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TABLE OF CONTENTSPageIntroduction 7The year 2007 at a glance 8PART I Background 9Highlights in the year 2007 10PART II Report 13SRI LANKAProject description- Location- Somawathi Nivasa – Holland House of Hope- Goal- Broadening of the main goal- Mission- Vision- Allocation of children- Indications for entering the home- Newly arriving and departing children- The grounds- The Somawathi team- Organisation- Social importance- Significance for the region- FutureThe concept- Infrastructure- Education- Care plan- Recreation/culture131313131313131414141415151516161819232628Example of a weekly status report 30Project goals and achievements in Sri Lanka- Realised in 2007- Notes- Non formulated, realised achievements- Project goals 2008- Project goals in the Netherlands323333343536THE NETHERLANDSOrganisation- Organisation structure- Establishment details- Registration- Bank details- Members of the Supervisory Board and procedures- Members of the Board and procedures- Somawathi Saparamadu Trust and procedures- Members of the Committee of Recommendation- Patroness37373737373840424343NGO Certificate 444

Evaluation- Evaluation cooperation Sri Lanka- Evaluation Board of Directors- Evaluation Supervisory Board- Evaluation corporation volunteers- Procedure of complaintsRisk management- Financial risks- Political and safety risks- Operational risks- Organisational continuity- Reputation risks- Liability BoardMarketing and communication- Strategy- Private sponsor relations- Relations with companies and institutions- Press relations- Communication and public relations- Donations and sponsoringFundraising- Fundraising strategy and costs- Fundraising 2007- Brief notes on received donations- Evaluation and conclusions45464849505051515151525252535353555555575858585960Preview 2008 61Epilogue 62With thanks to 63PART III Financial prognosis 2008 – 2012 67- Budget 2008 – 2012 67- Cash flow 68- Investments 68- Necessary budget for 15 years 68- Notes 69PART IV Annual account 2007 71- Balance sheet per 31 December 2007 71- State of income and expenditure 2007 72- Notes to the annual report and accounting principles 73- Notes to the balance sheet per 31 December 2007 74- Notes to the state of income and expenditure 2007 75- Other information 78Auditor’s report 79Contact details::Sri Lanka Orphanage FoundationP.O. Box 82261 ▪ 2508 EG Den HaagThe Netherlandsinfo@weeshuissrilanka.nlwww.weeshuissrilanka.nlGIRO: 3211, Den Haag5

INTRODUCTIONMillennium targets, rules and regulations, quality certificates, international co-operation… it seems unthinkable that thesesubjects would have such impact at a time that you just want to do something for the disaster-struck children after thetsunami in Sri Lanka.It started as a private initiative and resulted in an organisation with big public support. Recognition from many officialinstitutions, NGO status in Sri Lanka and a project that has been recognised by the Srilankan government as an examplefor its quality and operational standards, its facilities and the positive influence in the area.In comparison with all worldwide charity organisations Somawathi Holland House of Hope is a small project. However,something really special has developed on 30,000 m2 in the south of Sri Lanka with a very firm base.A complete children’s village where the children are raisedwith love and care to enable them to become a worthycitizen with a place in society when they are 18 years old.A village that – thanks to labelled donations – has facilitiessuch as a medical post, a nursery, a pre-school, twelveclassrooms for post-school tuition.In short, a children’s home that is a valued base in thearea. Even monks from the area attend the computerlessons.Thanks to hundreds of volunteers in the Netherlands,professional support of established corporations,donations from private people, and companies that wantto contribute to society, we have achieved our financialtargets for 2007.With the addition of € 111,590 to our free disposable capital, the financial year 2007 contributes to the durability of theproject. The Somawathi Holland House of Hope is a buddhist home with local staff that ensures the preservation of thelocal values, with financial support from the Netherlands!We hope to continue supporting Somawathi for a long time to come, together with you and to convert our hope intosecurity, protection and a future for these children!Marja van LeeuwenFounder7

THE YEAR 2007 AT A GLANCEFinancial Income - prognosis € 396,000Income - actual € 490,310Spent on project € 360,000Added to capital € 111,590Percentage of income own fundraising 2.97 %In Sri Lanka Number of in-home children 89Number of out-home children 114Number of awarded scholarships 28Number of children in education programme – 24 courses 354Realised in Construction and operation:• Nursery schoolMay 2007• Medical postFebruary 2007• Extension pavilionsDuring 2007Number of staff members 65In the NetherlandsFinancing of education programmeBy Touring Foundation for three years€ 50,000 per annum4th position and nomination with honour of TransparencyAward October 2007Renewed website August 2007Special website for children – Kids Corner August 2007Board change and portfolio rearrangement July 2007Fundraising Concert ‘Don’t leave them on their own’ December 20078

