Annual report

Supplementary Service fees:
The IFRC pro-
vides services to National Societies and other 
partners, such as procurement and logistics sup-
port, the provision of vehicle fleet and rental of 
shared office space and administrative services.
The Supplementary Services of the IFRC are pro-
vided on a full-cost recovery basis. Income from 
Supplementary Service fees was 25.9M in 2022.
Cost recoveries:
Expenditure associated 
with the implementation of the programmes 
and the provision of Supplementary Services, 
entails direct costs, indirect costs and in some 
cases donor-specific costs. The indirect costs 
and donor-specific costs are borne by the IFRC 
Regular Resources budget and are recovered 
from the programmes and Supplementary 
Services budgets through the indirect and other 
cost recovery mechanisms.
1. 
Indirect costs are recovered at a rate of 6.5 
per cent. This indirect cost recovery is lower 
than the average 7 per cent for United 
Nations and other international develop-
ment agencies.
2. 
The rates of cost recovery for the provision 
of vehicle fleet and other logistics services 
are reviewed annually and apply equally 
to humanitarian response operations, 
thematic programmes, and Supplementary 
Services.
3. 
Additional costs are associated with 
earmarking and donor-specific reporting 
requirements. These costs are separately 
recovered through donor-specific cost 
recoveries to ensure that donors who direct 
funds and/or who have specific reporting 
requirements are not subsidized by those 
donors who accept standard IFRC reports.
Annual Overview 
| How the IFRC is funded 
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In 2012, the IFRC established a Donor Advisory 
Group (DAG), which is composed of representa-
tives of donor governments, member National 
Societies of those countries, and the European 
Union. Group members are organizations that 
contribute more than 10 million Swiss francs 
multilaterally to the IFRC annually for at least 
two consecutive years. There are currently nine 
members and four observers and the group was 
chaired by the EU/European Commission (DG 
ECHO) in 2022.
The goal of the group is to: