1. Financial Sustainability

2. 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.

3. 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

4. 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 at the June 2017 Council meeting.

5. 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

6. 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.

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

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

9. 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

10. 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