BACKGROUNDSri Lanka was only just recovering from a long civil war when theTsunami hit the country on Boxing Day 2004 and destroyed a largepart of the country. 35,000 People were killed and almost half amillion people lost their homes.The Sri Lanka Orphanage Foundation was officially established onthe 3rd of January. Main goal in the deeds of the foundation is to setup an orphanage in Sri Lanka for the long term, to help the childrenthat were hit by the disaster in the south of Sri Lanka.Number of children who lost a parent: 3,954Number of children who lost both parents: 979Within three weeks after establishing the Sri Lanka OrphanageFoundation, the Sri Lankan Trust Fund Somawathi Saparamaduproposed to start a joint-venture, offering a plot of land measuring25,000 m 2 with buildings on it. This plot later has been extended to30,000 m 2 .The Trust Fund Somawathi Saparamadu, established in Sri Lanka,is responsible for the land with the buildings. A Trust Agreementwith a masterplan embodies its responsibilities. It decrees that theTrust is responsible for managing the project locally.The Dutch foundation takes care of fundraising and keeps closecontact with the partners in Sri Lanka to ensure the progress of theproject.Child-labour in Sri LankaThe factsThe policy of the Sri Lankan government is aimed on helping children that are victims of the Tsumani by letting their owncommunity take care of them as much as possible, giving the community a small compensation in return. The main partof the children lives with so called extended Familys.In Sri Lanka more than 15,000 children live in-homes, state-run institutions and voluntary homes. 8% of these children isan orphan; more than 50% of these children is in a home because of poverty, the rest because of criminal behaviour,abuse or a handicap. Moreover, for at least 50% of these children the government has stated that living in extendedFamilys is much better than growing up in a home. In short, no solution within the community has been found for about7,500 children who were living in a home before the tsunami. Because of the tsunami this number has increased withalmost 5,000 more children hit by the disaster.Safety net functionOn request of and in consultation with the National Child Protection Authority in Galle the Sri Lanka OrphanageFoundation is raising funds in order to offer a safety net function for:• Children that cannot be placed within extended Familys or children whose living within an extended family did notwork out. A judge decides if the guardianship can be taken over by another party and which institute or caretaker willbe the guardian.• Children placed in an extended family programme, receiving financial support, after school care, education ormedical care.9

HIGHLIGHTS IN THE YEAR 2007January- The first perches in have been reserved as a result of this new sponsor proposition.By “buying” a piece of land with a surface of one perch on the premises ofSomawathi Holland House of Hope, the foundation is supported with € 2,500.- The Foundation had a stand on the Travel Event in a big conference hall inAmsterdam. 30 Volunteers represented the foundation with the motto: Help us tohelp.- In co-operation with NRV Holiday a special tailor-made trip for friends of theSomawathi is organised regularly. Sponsors but also other people that areinterested can visit the orphanage and attend special ceremonies.- Public broadcasting company TROS pays special attention to the foundation and theorphanage by inserting adoption forms in the weekly magazine (400,000 members).February- On February 15 the Medical Post was ceremonially opened by Mr Jos van Dalen ofthe Dutch association of Pharmacists. The ground floor has 6 treatment rooms, adentist room, a dispensary, vaccination centre, waiting room, toilets, administrationoffice and reception. On the first floor there is a storeroom, relax room for themedical staff and a room for physiotherapy.- On 16 February a Medical Camp is organised for the entire area. More than 800people have registered for free consultation and 300 spectacles were handed out.- Mr Peter Derks, architect at Twynstra Gudde, travels to Sri Lanka to check theinvestments and expenses of the new buildings and to certify these buildingstogether with a local architect. Every expense or investment has been registered in aBill of Quantities prior to starting the construction and has to be checked on the useof the right materials and the quality of the construction compared to the quotation.This is important for our accountants in order to being able to make the annualreport. All has been certified.March- Many needs or things we wish for are summarized in the document SponsorPropositions. Labelled donations to enable companies to invest in corporate Socialresponsibility through packages that are tangible, identifiable and tailor-made.- Media attention: thanks to an anonymous sponsor a television commercial has beendonated on the commercial television stations to support the project. GoedTV(www.goedtv.nl) also broadcasted a documentary about the Somawathi HollandHouse of Hope.April- On 14 April the Singhalese New Year is celebrated in Sri Lanka. Many festivities areorganised such as a cricket match, grandparents day en a visit from close relatives.- Four new children arrive that brings the total number to 77 children, 39 boys and 38girls.- A fulltime GP has started in the Medical Post. All in-home and out-home childrenhave been examined.May- All caremothers have been given a budget for the dinner expenses and take theelder children to the market to go grocery shopping. This way the children will learnthe value of money and to negotiate about a kilo of rice or vegetables. Surely it is animportant responsibility to enable the children to be independent when they are 18years old so that they can be self supporting.- On 23 May the nursery has been officially opened. Now Somawathi offers 70children from the area to attend the Montessori nursery and Pre School.- A few new members of staff have been hired : a maintenance manager, threeteachers for the nursery, four caremothers, a pharmacist, an assistant for theMedical Post and a female dentist.- Apart from financial, medical and dental help to the out-home children, we havestarted to extend the post school tuition programme. Mathematics, chemistry,English, examination training and computer lessons will start. A total of 21 classes10

