Financial Report 2015

This report provides an overview of income and expenditure, results and reserves with ratios for 2015. The total income for 2015 amounted to just under € 1.4 million and ChildsLife achieved a total expenditure to projects of nearly € 960.000.

Overview income and expenditure in 2015
   Actual 2015  Budget 2015  Actual 2014
Total income 1.373.826 1.447.766 1.642.848
Expended to the projects 958.859 1.226.874 3.056.655
Fundraising costs 240.169 193.440 233.266
Management and administration 29.003 27.668 38.963
Total expended 1.228.031 1.447.982 3.328.884
Results:
– Continuity reserve 52.711 -216 -112.738
– Designated reserves 82.113 0 -1.546.610
– Continuity reserve 10.971 0 -26.686
Amounts in Euros

Overall income

An overview of income is provided below. Substantial discrepancies between actual and budgeted results will be clarified subsequently.

Overview of income:
   Actual 2015  Budget 2015  Actual 2014
Collections 2.170 0 0
Donations and gifts  574.363  689.916  493.382
Designated gifts 181.966 0 147.820
Gifts-in-kind 516.344 700.000 865.038
Corporate sponsoring 62.744 17.000 65.381
Special events 12.850 18.000 18.811
Actions of schools 4.049 16.500 7.619
Legacies 17.657 6.050 14.175
Sale of goods 750 0 29.663
Income from interest 828 300 777
Other 105 0 182
Total income 1.373.826 1.447.766 1.642.848
Amounts in Euros
Substantial Discrepancies

In 2015 the overall income of the organization amounted to over € 1.3 million. The overall income decreased by € 269,000 over 2014 due lack of availability of appropriate goods for ChildsLife programs in 2015.

Income from donations and gifts and designated gifts amounted to € 756.329 and was up by 18% over 2014. Also income from legacies and corporate sponsoring increased in 2015. Income from events and school decreased in 2015. ChildsLife anticipates the income to increase in these areas in 2016.

Corporate sponsoring

CBF regulations state that donations through corporate sponsoring have to be accounted as both income and fundraising cost. As a result it appears that ChildsLife has utilised general income to fund advertising which is not the case as all advertising in 2015 was fully sponsored.

Funds to projects

Total funds to projects amounted to € 958.859 in 2015. € 804.694 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 €268.000 lower than budgeted due lack of available goods for programs.

Overview of expenditure:

   Actual 2015  Budget 2015  Actual 2014
Information/Educational 41.502 35.928 50.584
Preparation/coordination of activities 91.950 92.628 119.083
Structural aid 804.694 1.077.263 2.858.409
Emergency aid 20.713 21.055 28.579
Total 958.859 1.226.874 3.056.655
Amounts in Euros

Total expenditure to Structural Aid came to €805.000 in 2015. ChildsLife provided support to 3 countries in 2015, as detailed below. The budgeted aid to Romania more than doubled due to increased activity, whereas aid to Kenya remained just under budget. Budgeted aid to Moldova did not take place in 2015 since Moldova was supplied with large quantities of appropriate goods in the last quarter of 2014 and was still absorbing these goods during 2015. Further supplies to Moldova were therefore postponed to the first and second quarter of 2016.

Expenditure by country
Country  Expended Budget
Romania 479.127 212.328
Kenya 200.312 207.449
Moldova 0 550.000
Burkina Faso 10.250 0
Totals 689.688 969.777
Amounts in Euros
Fundraising costs

The costs for fundraising were € 240.000 in 2015. This is € 46.000 more than budgeted due to sponsored services. CBF regulations state that donations through corporate sponsoring have to be accounted as both income and fundraising cost. As a result it appears that ChildsLife has utilised general income to fund advertising which is not the case as all advertising in 2015 was fully sponsored.

Management and administration costs

Management and administration costs ChildsLife incurs within the context of control and administration. In total these costs amounted to € 29.000 in 2015. This includes a percentage of salaries, office, accommodation and other general costs, including audit fees. The costs for management and administration are € 1.000 more than budgeted but decreased by almost € 10.000 over 2014.

Operating costs

In accordance with regulation 650 by Dutch CBF accreditation, ChildsLife allocates operating costs to programs, fundraising, management and administration costs.

Overview of distribution of operating costs
   Actual 2015  Budget 2015  Actual 2014
Salaries and social security 207.127 210.549 285.790
Other personnel 3.625 12.637 3.134
Travel and accommodation 17.937 11.061 12.795
Office accommodation 15.418 19.012 28.360
Office administration 30.961 32.466 35.190
Educational and informational materials 24.226 15.570 21.824
Other general expenses 40.384 19.398 47.384
Direct fundraising costs 198.667 157.512 182.682
Structural help 689.688 969.777 2.711.728
Total 1.228.034 1.447.982 3.328.887
      Amounts in Euros
Personnel costs

In 2015, the costs for personnel were € 78.000 lower than in 2014 due to one less staff position and a restructuring of staff working hours.

Additional operating costs

Additional operating costs were € 220.000 lower than budgeted and €2 million lower than 2014. As part of a warehouse restructuring program, Moldova was supplied with exceptionally large quantities of appropriate goods in the last quarter of 2014 and was still absorbing these goods during 2015. Further supplies were therefore held off and postponed to the first and second quarter of 2016.

The results and reserves for 2015

   Actual 2015  Budget 2015  Actual 2014
– Continuity reserve 52.711 -216 -112.738
– Designated reserves 82.113 0 -1.546.610
– Designated funds 10.971 0 -26.686
Total 145.795 -216 -1.686.034
Amounts in Euros
Continuity reserve

In 2015 the continuity reserve increased by almost €53.000 as a result of a combination of increased income and cost cutting measures.

Designated reserves

Designated reserves (inventory and tangible fixed assets) amounted to € 82.000.

Designated funds

In 2015, a total of €182.000 was received in designated funds of which a total of € 171.000 was released. Remaining funds will be released in the first quarter of 2016. 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 2015  Budget 2015  Actual 2014
Expenditure to projects/total income 70% 85% 186%
Expenditure to projects/total expenses 78% 85% 92%
Costs fundraising/income fundraising 17% 13% 14%
Costs management and administration/total expenses 2% 2% 2%

The ratio expenditure to projects in relation to total income is 70%. This indicates which part of income is spent on projects.

The ratio expenditure to projects in relation to total expenses is 78%. This indicates which part of total expenses is spent on projects.

In 2015 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, and somewhat above the standard of ChildsLife of 15%.

The ratio management and administration is 2%. This ratio indicates which part of total expenses was spent on management and administration costs. In 2015 this ratio is 2% and is lower than ChildsLife’s internal standard of 3%.

Expectations for the year 2016

Total forecast of income for 2016 is forecasted at € 1 million. Income is planned from several funding streams including direct mail, foundations and special events. Funds to programs in 2016 are budgeted at € 726.640 of which € 550.000 will be spent on structural aid. ChildsLife has budgeted € 12.000 for additional investment in communications, including new website and 20th anniversary activities.

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.