Financial Report 2016

This report provides an overview of income and expenditure, results and reserves with ratios for 2016. The total income for 2016 amounted to just above € 1 million and ChildsLife achieved a total expenditure to projects of € 776.703

Overview income and expenditure in 2016:

   Actual 2016  Budget 2016  Actual 2015
Total income 1.027.943 1.024.112 1.313.006
Expended to the projects 776.703 726.640 958.859
Fundraising costs 176.129 169.950 179.349
Management and administration 30.969 34.443 29.003
Total expended 983.801 931.033 1.167.211
Results:
– Continuity reserve -6.323 93.079 52.711
– Designated reserves 64.295 0 82.113
– Designated funds -13.832 0 10.971
Amounts in Euros

Overall income

An overview of income is provided below.

Overview of income:

   Actual 2016  Budget 2016  Actual 2015
Collections 0 5.000 2.170
Donations and gifts  548.417  522.571 574.363
Designated gifts 104.845 185.441 181.966
Gifts-in-kind 316.774 269.850 516.344
Special events 30.578 28.100 12.850
Actions of schools 2.140 12.000 4.049
Legacies 23.846 0 17.657
Sale of goods 824 1.000 750
Income from interest 360 150 828
Other 159 0 105
Total income 1.027.943 1.024.112 1.313.006
Amounts in Euros

Substantial Discrepancies

In 2016 the overall income of the organization amounted to over € 1 million. GIK income decreased by € 200.000 from 2015 due to lack of the availability of appropriate goods for ChildsLife programs in 2016.

Funds to projects

Total funds to projects amounted to € 776.703 in 2016. € 615.494 was spent on Structural Aid. The remaining amount was spent on Information/Education, Preparation/Coordination and Emergency Aid. ChildsLife’s total funds to projects was € 60.000 higher than budgeted.

Overview of expenditure:

   Actual 2016  Budget 2016  Actual 2015
Information/Educational 33.114 40.051 41.502
Preparation/coordination of activities 105.007 106.604 91.950
Structural aid 615.494 545.038 804.694
Emergency aid 23.088 24.948 20.713
Total 776.703 716.641 958.859
Amounts in Euros

ChildsLife provided support to 3 countries in 2016, as detailed below. The budgeted aid to Romania increased by € 14.000, aid to Kenya decreased by nearly € 9.500 due to decreased activity. Moldava received support during the first half of 2016 of nearly € 70.000.

The amount of nearly € 11.000 was spent on support to  Democratic Republic of Congo and Namibia.

Expenditure by country:

Country  Expended Budget
Romania 240.852 226.870
Kenya 171.638 181.119
Moldova 68.200 0
Burkina Faso 0 5.000
Other 10.819 0
Totals 491.509 412.989
Amounts in Euros

Fundraising costs

The costs for fundraising were € 176.000 in 2016.

Management and administration costs

The costs for management and administration were € 31.000 in 2016. This includes a percentage of salaries, office, accommodation and other general costs, including audit fees.

Overview of distribution of operating costs:

   Actual 2016  Budget 2016  Actual 2015
Salaries and social security 230.881 249.475 207.127
Misc. personnel 16.836 14.510 3.625
Travel and accommodation 14.916 14.104 17.937
Office accommodation 17.723 19.461 15.418
Office administration / promotion 20 years anniversary 32.323 55.610 30.961
Educational and informational materials 3.403 6.200 24.226
Other general expenses 33.197 24.740 40.383
Direct fundraising costs 143.015 133.944 137.847
Structural help 491.509 412.989 689.689
Total 983.801 931.033 1.167.211
      Amounts in Euros

Personnel costs

In 2016, the costs for personnel and miscellaneous personnel were € 37.000 higher than in 2015 due to staff changes and a restructuring of staff working hours.

Structural help

Structural help was € 79.000 higher than budget due to more GIK donations than anticipated.

The results and reserves for 2016:

   Actual 2016  Budget 2016  Actual 2015
– Continuity reserve -6.323 93.079 52.711
– Designated reserves 64.295 0 82.113
– Designated funds -13.832 0 10.971
Total 44.141 93.079 145.795
Amounts in Euros

Continuity reserve

In 2016 the continuity reserve decreased by € 6.300 as a result of decreased income by donations and designated gifts.

Designated reserves

Designated reserves (inventory and tangible fixed assets) amounted to € 64.000.

Designated funds

In 2016, a total of € 105.000 was received in designated funds of which a total of  € 119.000 was released. Funds were used for the ChildsLife education program; the ChildsLife Live, Learn, Earn Program; school feeding programs in Kenya and ChildsLife AnneNoor Education Centers in Romania.

Ratios of Expenditure:

   Actual 2016  Budget 2016  Actual 2015
Expenditure to projects/total income 76% 71% 73%
Expenditure to projects/total expenses 79% 78% 82%
Costs fundraising/income fundraising 17% 17% 14%
Costs management and administration/total expenses 3% 3% 2%

The ratio expenditure to projects in relation to total income is 76%. This indicates which part of income is spent on projects.

The ratio expenditure to projects in relation to total expenses is 79%. This indicates which part of total expenses is spent on projects.

In 2016 the ratio costs for fundraising is 17%. This ratio indicates the relation between costs of fundraising and total income of fundraising. This is well below the standard of 25% set by Dutch charity regulator CBF.

The ratio management and administration is 3%. This ratio indicates which part of total expenses was spent on management and administration costs.

Expectations for the year 2017

Total forecast of income for 2017 is forecasted at € 931.000. Income is planned from several funding streams including direct mail, foundations and special events. Funds to programs in 2017 are budgeted at € 678.555 of which € 521.000 will be spent on structural aid.

In addition, ChildsLife main focus is always on achieving the funds to implement projects, to maintain a balanced budget and increase the continuity reserve. ChildsLife will continue to carefully invest in fundraising activities that will lead to increased income.