are being developed, in line with age group and knowledge base of the children.- An interview with Marja van Leeuwen is published in the weekly magazine Margriet.- Many activities are being organised in the country. Schools, companies and privatepeople create ways to raise money for the Foundation.June- On 13 June the Foundation presents its Annual Report 2006. An extensivedocument that reports all activities and results that were achieved in 2006 and ourtargets for 2007. It is announced that the Foundation has generated € 611,927 infunds, of which a mere 1.73% was spent on expenses to raise these funds.A total of € 392,000 was transferred to the Somawathi Saparamadu Trust in SriLanka. This money was spent on the building of seven pavilions, a security post,building costs for the Medical post, the purchase of land for future extensions, a newgenerator, operational costs and monthly expenses for the out-home children. Theremaining sum of € 268,235, including € 65,710 interest, was added to the freedisposable equity that will be used for future development and continuity of theproject.July- Board member Daniëlle Appel has resigned from the Board of Directors and wasreplaced by Petra Brand. As an IT professional Daniëlle will continue to support theFoundation.- Tourism in Sri Lanka gradually gets better, after various attacks by the Tamil Tigers.Tourism is the most important source of income for the south of Sri Lanka. However,the political situation remains unstable.- Every day 178 meals are prepared in the kitchen of the Somawathi.Augustus- Treasurer Saskia Pahud de Mortanges and Probation Child Protection in Gallediscuss the progress, the needs and background of our investments in constructionand infrastructure. The Srilankan government has a policy to place children in fosterhomes as much as possible. However, the fact that this policy does not alwaysmatch reality was again confirmed. Therefore the government has asked us tocontinue building to maximum capacity to serve as a safety net for the children thatcannot be housed in foster homes. The Somawathi Holland of House is seen as anexample of all necessary facilities and with a regional support.- The Foundation was given 3,000 used spectacles at EyeClarify in Purmerend. Thespectacles will be handed out in the Somawathi area.- On 27 July the first foundation has been laid for the pavilions 12, 13 and 14 that willbe built.- Kids Corner, part of the website, has been launched. The purpose of the KidsCorner is to give information to children up to 12 years old and supports them bypresenting material they can use for a presentation.September- Every year 5 September Somawathi they is celebrated, in remembrance of MrsSomawathi Saparamadu who left the land after she died. The celebration is animpressive ceremony with monks chanting from sunrise to sunset and all children,staff and members of the Trust are present. At sunrise Armsgiving starts. All monksare offered some food that has been prepared by de cook, the children andcaremothers. Food is also offered to people in the surrounding villages.- On 16 September two new pavilions were officially opened, this time numbers 10and 11.- Just like in February, in September a Medical Camp was organised for people in thearea. Twelve doctors from Colombo came over voluntarily to give free medicalconsultations and medicines, and they did eye-tests. More than 750 patients weretreated and 350 spectacles handed out.- National Sri Lankan television Rupavahini spent two days in Somawathi to make afilm. In a news broadcast this film was published.11

October- On 4 October Margriets Better World was launched, a project for women with driveand commitment for charity. The Foundation will participate for a year in this project.- On 10 October was the election for the Transparency Award, for the charity projectwith the most transparent annual report. The Foundation was one of the institutionsto receive a special nomination because it proved that a young organisation is alsoable to present a transparent annual report. We achieved a fourth place on the list ofparticipants.- 31 Perches have been (virtually) sold.- The YouTube film of the Foundation was announced “Best Film” and was awardedwith a cheque of € 500.November- The local staff in Somawathi holds 65 people and all is well and according to planand expectations.- In the webshop new greeting cards are being offered. These cards contain drawingsmade by the children.- Preparations have started for the fundraising concert to be held in December. Manyvolunteers are busy with selling tickets, decorations technical matters and findingsponsors.- Mrs Rita Verdonk, former Minister in The Netherlands, visits Somawathi HollandHouse of Hope. She is one of the first sponsors of the project. She puts the firststone for the construction of the new pavilions and reveals a plaque at the Nursery.December- The monthly distribution of the newsletter is 6,000.- Somawathi houses 89 in-home children and 114 out-home children.- Very special for some boys is their visit to the big cricket match that was played inthe new stadium in Galle. The old one was destroyed by the tsunami.- The construction of pavilions 12, 13 and 14 is in progress and the deadline of theend of January will be reached.- Many activities in the country raise thousands of Euros.- 26 December: three years ago the tsunami struck.- On 30 December the fundraising concert takes place in a fully decorated church inLeiden. The lottery and auction raise € 92,500. Many celebrities and artists did awonderful performance.12

PROJECT DESCRIPTIONLocationIn the south of Sri Lanka, just 15 km east of Galle.The grounds are situated on a hill and include 30,000m2 of land, approx. 3 kilometresinland. A safe environment for children to grow up.Address:Somawathi Nivasa – Holland House of HopeSri Udayamitta Nahimi Mawatha, Idankissa Road,Harumalgoda, Habaraduwa, Sri LankaSomawathi Nivasa – Holland House of HopeThe name Somawathi means ‘love and security’. The grounds were donated to theTrust by the Saparamadu family in remembrance of Mrs. Somawathi Saparamadu. Theword ‘Nivasa’ stands for Home.Somawathi Nivasa has received National NGO (Non Government Organisation) statusfrom the Sri Lankan authorities.GoalTo ensure both the realisation and the long term continuation of ‘the largest family of SriLanka’ consisting of:- 150 children in-home in full guardianship- 150 children out-home in foster programme- 50 caremothers and care-grandmothersA Buddhist Home operated by local staff and financially supported from theNetherlands. The aims, individual responsibilities and legal conditions are settled in theTrust Agreement.Broadening of the main goalOn request of the local authorities and in consultation with the Sri Lankan Trust themain goal of the Somawathi Home has broadened. This extension in aid is also thanksto labelled donations. The facilities have been extended with:- 354 students that participate in 24 different courses- 75 pre-school children and toddlers from the region who attend daily the nursery- andpre-school- 28 scholarships have been awarded to Young students from the region to attendtertiary education- 980 patients have free access to medical careMissionTo provide a loving and trusting environment for children which enables them to growup and develop into healthy, responsible and educated members of the community.Together with the caremothers and a dedicated staff the children will have a chance togrow up in a large family community with respect for Buddhism and their Sri Lankanculture and roots.VisionOur common aim is to create a safe community where orphaned children (withoutparents or with one parent) live together in harmony. The aim is to offer more than justbasic needs, such as food and a roof over their heads, but to provide these children, inaddition to their regular school training, with different on-site facilities to improve theirfuture chances in life.The after-school education includes learning to read, write and speak in English,computer lessons, vocational skills, dance and music classes (to help overcome theirtraumatic experiences), hygiene, nursing, hospitality related subjects etc. Children fromthe surrounding villages can participate in the educational programmes.Also the medical treatments are provided to the region free of charge..13

