TEAR Fund FINANCIAL SUMMARY 2011
Highlights of 2010-2011 Year Dear Friends, When I consider TEAR Fund, I’m thinking of something much broader and deeper than an office block and staff. I’m including the TEAR Fund global family, our courageous partners in the developing world, and you our supporters, who by prayer and donations, stand together with us in solidarity as a Christian movement of faith and hope. All of us together are convinced the world can look different and be shaped by the values of the Kingdom. In other words, we are Christian optimists who base our optimism on the imperative of God to Isaiah, that we are all called to ‘Seek Justice and encourage the oppressed.’ (Isaiah 1:17). While some of our government funding is down, our donations from supporters, even when we consider the recession and the Christchurch earthquake, have remained strong. Among the highlights for the year reported was your generous help to grow micro-enterprise programmes in both Cambodia and the Philippines that have helped thousands of poor families to economic independence. Your support brought water for drinking and irrigation to farmers and villagers as well as literacy to poor women in central India. You have continued to rally behind us with child sponsorship as well as helping us fight the scourge of child sex trafficking in Asia. I was recently honoured to stand with Mongolian herdsmen and see the pride they had in their food security and planting programme you have helped create. You also overwhelmed us by giving almost $1 million to the flood victims in Pakistan. On their behalf, I want to thank you for your
Photo by Chuck Bigger, Compassion International
very generous support. The restructuring of the New Zealand aid programme has had some impact on our funding. Previously, we were essentially ‘bulk funded’ with an assured block grant. The new allocation is based on a more intensive single project focus that requires a demonstration of economic development. This replaces the decades-old ‘poverty alleviation’ perspective. TEAR Fund has always incorporated economic development into its programmes, but has and continues to hold, that poverty alleviation must be addressed first, rather than naively believing in a trickle down, that in reality, never reaches the poorest. TEAR Fund has also had a very strong policy of economic independence and self-reliance, and has never allowed more than 20% of its income to come directly from the government. In fact, rarely has it reached even 15%. That has meant that reduced government funding has not required the radical restructuring many other agencies have faced. In closing, I’d like to acknowledge the victims and people of Christchurch. Your courage inspired us all. For our part, we provided trauma counselling kits for churches and some respite funding for kids’ camps. What I am left with when I think of Christchurch is that, even with your own crisis, the people and your churches continued to demonstrate compassion for our global neighbours by your giving - awesome and humbling. Thanks again, for being part of a movement that is touching the lives of the poorest. In Christ whom we love and serve,
Stephen Tollestrup Executive Director TEAR Fund NZ
Chairman’s Report 2011 will be remembered as a year when disaster came to New Zealand. Often as supporters of international aid we can feel removed from the real people that we are helping. The Christchurch earthquake shattered feelings of security and gave us a very close understanding of the benefits of a supportive international community. Not only the practical assistance they brought, but the knowledge that others cared made a deep impact on us in New Zealand. Likewise, through our involvement with TEAR Fund, we are privileged to offer our support to others around the world. On behalf of the Board, I would like to thank our donors, churches, advocates and volunteers for their enthusiastic and enduring support during what for many has been a turbulent year. I can assure you that you are making an impact. I would also like to acknowledge our international network of quality partners who enable us to reach out and assist many people and communities globally. The Board and I would also like to thank Steve and the team for their compassion and devotion for the plight of the poor and oppressed and the creative and enthusiastic way they advocate on their behalf. I thank God for his calling, direction and blessing on the organisation and the impact it is having on many throughout the world. I look forward to the year ahead knowing that, through the challenges, we are all part of an organisation that is helping those who need it most. Gary Agnew Chairman TEAR Fund New Zealand
Photo by Chuck Bigger, Compassion International Cover image by Chuck Bigger, Compassion International
‌ If you spend yourselves in behalf of the hungry and satisfy the needs of the oppressed, then your light will rise in the darkness, and your night will become like the noonday. Isaiah 58:10
Our purpose: The purpose of TEAR Fund is to glorify God by extending His Kingdom in ministry to the poor, oppressed and disadvantaged, and to encourage God’s people in NZ to live out the values and principles of His Kingdom by sharing with those in need.
