Our financial policy
Regularly the media report about the way charity organizations spend their money. You have the right to require adequate information about our financial policy and about the way we spend your donations.
Our financial backup of the crèche concerns three main subjects: reservations, maintenance of buildings and furniture, regular payments to counter the shortfall on the exploitation of the crèche (salaries, food, etc.)
1 We do not hoard money
* We reserve an amount of money in case our fund raising capacity disappears completely. With this reservation we guarantee that the crèche will survive for another two years. This period can then be used to adapt to a drastic change of the financial conditions.
* We do put money aside for crèche debits and staff-pensions.
* We do save the donations made for a specific project until we have the amount required to carry out this project. We also decide when the time is right for carrying out the project. In the past we did this with Ivy’s new house (she is the cook and lives at the crèche domain) and we did this again with building the big hall, the sponsor-wall and extra classrooms.
* We do not invest in stock, but put the money aside on a bank account that has a good interest rate.
2 No high-priced management in Holland
* Everyone involved in the activities of the Dutch trust works pro deo. The members can declare expenses, but they rarely do!
3 Our cost structure is very low
* According to the Centraal Bureau Fondsenverwerving (CBF; an independent organization that supervises charities) no more than 25% of the donated money can be used for costs made. We stay well below 25%. On a yearly basis our costs are no more than 10% (mostly used for communication purposes, financial transactions and auditing). This means that of every euro donated, more than 90 eurocents go to the crèche!
4 Our Financial goals for 2010
* We expect the shortfall of Lynette’s crèche in Mutare this year to be circa 35.000 euro. For urgently needed renovations, we expect to spend another 7.000 euro. Our expected income from donations in 2010 will be 20.000 euro. Another 20.000 euro we expect to earn by our projected activities like Workshops and Sales Exhibitions.
We sincerely hope that our donors, you, won’t forget Lynette and her 150/160 children in 2010. They deserve a top-of-mind awareness.
If you are interested in our annual financial report or if you have questions about our financial approach, please let us know.