Allocation of childrenAccording to the Ministry of Social Affairs, Sri Lanka’s southern province had 1369 fullorphans and 4697 half-orphans after the Tsunami. All children housed at the home areregistered and appointed to the home by court order. The National Child ProtectionAuthority(NCPA) is a governmental institution and responsible for the allocation ofchildren to homes and extended Familys in Sri Lanka. The NCPA keeps files on allchildren and inspects the homes.The general rules homes have to meet up to concern the provision of standards oninfrastructural facilities, housing facilities, number and quality of staff, extra educationalprogrammes, financial solvability to guarantee the continuation of the project, integrity ofthe managing Trust, medical services and hygiene.For further information and backgrounds visit:www.reliefweb.int and www.childprotection.gov.lkIndications for entering the home- The age range is set between 3 - 9 years old- As brothers and sisters will stay together, a flexibleattitude is necessary in implementing the age policy.Indications for not entering the home:- Mental or physical handicaps- Infected by an incurable contagious disease- Criminal recordNewly arriving and departing childrenNewly arriving childrenMost of the children are accommodated at the home by probation due to povertyreasons; often caused by the tsunami. Children sent out on the streets to beg, forcedinto prostitution or abandoned by their extended Familys.These children have hardly or not attended school at all and arrive at the SomawathiHome at the age of 8 , 9 years as illiterates. Whereas compulsory education isapplicable, the available school system offers no remedial teaching or extra facilities forthese children and they are expected to attend school according to their age group.For this group of children an educational programme has been developed to bring themas quickly as possible to the appropriate level to attend the regular school system.Departing childrenIt happens that a parent requests custody through a court order. When the courtdecides that the parent is capable of taking care of the children, this is granted. It sohappens that a mother has received custody of her two daughters after working hard forseveral years in the Emirates. The children are now sponsored in the out-homeprogramme and receive a monthly donation and participate in the afterschooleducational programme.The groundsThe plot of land is approximately 30,000 m2.It has been divided into:- Separated living pavilions for boys and girls- Centralized facilities- Education facilities- Sports- and activity centre- Medical care centre14

The Somawath teamAt present the home is run by a team of 65 staff members, including full- timecaremothers and part-time teachers. Under the inspiring leadership of Mr. LakiAbeysirigunawrdena – we call him Mr. Lucky - the daily activities are coordinated andeveryone is empowered with his/her own responsibilities.The Trust and the trustees have the overall end responsibility advised by a Board ofInspectors.The project manager regularly informs the Trust by sending weekly reports stating theupdated number of in-home and out-home children, number of employees, number ofchildren attending lessons , visits to the medical post, cases of illness, special activities,construction progress, etc. An example can be seen on page 30.OrganisationSocial importanceThe total number of people who have a direct or indirect interest in the SomawathiNivasa, has up till now never been defined. It is known that over 85 labourers are workingat the construction and renovation work.Others benefiting include the family members of the village children attending theMontessori pre-school, the family members of the staff, the out-home children and theirextended Familys, the students receiving scholarships and the children at theGovernment School.Everybody benefits from the prosperity and the many extra facilities offered.15

Significance to theregion in 2007FutureThe Sri Lanka Orphanage Foundation and the Somawathi Trust have guaranteed thefinancial support of the in-home children in full guardianship and the out-home childrenfrom the region to the government of Sri Lanka– the child protection authority – for theupcoming period; at least until the children are of age. Depending on the needs of SriLanka and after assessing the actual situation in future, it will be decided at that timewhether the home will be continued in its present form, or will have a new destination.16

THE CONCEPTInfrastructure Education Care plan Recreation/cultureReception/officesNurseryMedical care Sports and GamesDay-careVisitors centre/ Lobby Montessori Pre School Dental care Dance19 living pavilions Homework classes Vaccination programme MusicKitchen andEnglish lessons Psychological care Arts & craftsdining roomStaff quarters Computer lessons Hygiene andBuddhismEnvironmental careLaundryEducation Programme Daily careLibraryfor the regionSecurity Post Scholarships Personal developmentprogrammeSocial activitiesprogrammeMedical postCare for the Observing Monitoring SwimmingenvironmentTransportation Drama lessons Personal care ExcursionsSickroomSunday temple schoolSavings accountsFamily visitsObservation roomin-home childrenElectricity andwater supplyHobby’sVegetable gardenSavings accountsout-home childrenGrandparents daySports field andplay gardenVocational trainingHuman ResourceManagementParticipation in regionalactivitiesIn close cooperation with the National Child Protection Authority (NCPA).18

