Financial Information, January 2016
What is it you need to learn from a charity’s financial statements?
Well, there are really only 2 important questions:
1. Does the charity have sufficient reserves to continue its current charitable works?
Yes, we are financially secure. We ensure that we have enough funds to cover the entire school year before we start a sponsorship or put a child onto the food programme. When we start a building project, we make sure that we can see it through to completion.
In addition, you will see from the 2015 financial statements that our donation revenues increased to just under $100,000. We are gaining momentum because our projects make lives in Dekpor better and we use those donated dollars very efficiently. (The 2014 year end was only 8 months because we changed the year end to August from December to align with the school year.)
Educated children break the cycle of poverty. We are planning for a brighter future for not just Dekpor's children, but the entire community as better educated, well-fed youngsters become adults through expanded feeding programs, improved education, and sanitation.
2. More importantly, for every dollar you donate, how much actually goes to charitable activities?
To ask the question a different way, how much gets spent on administrative expenses?
We pay accounting fees and some website expenses -- no salaries, no advertising, no rent, no marketing.
Of the $100,000 in donations this year, more than $95,000 has been or will be spent on charitable programs.
Very few charities can make that claim!
That’s what you need to know; the rest is up to you.
Help us continue to make a difference.
Andrew Sanderson, CA, CPA