Healthy financial position of a grassroots party

The annual accounts of Sósíalistaflokkurinn are characterized by the frugality of grassroots organizations run by contributions from members, financial contributions, and not least, volunteer work. Due to the coronavirus pandemic, there were fewer meetings during the year and thus less cost associated with them, but in the latter half of the year, the party participated in renovating Vorstjarnan's rented premises, primarily with a significant contribution from several volunteers, but partly with the purchase of materials.

The income of Sósíalistaflokkurinn consisted of membership fees and contributions from individuals amounting to 3,645,853 kr. and a grant from Reykjavíkurborg amounting to 1,647,865 kr. This grant was allocated to Vorstjarnan, a support fund that assists the less fortunate in building and running their advocacy in organized groups, associations, and organizations, and therefore the grant from Reykjavíkurborg did not go into the party's operations. Sósíalistaflokkurinn received no grants from companies in 2020.

The party's expenses were 2,303,926 kr. and were divided between costs for renovations of Vorstjarnan's rented premises at Bolholt 6, costs for meetings in the first quarter, regular office and collection costs, and advertising and promotions. All work within the party is done on a voluntary basis, and the party paid no salaries or fees for the work of individuals. Out-of-pocket expenses are purchases of goods and services from external parties.

The surplus was 2,996,382 kr. in 2020.

The party's assets were primarily cash, which at the end of 2020 was 4,157,557 kr., and equipment and tools, 279,945 kr. Vorstjarnan, which received an independent identification number this spring, was accounted for with the party in 2020. The fund's cash at the end of the year was 2,635,546 kr. According to the accounts, the assets of the party and Vorstjarnan were therefore 7,473,048 kr.

Sósíalistaflokkurinn owes next to nothing. Short-term liabilities were 24,542 kr. at the turn of the year. Equity as a percentage of total assets is 99.6%.

As mentioned earlier, the work of Sósíalistaflokkurinn is characterized by the volunteer efforts of idealists. The party's annual accounts therefore do not give a clear picture of the party's activities, showing only the financial side. Behind it, however, is much more valuable volunteer work that is not recorded in the financial accounting.

Here you can read the account:Annual Accounts 2020