

Gross turnover

Gross profit

Total profit

Income and expenditure 2015 Gross turnover

Gross profit

Total profit

30,470 7,864 7,864 18,047 -12,605 -11,370 35,517 9,017 10,230 31,428 2,340 4,856 64,473 37,154 37,904 55,445 19,133 21,433 59,387 30,613 31,313 59,620 24,126 26,621 56,443 38,992 39,004 44,110 18,711 22,305 70,253 46,990 48,389 54,368 28,736 34,660 39,109 14,039 14,039 37,606 2,012 2,012 22,521 20,581 21,600 22,348 12,722 19,281 49,525 29,351 29,701 44,743 18,507 20,582 87,851 58,625 61,642 92,557 60,216 67,614 44,404 26,431 32,349 45,303 14,845 17,634 74,174 37,534 38,951 60,694 20,898 28,770 61,391 25,533 43,112 39,121 6,542 8,876 32,843 15,996 21,359 32,856 14,612 17,099 15,260 5,024 5,099 12,850 483 1,317 73,956 44,620 44,832 70,693 30,030 34,142 38,794 18,587 18,787 25,593 4,435 7,531 33,361 9,548 9,649 34,445 6,366 7,717 33,006 16,405 16,555 31,667 7,226 10,262 33,399 11,648 11,801 - -1,443 -1,443 37,596 -6,244 -6,244 37,001 13,313 16,545 63,122 41,347 41,964 52,818 22,814 24,745 59,401 38,119 39,586 37,151 11,441 16,476 28,585 11,287 13,389 32,075 14,940 17,681 3,705 -14,845 -14,770 - -248 -248 60,953 32,901 32,901 59,093 28,343 31,700 118,146 89,515 93,033 114,192 103,662 111,763 63,140 40,051 40,166 58,975 35,030 37,164 13,612 -5,159 -5,044 15,101 -12,730 -9,649 51,998 24,505 24,555 51,384 23,738 25,642 39,095 24,836 25,266 42,112 25,547 26,663 61,864 36,882 37,257 58,901 32,065 34,206 36,047 4,844 6,361 35,485 1,100 13,040 44,749 22,627 22,825 42,217 13,161 15,389 81,273 48,243 48,798 77,663 28,566 35,631 160,527 148,153 149,508 152,205 136,294 141,287 22,632 1,780 2,454 - -600 -600 22,721 -3,500 -3,159 29,365 -9,255 -5,076 44,416 14,547 16,207 44,272 -2,010 3,103 38,678 20,945 21,499 48,712 27,910 30,873 43,567 25,141 38,155 46,230 24,966 39,978 58,739 40,667 41,276 50,098 29,462 31,596 - -4,513 -513 - - 58,171 25,202 25,412 58,812 25,075 27,470 40,212 11,169 12,123 34,484 24,958 27,718 47,190 16,077 24,633 49,346 16,993 23,401 2,256,276 1,189,129 1,271,818 2,041,186 892,427 1,056,397 16,785 15,427 16,645 9,913 2,658 81,090 2,273,061 1,204,556 1,288,483 2,051,099 895,085 1,137,487

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ANNUAL REPORT 2016 TERRE DES HOMMES

ANNUAL REPORT 2016 TERRE DES HOMMES

Final editing: Chief editor: Text: Images:

Design and production:

Terre des Hommes Liz van Velzen, Jolanda van Witzenburg Terre des Hommes, Yvette Brook Quinten van der Blonk, Corbino, Dirk W. de Jong, Alex Koeleman, Pim Ras, Oscar Timmers, Sven Torfinn, Adnan Wahid Newton21

Stichting Terre des Hommes Nederland Zoutmanstraat 42-44 2518 GS Den Haag 070 - 3105000 www.tdhnetherlands.org info@tdh.nl

Colophon

These annual accounts are a translation from the Dutch version, in case of any interpretation discrepancies, the official Dutch version prevails.

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www.tdhnetherlands.org