INFRASTRUCTUREMain buildingThe main buildings house:- reception and offices- visitors centre- lobby- Buddha statue- library- classroom for English lessons- classroom for computer lessons- recreation room, also serving as room for dance, music, table tennis and watchingTV- sick-room, also serving as the observation room for newly arriving children- sanitary facilities and showers- laundry- room of the head matron- room of the assistant matronLiving pavilionsIn total 19 living pavilions will be constructed. Each house completely furnished andsuitable for 8 children together with their caremother. Boys and girls live in separatehomes. The Buddhist caremother takes care of ‘her new family’. The caremother assiststhe children with their home work, teaches the children to cook, to clean the house anddoes the daily shopping. The children often call her ‘Ama’ (mother). At present 14 livingpavilions are ready and occupied. Several children are staying in the observation roomand will move into to a newly built pavilion once it is ready.The 5 future living pavilions will consist of:1 x two story, 1 x 3 story pavilion.The pavilions are durable, fit into the surroundings and all are interconnected with pathsand bridges.SecurityThe grounds include 30,000 m2 and are walled in.In total there are 4 entry-gates:1. main entrance near the main building2. the entrance especially for the newly built Medical Post3. a temporary side-entrance created for construction traffic only to improvesecurity on the grounds.4. an entrance only for pedestrians, giving access to the Montessori pre-schooland nurseryAt all the gates security staff is present. Near the main entrance a new security post hasbeen built. All entering and leaving visitors are registered at the security post. Thesecurity has been outsourced. The power generator has been placed next to the securitypost.Central kitchenLunch is prepared daily in the central kitchen. Nutritious and with variety often includingfresh fish! Lunch is prepared for all the in-home children and staff and the visiting outhomechildren who participate in the afternoon school educational programme.19

Main dining roomAll children have lunch together in the main dining room. All kids use their fingers ascutlery, in accordance with local custom. After finishing their meal the children eachwash their own plate.The caremothers prepare for their own ‘family’ breakfast and dinner in each pavilion.Somawathi Montessori pre-schoolIn the mornings (until 12.00 o’clock) this building is the Montessori pre-school. Over 40children attend the school from Monday till Friday- both children from the home andchildren from the village.Three pre-school teachers are responsible for the children. During afternoons the preschoolbuilding is used for after- school tuition.Somawathi nurseryAdjacent to the Montessori pre-school a nursery has been opened in 2007. The nurseryis daily attended by small in-home-children and children from the region.To all pre-school and nursery children a nutritious Sri Lankan meal is served in theclassrooms or outside in the pick-nick area.Somawathi MedicalThe medical post has a separate entrance and is therefore accessible for the peoplefrom the region. Medical and dental treatments free of charge are presently given toapprox. 980 people including:- in-homes of the Somawathi Home- out-home children and their legal guardians- staff members and their Familys- Montessori Pre-school and nursery children and their family- poor Familys from the areaThe medical post includes:- general practitioner- pharmacy- dental post- vaccination centre- policlinic by medical specialists (weekly shifts)Treatment roomsThe medical post has 4 rooms available for treatments. They are used weekly by theGeneral Practitioner and specialists on a part-time basis. Specialists include apaediatrician, eye specialist, psychologists and social workers etc.The rooms are equipped for minor treatments.Dentist postTwo days a week a local dentist is on duty at the medical post.A complete dentist chair including necessary equipment was donated by the Netherlandsand has been installed.Additional dental equipment has been bought locally to ensure maximum dental care.20

Vaccination centreRegularly children who are infected with contagious diseases such as the mumps orGerman measles arrive at the home. And thus we had to deal with the consequences…By now however, all the in-home children have been inoculated against the mostcommon child diseases.Pharmacy/dispensaryA basic stock of the most common medicines is available in the in-house pharmacy buton prescription only. Medication will only be issued after the diagnosis of illness.Chronically ill patients (e.g. diabetics, heart patients etc.) need to be directed to theGovernment Hospitals for further treatments and the issuance of ongoing medication.Medical campOn a monthly basis medical camps are organised in the medical post. Several specialistsfrom Colombo voluntarily offer their services and provide the people with free diagnosis.Medication is distributed free of charge.The distribution of used spectacles, collected in the Netherlands, is a great asset to thelocal people.PlaygroundThe most central spot on the grounds is the playground. Here the Montessori pre-schoolchildren play in the morning and after school it is used by the in-home children.Swings, see-saw, climbing racks and a huge sandpit all in the shape of the Sri Lankanmap! Also cycling, scooters and skaters are favourite activities on the hilly groundsduring afternoons.Power generatorThe power supply provided by the city council is insufficient to provide our grounds withthe required electricity. This results in frequent power cuts that can last many hours.To solve the problem an ‘environmental friendly’ power generator has been bought andinstalled. Excess power will be transferred to the council network.Reading cornerNext to the existing library a small section outside on the veranda has turned into areading corner. Here the caremothers can a read a story in Singhalese to the smallchildren and the elder children can sit down and read books themselves.Intercom facilityAll central areas, pavilions, the security post and the medical post are connected via anintercom system. A total of 25 intercoms have been installed, including the necessaryunderground cable work.21

Water managementThe grounds include two wells. One well is in use for construction activities. The otherwell has a water purification system installed and is used for drinking water.The pavilions have no hot water facility. In adult life, most children will most probably nothave access to hot water.Vegetable gardenAs an educational project the gardeners have turned a section of the grounds togetherwith the children into a vegetable garden. Seeds have been planted and daily thechildren sprinkle the plants. In 2008 the garden will provide fresh vegetables and fruits.LaundryThe washing machine is used non- stop. Sheets and towels are cleaned at the centrallaundry facility. Clothes and other laundry are done by hand by the caremothers and thechildren in their living pavilions.TransportationThe home owns one mini-van, fitted with extra security measures for transportingchildren.Also a car has been bought and is used as a company-car by the Project Manager. Thecar is used for normal commuting and can be used in emergencies.Shaded waiting spotFor tuk-tuk drivers and drivers of visitors a special shaded waiting spot has beencreated. It is located just opposite the main entrance and in full view of the security post.Nobody is allowed to walk around the premises unattended.Staff quartersThe staff quarters are housed on the first floor of the medical post and accessiblethrough a separate entrance. A male and female housing facility has been created.Separate sanitary facilities and changing rooms for the staff members are also includedin the building.Photo galleryThe walls out- and inside the home are decorated with portraits of the in-home children,displaying one large photo gallery. In the dining room there is a photo collection of allthe children together with their nametags.GardeningA lot of attention is paid to upkeeping the greenery on the premises.During most ceremonies a plant or tree is donated and planted.22

