Financial Sustainability

IIASA’s funding sources IIASA has two main sources of funding: Membership contributions from National Member Organizations (NMOs) External Project Funding In addition, IIASA receives support through donations, especially to support young scientists.

Funding from NMOs IIASA has a privileged position in that it derives around half of its operating budget from NMO country contributions. This provides independence and flexibility, however the number of NMOs is not stable and can vary from year to year, hindering long-term planning. Membership contributions have increased significantly over recent years: Year 2011 2012 2013 2014 2015 2016* 2017** Membership Contributions € 8.8m € 9.0m € 9.5m € 11.3m € 11.8m € 12.4m € 13.2m *2016 figures may still be subject to change pending the outcome of the ongoing financial audit **2017 figures are budgeted

Funding from NMOs IIASA managed to grow its funding base through increased contributions from existing NMOs and increasing NMO membership overall (while being selective) At recent meetings, Council has discussed the non- compliance of membership contributions by NMOs and has asked IIASA management to draft a policy to address this and report to the June 2017 Council meeting In addition, in the recent past Council has adjusted the level of membership contributions every five years to take into account inflation. Council will discuss adjusting membership contributions for the period 2018-2022 at the June 2017 Council meeting.

External Funding from Contracts and Grants IIASA has been very successful in attracting external project funding, with such funds reaching more than € 10m a year: Year 2011 2012 2013 2014 2015 2016* 2017** External Contracts & Grants*** € 7.7m € 7.8m € 8.3m € 8.8m € 9.8m € 10.3m € 11.0m *2016 figures may still be subject to change pending the outcome of the ongoing financial audit **2017 figures are budgeted ***Includes income redistributed to partner institutes collaborating on projects

Summary Table: Funding from NMOs and Contracts and Grants Year 2011 2012 2013 2014 2015 2016* 2017** Membership Contributions € 8.8m € 9.0m € 9.5m € 11.3m € 11.8m € 12.4m € 13.2m External Contracts & Grants*** € 7.7m € 7.8m € 8.3m € 9.8m € 10.3m € 11.0m TOTAL € 16.5m € 16.8m € 17.8m € 20.1m € 21.6m € 22.7m € 24.2m *2016 figures may still be subject to change pending the outcome of the ongoing financial audit **2017 figures are budgeted ***Includes income redistributed to partner institutes collaborating on projects It is to be noted that IIASA’s tax privileges (e.g. tax free salaries) increase the purchasing power of the income shown above by about 50% as compared to national research institutes.

Forecasted development of funding sources By 2020, NMO contributions are expected to reach € 20m and external funding to stabilize at € 10-12m per year

Other Fundraising Sources IIASA has also been developing a third income stream of donations as shown in the table below: Years: 2011-2017 Donations to IIASA Donations to FoI* Annual Fund €29,765.50 $ 2,868.20 Petr Aven YSSP Fellowship €35,000.00 IIASA Fund €7,856.47 $ 3,725.00 Peter E. de Jánosi Postdoctoral Fellowship €13,250.00 $ 997,780.23 Roger Levien YSSP Fellowship $ 17,250.00 Ferrero YSSP Fellowship €17,375.00 Howard Raiffa Fellows Program   $ 33,650.00 TOTAL €103,246.97 $ 1,055,273.43 * Friends of IIASA

IIASA’s Financial Reserve IIASA aims to maintain a reserve of approximately € 7m, to fund unexpected or non-routine expenditure that cannot easily be accommodated within a regular annual budget, to compensate for shortfalls in income and to enable operations to continue to run smoothly in the event of delayed receipt of income. The following table shows how IIASA’s reserve has developed in recent years: Year 2012 2013 2014 2015 2016* Restricted Funds € 1.2m € 1.3m € 1.0m Unrestricted Funds € 6.2m € 5.8m € 6.5m € 6.9m € 7.2m Net Assets € 7.4m € 7.0m € 7.8m € 8.1m € 8.2m *2016 figures may still be subject to change pending the outcome of the ongoing financial audit

Summary: Key elements of IIASA’s financial policy Increase in core funding through a selective brokering of new members as well as the increase of contributions from existing members (aim: € 20m by 2020) Development of a policy for non-compliance of NMOs regarding their membership obligations Stabilization of external funding at a high level (aim: € 10-12m by 2020) Increase of donations through fundraising Better forecasting of resources including through the use of scenarios Protection of the financial reserve for unexpected or non-routine expenditure