ZIMBABWE AIDS ORPHANS SOCIETY - Zimbabwen Aids-Orvot ry

ZIMBABWE AIDS ORPHANS SOCIETY’SFINANCIAL STATEMENTSREPORT BY THE BOARD 2011Operating environment and economicdevelopmentThe Society’s operations remained stable in 2011 despitethe prolonged uncertainty of the European economicsituation. The financial statements show that theSociety’s financing was based on well-established channelsand grants from development cooperation fundsawarded by Finland’s Ministry for Foreign Affairs (MFA).Disappointingly, €7,000 in payments such as membershipfees and sponsorship payments were not received,partly because the Society does not yet have an automatedbilling system in place. The operating year’s totalfunding, including donations in kind, came to €325,612,which was close to the budgeted sum of €326,000. TheSociety transferred approximately €14,000 over the originalbudget to Dzikwa’ support activities to cover higherthan expected education related costs.The Society’s balance sheet total was €42,607.50.The results for the financial year came to a surplus of€21,354.86. Capital at the end of the financial period totalled€9,844.78.Financing of activities and expenditureThe Society’s total income for 2011 (ordinary activities+ fundraising) in monetary terms came to €313,681,and donations in kind to €11,931, representing the totalvalue of goods in the container. Regular sponsorshippayments as a proportion of operating income increasedto 39% from 27% the previous year. Of the sponsorshippayments, 90% came from sponsors in Finland and theremainder from Germany, England, Scotland, Swedenand Belgium. There are significant clusters of sponsorsamong the staff of the Bank of Finland and the FinancialSupervisory Authority (FIN-FSA), the Odd Fellowsorganisation, freemasons in both Finland and Scotland,the staff of the Crown Agents in England and the GermanHarare e.V. Society.In addition to sponsorship payments, donations earmarkedfor the children’s welfare totalled €17,452, representinga good 5% of all income. The majority of thededicated donations went to the food fund, accountingfor €10,227, all of which came from Finland.General donations worth €20,181 came from Finlandand worth €7,433 from other countries. The Bank of Finlandcelebrated its bicentenary in 2011 and in honourof this made a donation of €12,000. In deciding on thedonation, the Bank took into account the personal sponsorshippayments made to the Zimbabwe AIDS OrphansSociety by the Bank’s and FIN-FSA’s staff. Other general,large donations were €4,000 from the Scottish RoyalArch Masons, €1,730 from members of the Odd Fellowsorganisation, and €1,000 from an individual sponsor inJoensuu, Finland.The Society’s fundraising is separated from its ordinaryactivities. Fundraising proceeds totalled €64,617 in 2011.Private individuals’ contributions to fundraising amountedto €46,686 in cash and to €11,931 in donations inkind. In addition to membership fees, the main donationscame from birthday and similar anniversaries as well asspeakers’ fees. Altogether eight Finnish donors raised€11,890 as gifts received on their anniversaries. Onelarge supporter was a Finn, resident in Germany, whodonated €20,739 in speaker’s fees. In addition, smallishdonations were received from a number of events,handicraft sales and collection boxes. Of the fundraisingincome, €12,391 was earmarked for the building project.No legacies were left to the Society in the reporting year.The Ministry for Foreign Affairs (MFA) project grant toorphans’ support activities totalled €90,000 and is recordedas expenses for ordinary activities. In contrast,€6,000 support received for reforestation for 2011 hasbeen recorded as fundraising income, as it is not directsupport for orphans’ education and general welfare andis separately earmarked.Cash donations accounted for 67% of all funding (54%in 2010), grants from Finnish Government developmentcooperation funds for 29% (44% in 2010) and donationsin kind for 4% (2% in 2010).26