EDUCATIONEducation in generalThe Somawathi Home focuses a lot of attention on education and extra tuition,benefitting the in-home children and the children in the region.The overall development of the children is of utmost importance and will help themgain self-confidence and a better chance to succeed in the future.The government schoolDaily the school-age children attend the government school next door. The Trust hasexpanded the school with 8 new classrooms, sanitary facilities and school furniture. TheEducational level of the local school is poor to average. Teachers prefer to work in majorcities at schools with more facilities. Placement of adequate teachers proves to be aproblem for the Government. For this reason the Somawathi Home puts great emphasisto extra tuition.In school uniformsThe in-home children attend school – just as all the other kids- wearing uniforms.The smaller children are brought to and from school by the caremothers.The elder children (7 -10 years old) can walk home by themselves. Each child carrieshis/her own schoolbag with a drink and something to eat (some rice and fruit).The dux of the schoolSeveral children have scored very high marks in school exams. They belong to thebest of their class or even the ‘dux of the school’. Several children have beenappointed ‘class monitor’.This is partly due to the homework classes and extra lessons, but all in all it isextremely good for building up their self-respect and confidence.Montessori pre-schoolThe Montessori pre-school on the grounds is attended by both the in-homechildren as the children from the neighbouring villages. In total the Montessori preschoolhas 40 pupils in the age group 4 – 5 years old.The in-home children can make friendships with village children and the outdoor world.At the same time the pre-school facility is an asset to the poor villagers.In uniform to the Montessori Pre-SchoolNot all the village children have suitable clothing and proper shoes to go to school.To ensure that all the children are dressed equally, the home provides uniforms toall the young students attending the pre-school.23

English lessonsTo read, write and speak the English language well is regarded as “a ticket to thetop” in Sri Lanka. That’s why a lot of time is spent on English lessons.A new andvery practical textbook has been written recently including Cambridge standards.Watching English films and DVD’s also helps students developing their English.Extra tuitionA specific extra tuition programme has been developed according to age group andlevel.Every afternoon extra courses are given in subjects such as arithmetic, Singhalese,mathematics and science.Computer lessonsDuring afternoons, five times a week computer lessons are given to both the inhomeand out-home children. This includes basic knowledge, including ouralphabet, keyBoard practise and educational games. No doubt one day soon they’llknow all the ins and outs of Outlook Express and spend hours chatting on MSN!Certainly it is our hope they will!Homework classesSince the educational level at the government school is relatively low and Sri Lanka hasmany public and school holidays; it is of utmost importance that our children areinstructed with additional tuition. Schoolbooks have been bought and after school extrateachers and several caremothers help the children with their homework. Some illiteratechildren have arrived at the home. They follow a special tailor made programme.Sunday – temple schoolOn Sunday most of the children attend the temple school. In white clothes they walktogether with their caremothers to the temple to thank and study the work of LordBuddha. The children bring daily flowers to the Buddha statue and burn incense in thelobby of the main building.Out-home childrenAt present 114 out-home children receive financial support from us. Their guardianshave to spend the money on their education, clothes, shoes, daily needs andmedical care etc. The out-home children participate in the extra educationalfacilities, can have a meal at the home and receive extra school materials.ScholarshipWith our support a group of 28 older out-home children attend University or College.Medical School, Arts, Accountancy and Law Faculty are attended by our sponsoredstudents who could not attend University without the financial help of the Trust. Thephoto shows 5 promising students from the south, who have been selected to continuetheir studies in Colombo.24

354 students attending weekend classesAccording to age and level in total 24 courses have been developed for a group of 354students from the region. Courses are given partly at the Somawathi Home and partly atthe adjacent government school.Monitoring officerA ‘monitoring officer’ has been appointed to visit the out-home children and theirguardians on a monthly basis.The officer investigates and observes the school results, general needs and medicalrequirements. In a few cases the sponsorship was used incorrectly and had to bestopped.Bike riding and repairsLearning how to ride a bike is one matter, to know how to fix a broken chain or flat tire isanother. The cycle dealer can give some instructions and subsequently ‘the older boys’can carry the responsibility of the repairs and present the young ones with a proper bike.HandicraftsYoung and old are interested in arts & crafts. The small ones stick to simple creationsout of paper. The older children construct mini-canoes and statues. In the lobby all thearts & crafts objects are on display .Rice & curryThe traditional dish is rice & curry, usually prepared with fish, and is eaten according tocustom without cutlery , with fingers.In the living pavilions both girls and boys are taught by their caremother how to prepare ameal. Each night the children have to assist preparing dinner.Shopping at the local marketEvery Wednesday is market day at Habaraduwa. The children are taught to prepare ashopping list and a budget for the needed weekly groceries. Followed by personalpurchasing – together with their caremother- and negotiating over the price of e.g. a kiloof onions. Proudly they exchange the negotiated prices and return home with bags full ofgroceries. An excellent way to prepare for daily life in future.25