Photo by Chuck Bigger, Compassion International
Where TEAR Fund Works Community Development Projects from around the Globe
13
8
11
9 10
7
5
16
14
6
1
12
16 15
3
4
17 19 18
2
1 Colombia: Empowering the Disabled
2 South Africa: Integrated Livelihood
3 Zimbabwe: Foundations Farming
4 Malawi: Agribusiness Development Project
5 African Great Lakes Region: African Great Lakes Initiative
10 India: Sustainable Development Project Rural Livelihood Programme Zakhira Community Health Bhiwandi Slum Development
16 Philippines: Training Programme Indigenous Peoples’ programme Street Dwellers’ Project Trust Banks
11 Nepal: Anti-trafficking programme Enterprise Development Project
17 Solomon Islands: Truth & Reconciliation Commission
12 Bangladesh: Disaster Management support Women’s Credit Programme
6 Ethiopia: HIV/AIDS Awareness
13 Mongolia: Agricultural Cooperatives
7 Somaliland: Emergency drought assistance
14 Cambodia: Education Poverty-reduction Vulnerable Services Unit
8 Palestine: Leadership Development
9 Afghanistan: Community Development
15 Indonesia: Gitgit Community Strengthening
18 Vanautu: Community Development 19 Pacific Region: Ola Fou - Youth Training
COLOUR KEY: Literacy and Education Disaster Microfinance Health Water and Sanitation Agriculture Training and Income generation Peace Anti-trafficking
Income & Expenditure
2011
2010
10,060,836
10,554,240
NZAID - Development Grants
509,208
2,540,572
Private Donations - Undesignated
421,156
464,776
Other Income - Interest and Events
293,117
317,991
11,284,317
13,877,579
Programme Expenditure
8,806,422
10,317,277
Education and Advocacy
178,265
245,437
8,984,687
10,562,714
Marketing and Promotion
1,303,195
1,233,264
Administration
1,495,131
1,585,686
11,783,013
13,381,664
(498,696)
495,915
Accumulated Funds
480,191
480,191
Capital Replacement Reserves
229,495
229,495
Designated Funds
3,422,820
3,921,516
Total
4,132,506
4,631,202
Current Assets
6,051,534
6,365,663
Less: Current Liabilities
2,110,883
1,943,723
Net Current Assets
3,940,651
4,421,940
Fixed Assets
191,855
209,262
Total Assets
4,132,506
4,631,202
Income Private Donations - Designated
Financial Review
Photo by Ben Adams, Compassion International
The aim of a charity, especially one like TEAR Fund based on a biblical world view, is to endeavour to retain the minimum of funds, and maximise the return for our field partners. Our partners work on our behalf to demonstrate the love and compassion of Christ to those in desperate need. We try to balance the timing between receiving income and distributing that income to partners and ensuring that the time in between is as short as possible. However, there will always be reasons that make it difficult, and it was at our partners’ request that the distribution of funds last year were delayed, and released over a longer period than normal, especially for our projects in Haiti and Zimbabwe. We are pleased to note that we have now distributed nearly all of these funds during the 2011 year. Changes in government policy and focus have meant a reduction of government income from $2.5m in 2010, to a little over $500k in 2011. This had an adverse impact on expense ratios compared with last year. However, subsequent to year-end, TEAR Fund has secured two additional government-funded projects in Mongolia and Sri Lanka that over the next three to five years total $2.5m. It remains TEAR Fund’s policy that government funding should never be more than 20% of total income. This reduces the risk of us being exposed to fluctuations from any one source. In summary, while we sometimes operate in a difficult environment, we continue to give thanks for God’s provision through our supporters, and the commitment of our staff, volunteers, advocates and partners. Jon Horne General Manager
Total Income Donations Expenditure
Total Expenditure Surplus (Deficit) of Income less Expenditure
Statement of Financial Position Funds
Represented by:
Project Grants by Country Child Community Development Development Africa
174,571
Cote d’Ivoire Ethiopia
162,477
Disaster Relief
Microenterprise
Grand Total
2,806
64,075
403,929
52,115
52,115
362
362
Malawi
40,000
40,000
South Africa Photo by Ben Adams, Compassion International
Uganda
64,075
TEAR Fund’s Ministry 4% Community Development 17% Disaster Relief 9% Microenterprise 7% Child Development Projects 63%
1,230,142
Bangladesh
441,449
1,693,876
44,050
44,050 8,285
8,285
Cambodia
111,384
India
830,859
Philippines
261,197
Sri Lanka
14,000
80,839
192,223
5,357
850,216
311,203
572,400 6,837
6,837
Thailand
19,865
19,865
Central Asia
220,684 425,441
646,125
Afghanistan
179,304
179,304
Kyrgyzstan
500
500
Mongolia
11,380
Nepal
30,000
11,380 30,000 424,941
424,941
What was the money spent on?
Middle East
63,000
Administration and Overhead Expenditure 13%
Palestine
63,000
63,000 63,000
Other
325,250
325,250
Haiti
325,250
325,250
Pacific
51,008 113,762
Fiji
12,953
Education and Advocacy 1%
New Zealand
Programme Expenditure 75%
Vanuatu
A full set of audited financial statements is available on request email:business_services@tearfund.org.nz or by calling 0800 800 777
22,285
Bali
Pakistan
Promotional Expenditure 11%
70,000
70,000
Asia
64,075 174,571
174,571
Zimbabwe
Donation Income by Category
2,806
2,806
Somaliland
6,941
Samoa
9,400
174,170 12,953
71,274
9,400
87,615 42,488
42,488
31,114
31,114
South America
30,577
30,577
Colombia
30,577
30,577
Child Sponsorship
5,054,144
Grand Total
5,228,715
5,054,144 1,727,311 889,544
545,501
8,391,071
Where Kiwis Sponsor kids
Colombia
Haiti
Togo
Ethiopia
Philippines
Ecuador
Dominican Republic
Ghana
Kenya
Indonesia
Burkina Faso
Tanzania
Thailand
Uganda
Bangladesh
Rwanda
India
Children: 341 Children: 327
Nicaragua
Children: 250
Honduras
Children: 289
El Salvador Children: 221
Guatemala
Children: 606
Children: 85 Children: 303
Children: 298
Brazil
Children: 279
Children: 279
Peru
Children: 856 Children: 623 Children: 551 Children: 1270
Children: 400
Bolivia
Children: 621
Children: 402
Children: 278
Mexico
Total Children Sponsored
11,946
Children: 154
National Office PO Box 8315, Symonds St, Auckland 1150, New Zealand enquiries@tearfund.org.nz | 0800 800 777 | tearfund.org.nz
Children: 670 Children: 790 Children: 545 Children: 203
Children: 1305