Finance

Revenues

SALEM International reported revenues of € 5,214,872.84 in 2008.
Key sources of the revenues were as follows:

• 52 % of revenue comes from subsistence payments. These funds are paid from public funds for children, adolescents, and adults with disabilities cared for in the SALEM institutions in Germany.

• 34% of revenue comes from donations and bequests. SALEM depends on voluntary contributions from private donors to provide a broader range of services.

• 8% of revenues come from the spa / guest house, Lindenhof SALEM, as well as the SALEM farm shops.

Expenditures

Salem International’s expenditures in 2008 were € 4,979,149.39, with the key uses as follows:

• 80% is directly channeled into SALEM projects in Germany and worldwide.

• 20% of expenditures are used for administration, donor support and publicity such as through the magazine SALEM Helps!”.

The administrative cost ratio is considered reasonable and necessary to ensure adequate oversight over operations and the use of funds. Costs incurred for advertising and public relations enables SALEM to inform the donors and the broader public about its activities and projects as well as providing accountability for the use of donations. Advertising and administrative expenses are necessary and reasonable expenses.

Preparation and auditing of financial statements

The financial statements of SALEM International GmbH are prepared in accordance with the provisions of the German Commercial Code (Handelsgesetzbuchs—HGB) and audited by Rödl & Partner.

The accounts of SALEM are published annually in the German Federal Gazette (Bundesanzeiger) and are available for public inspection at its website http://www.ebundesanzeiger.de.