CARE PLANMedical and psychological careThe matron and assistant matron are responsible for the care of the children andsupervise the caremothers. A file is kept on each child. Some children need extra helpand coaching from psychologists, others need attention from social-workers. The inhouseGP of the Medical Post supervises their physical well being.Dental careTwice a week the dentist works at the medical post. Brush instructions, dental hygiene,fillings and preventive care.The dentist is consulted by the Somawathi in-home children and the people from theregion.Monitoring and observationsNew arriving children are first accommodated in the sick-room. This allows the childrento settle in, and have a medical check-up. The staff can also study and diagnoseabnormal behaviour.As soon as the children have adjusted well to their new home they are transferred tothe care of a caremother in one of the living pavilions..Hygiene and personal careOn top of fixed daily routines, including cleaning jobs in and around the living pavilions,a lot of attention is given to personal hygiene and care. Washed hands, clean nails,going the hairdresser, regular lice checks, daily showers, these are all basics that kidsare taught from day one.Savings accountsA savings account has been opened at the People’s Bank in name of each child (inhomeand out-home). Each account is monthly credited with Rupees 500 ( approx. €3,50) . When the children turn 18 years, they have access to the savings account andcan use the money for further studies, or to start of their own business.Human Resources programmeA social benefits programme has been activated for all our employees - presently 65.This includes free medical and dental help and medication. Job training programmes forthose who want to develop themselves and welfare fund to be used in case of long termillness etc. This programme encourages people to work happily for the SomawathiTrust.Grandmother’s and Grandfather’s dayRegularly, on weekends, the home opens its doors to elderly people living nearby. Thechildren enjoy the company of the elderly and like to listen to their stories. The elderlypeople have the opportunity to use the facilities of the home, join the children in theirnutritious lunch, and watch the children perform their latest dance and music.26

Care for animalsOn the adjacent sports field a puppy was wondering about, left alone by its mother. Thechildren took pity on the puppy and from now on the dog Toffee is a member of theSomawathi family.Care for each otherInstinctive or learned, all children take care of each other. The older children protectthe young ones and help them with the daily chores like homework, reading, leaning toride the bike, clock reading and sportsSeveral brothers and sisters have been reunited in the home and it is mollifying to seethe love and care they have for each other.Care for the environmentThe children are taught from early age onwards to care for the environment, not tothrow rubbish on the grounds, separate the waste and economize on electricity.As young as they are they are aware of taking care of the environment.27

RECREATION AND CULTUREDance and musicOne of the best ways to forget grief and regain confidence in life is dance and music.Twice a week the teacher instructs the children traditional folk dances and modern danceand music. Visitors are often treated to an unexpected show! The children can rehearsefor weeks and the girls spend hours behind the sewing machines to design and work onthe costumes.Sports and gamesEvery week sports and activities are planned. Running matches, kite-flights, cycling,scooters, table-tennis, balloons or just simple games.Not only the kids but the caremothers and pre-school teachers also join in the fun!Library and videosThe library has lots of English and Singhalese books. Most age-groups can findsomething interesting to read. The ‘older boys’ coordinate the ‘borrowing system’ ofthe books. The recreation room frequently shows Walt Disney films. These are bothfun to watch and also, because they are not subtitled, good to improve thechildren’s English! The older children also watch the news broadcasts.Swimming and swimming certificatesInitially water was one of their greatest fears. Thus they first take small dips ininflatable pools, then walks along the beach and then a dip in the sea which is greatfun. Regularly the children play in shallow and calm water and last year 18 childrenpassed the first swimming test and received a real swimming certificate.Excursions and outingsIn Sri Lanka celebrating means sharing. Celebrating together can please everybodyat the same time.Regularly the children are invited to join outings together with their caremothers andother staff members.Traditions and cultureSri Lanka has a rich culture and folk traditions. Every full moon is an auspicious daycalled Poya day. Every newly built house or building has to be opened properly at anauspicious moment. In the building palm leaves are burned, coconut milk is boiled and itbrings good luck when the milk boils over to the East. In remembrance of the late Mrs.Somawathi Saparamadu each September an all night pirith ritual is held.Religion and way of livingIn general the Somawathi Home is a Buddhist Home The children are brought up in thisway of living. Most of the children come from Buddhist backgrounds, as 85% of the SriLankan people is Buddhist.The non-Buddhist children are raised in this tradition but are not forced to attend templeschool. They can decide for themselves once they’ve grown up which religion or way oflife they prefer.28

EarringsMost girls in Sri Lanka, even when they are very poor, have earrings. All the morereason to make sure that all our girls have earrings. For the newly arrived girlsgreat fun going to Galle where they can select their first earrings!Photo albumsEvery child has his/her own photo album. The Dutch volunteers started thisinitiative and today the foundation brings hundreds of printed photos taken by theBoard members or visitors during previous visits.In due course each child has a volume covering his/her years at the SomawathiHome Holland House of Hope.Own cupBoardEach child has in the bedroom his/her own cupBoard for storing personal items, cloths,shoes, schoolbooks and the photo albums. Also their personal treasures are kept in herevarying from a string to an ice cream...The Somawathi music bandToday the Somawathi has a real “house band”. The children practise weekly under theinspiring leadership of the music teacher. Several children have learned to master aninstrument and at official occasions the band marches – headed by the standard bearer– across the grounds.Family visitsRegularly the children are visited by family members. Grandparents, aunts anduncles can pay a visit on weekends. The matron accompanies them around thepremises and sometimes they join in a meal in the dining room. Some children visitrelatives during school holidays.29

EXAMPLE OF A WEEKLY STATUS REPORT – by the project manager – part I30

EXAMPLE OF A WEEKLY STATUS REPORT – by the project manager – part IIThe weekly reports give us insight in the daily operations, education, medical care and the progress in general.31

