<strong>ZIMBABWE</strong> <strong>AIDS</strong> <strong>ORPHANS</strong> <strong>SOCIETY</strong>’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 Minist<strong>ry</strong> 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 (ordina<strong>ry</strong> activities+ fundraising) in moneta<strong>ry</strong> 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 FinancialSuperviso<strong>ry</strong> 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 bicentena<strong>ry</strong> 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 <strong>AIDS</strong> 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 ordina<strong>ry</strong>activities. 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 Minist<strong>ry</strong> for Foreign Affairs (MFA) project grant toorphans’ support activities totalled €90,000 and is recordedas expenses for ordina<strong>ry</strong> 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
Financing of activities in 2011The Society's funding by source in 2011, total €325 6121% 1% 2%4%3%Minist<strong>ry</strong> for Foreign Affairs grantsSponsorship payments8%30%Special fundraising revenue, incl. salesGeneral donations12%Donations in kind to Dzikwa CentreDonations for foodDonations for health careDonations for Dzikwa Shelter39%Membership feesFinnish Government grants to the Society from development cooperation fundsGrant type 2006 2007 2008 2009 2010 2011 2012 2013 20141) MFA grant for €60,000 €60,000 €60,000 €100,000 €90,000 €90,000 €60,000 €50,000 €40,000orphans' educationand general welfaresupport programme2) MFA grant for€80,000kitchen construction3) MFA grant for international€15,000awarenesseducation in Finland4) Reforestation grant €6,000 €42,000 €20,000Total awarded €60,000 €60,000 €60,000 €115,000 €170,000 €96,000 €102,000 €70,000 €40,000The bulk of the funds collected by the Society are sent infull to the Dzikwa Trust Fund. Direct support transferredto Dzikwa totalled €272,500, of which over 93% wenton the children’s educational and welfare expenses; theremainder went on the Activity Centre and reforestationprojects. In addition, donations in kind valued at €11,931were allocated to the Dzikwa Activity Centre.Administrative expenses totalled €7,180, accounting forless than 3% of total expenses. Administrative and travelexpenses for key Finnish persons combined amountedto approximately 5% of expenditure.27
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