The State of the Foundation

Everything has been going & growing really nicely at the Foundation since the beginning of the year, and this is probably evidenced best in how well both OkuhleMariana are doing at school. So whilst there are so many things to be happy about around here, there is also a few things that are cause for some concern.

When we released the new website last month, the aim was to start generating sustainable donations as soon as possible to continue fueling the growth of the Foundation. The reality is that 6 weeks into this new journey, this hasn’t quite panned out as we had hoped & planned.

Below I’ve included the income statement for the Foundation (1 January 2010 – 30 June 2010), which will highlight the issues we are experiencing. (We will be publishing our financial statements on a continual basis going forward now, as this is part of our policy with regards to being as transparent as possible.)

Income Statement (1 January 2010 – 30 June 2010)

INCOME
Donations: Website $4149.32
Donations: Adii $4360.58
Interest Received $139.83
Total Income $8649.73
EXPENSES
General Overheads $2661.29
Design & Development $2606.31
Rockstar Girls (Sponsorship) $6055.21
Total Expenses $11322.81
NET SHORTAGE -$2673.08

Rockstar Girls Sponsorships (1 January 2010 – 30 January 2010)

This is a summary of the sponsorships that are being distributed to the girls.

Books & Stationary $237.08
Clothing $154.53
Extra Mural Actitivities $71.33
School Fees & Tuition $4739.33
Transport $737.07
Misc $115.87
Total Sponsorship $6055.21

From the above statements, you will see that the Foundation has been operating at a shortage of $2673.08 for the first 6 months of 2010. You will also note that I’ve personally donated $4360.58 in cash to the Foundation to make the shortage seem more respectable, but in reality this fails to highlight the immense shortage we are already experiencing.

This is further complicated by the fact that our parent company, Radiiate, are absorbing some significant expenses in terms of office overheads & salaries (Marianne is currently the only employee on the books of the Foundation). Below is a revised income statement that includes these expenses and creates an even bigger shortage:

Revised Income Statement (1 January 2010 – 30 January 2010)

INCOME
Donations: Website $4149.32
Donations: Adii $4360.58
Interest Received $139.83
Total Income $8649.73
EXPENSES
General Overheads $2661.29
Design & Development $2606.31
Rockstar Girls (Sponsorships) $6055.21
EXPENSES (absorbed by Radiiate)
Office Overheads $1806.17
Salaries $12000.00
Total Expenses $25128.98
NET SHORTAGE -$16479.25

From above you will thus see that the Foundation is trading on a shortage of $16 479.25 USD for the past 6 months, which puts the longer term future & sustainability of the Foundation in doubt. I’m not trying to paint a bleak picture here, but unfortunately these are the significant challenges that we are facing at the moment, which we’re working very hard to overcome.

So we’d like to call on anyone who shares even a small bit of our passion for education & empowerment to become involved in the Foundation. We’re open-minded in terms of any kind of collaboration or partnership that you may suggest (the phrase “beggars can’t be choosers” comes to mind). And obviously, if you want to make a donation, those are always greatly appreciated! (Remember: I’m still matching every $1 you donate with a $1 of my own.)

Note: I used an average exchange rate of $1:R7.50 for the compilation of these statements.

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