Annual Report 2007
Oxfam America's financial results for the year continued to build upon the successes of prior years and have positioned us well for future growth of our program activities and fulfillment of our mission. In 2007, unrestricted contributions grew 15 percent to $36.5 million from $31.7 million in 2006. Total net assets grew by $9.9 million in 2007. Total expenses grew in 2007 by $5.6 million. For the year, program-related expenses represented 80 percent of our total expenses.
Oxfam America's financial results for 2007 continued to build upon the successes of prior years and have positioned us well for future growth of our program activities and fulfillment of our mission. In 2007, unrestricted contributions grew 15 percent to $36.5 million from $31.7 million in 2006. Notable restricted contributions in 2007 include $7.4 million related to our work in the US Gulf Coast and $14.7 million for the Campaign for Oxfam America. Through the end of fiscal year 2007, we have recorded over $31.2 million in contributions directly attributable to the Campaign for Oxfam America.
Total net assets grew by $9.9 million in 2007 primarily as a result of $8.0 million of Campaign for Oxfam America contributions received for expenditure in future years, $5.3 million of Gulf Coast relief and rehabilitation program contributions, and increases in unrestricted net assets of $4.3 million. These increases were offset by a net expenditure in 2007 of $7.6 million in humanitarian funds raised in prior years.
Total expenses in 2007 grew by $5.6 million, or 11 percent, when compared with 2006. Program services-related expenses grew $5.0 million, of which $4.6 million was related to regional development programs and $1.4 million was related to increases in our policy and advocacy programs. The program-related increases were offset by a $1 million decrease in humanitarian related expenses, reflecting the net effect of the winding down of our South Asia tsunami relief program. For the year, program-related expenses represented 80 percent of our total expenses.
In 2007, support services grew 6 percent as we continued to make a number of strategic investments in key areas. Over the last two years, we have invested over $2 million in a number of technologies, including connectivity between regional and US-based offices to improve both the effectiveness and efficiency of our work as well as to help reduce our carbon footprint. In 2007, we also made strategic investments in our human resource function and implemented a new constituent relationship management system that will improve outreach to our supporters and donors.
Our strategy of investing first in programs and second in critical support services while ensuring financial stability, continues to receive the endorsement of independent rating agencies. More important, our continued growth in contributions and in the number of supporters represents our most important endorsement—that of our donors.