PROJECT GOALS AND ACHIEVEMENTS IN SRI LANKARealised in 2007Objective Realisation Note *)Renewed plan for the arrangement of the new premises after the addition of the purchased Yesland, in order to finish the lay out of the children’s village with 19 pavilions.Completion of the construction of the remaining 10 pavilions in 2007. Partly 1Sufficient facilities to organise after school activities and education for both in-home and outhomechildren.Continuation of the construction of the nursery that will be finished mid 2007.Construction of a Buddha temple on the premises as soon as all other construction activitieshave been finished.Construction and arrangement of the sports field that will be used by both Somawathichildren and children from the area.Continuing investment in garden planning and greenery.Replacement of main entrance gate and side entrances.Installation of new cables from new generator and transformer.Maintenance of existing buildings.Expansion of staff, caremothers, technical staff, cooks, gardeners and office staff.Draw and implement an operational plan for the medical post. Besides diagnostic medicalservices and small treatments a dispensary and GP practice will be accommodated. Medicalcamps will be organised for people from the area. Make a plan for exploitation costs.Recruit medical staff: a GP, nurses, dentist, pharmacist, receptionist, administrative staff andcleaners.YesYesNo 2Partly 3YesYesYesYesYesYesYesPurchase of means of transport such as an extra minivan. Yes 4Draw up a Careplan for social, psychological and educational development of in-homechildren in all age groups. This includes ideas about the future integration of the children intosociety when they are of age and need to start living independently.YesExpansion of sports and handicraft activities, especially for the in-home boys. Partly 5Expand the extra tuition classes, mainly for out-home children a more extensive programmeis needed. The after-school and weekday classes have shown not to be the best times.Weekends and school holidays will also be used for these programmes, with not onlyEnglish and computerclasses, but also maths, science and chemistry for O-level students. Iftransport turns out to be a problem for out-home children the possibility of a shuttle servicehas to be considered.YesWrite a plan for elderly care in the vicinity of Somawathi Home and budget expoitation cost. No 6Environmental considerations will be taken into account with existing and newdevelopments.Yes*) see explanation on next page32

NotesNoteObjective1 Completion of construction of remaining 10 pavilions in 2007.In 2007 5 new pavilions were built (10 and 11 In 2007 zijn 5 nieuwe paviljoens gebouwd (10 and 11 werefinished in September; 12, 13 and 14 were finished in January 2008). Pavilions 15 and 16 are underconstruction and will be opened in May 2008, after which construction of pavilions 17, 18 and 19 will bestarted.The reasons for not completing the last 5 pavilions in 2007 are:I. optimisation of operational management in order to ensure the quality of care and manage the growthin numbers.II. purchase of an extra piece of land in order to further separate boys and girls in future, base don theadvise of the local Child Probation Authority.III. consultation with Probation about construction progress and expansion to avoid investments thatprove to be unnecessary in future.2 Construction of Buddha temple on the premises.According to local tradition, it is inappropriate to build a Buddha temple while construction work is still inprogress.3 Construction and arrangement of sports field.The sports field has been egalised and is used by the in-home children and children from the area. Avolleyball net has been set up; the field is used for several ball sports and cycling field. The rest of theconstruction has been delayed by a procedure to get all the necessary official licenses.4 Purchase of means of transport such as a minivan.Instead of a minivan a normal car was purchased. Under consideration is the purchase of a schoolbus thataccommodates the growing number of in-home children and can be used to offer transport to the out-homechildren and children from the area so extra tuition classes can be attended in the home.5 Expansion of sports and handicraft activities, especially for the in-home boys.Both boys and girls follow handicraft programmes. The ‘pieces of art’ are displayed in the visitors centre andregularly the children participate in exhibitions in Galle. The children have also set up a vegetable garden thatthey maintain themselves. In order to encourage the children even more in 2008 space will be made availableto function as a hobby room for various handicrafts. Sports and play activities are organised in weekends andschool holidays.6 Write a plan for elderly care in the vicinity of Somawathi Home and budget exploitation cost.So far an appropriate location that fits the criteria for running two separate projects has not been found. Bothcare projects need to be physically separated with shared facilities such as the medical post and cateringfacilities.At the moment the elderly care consists of free medical care and the support of elderly people from a nearbyelderly home. The elderly people are also actively involved in various activities in Somawathi.33

Non formulated goals, realised achievementsEducationEducation programmes24 Courses for 354 students from the area started in April 2007. The courses that are offeredin different levels include english, IT, maths and science. The students that will do O-levelexams are offered examination training and extra tuition.Homework classesExtra homework classes and individual tuition have started to pay extra attention to:o Talented children to pass their grade 5 exams and have an opportunity to enter a betterschool in Galle.o Children with big learning arrears (e.g illiteracy) in order to get them to a higher level.Sexual educationBoth boys and girls from the age of 11 have been given sexual education.CareMarket visitsAs a first step towards independence and responsibility, the in-home children are being taughtwhat the value of money is and how to run a household. The children make a shopping list,go to the local market with their caremother, negotiate about the prices and learn how to staywithin the weekly budget.Excursions – school tripsThe in-home children went on a few excursions in order to get to know their own country.Addionally, in close co-ordination with the Government School, all classmates went as well,so as not to give the in-home children special privileges compared to their classmates fromthe area. The school trips went to Turtle Farms, Kandy, Galle Fort, Weligama and the Buddhastatue of Matara.InfrastructureReading CornerA reading corner with singhalese and english books has been set up to encourage thechildren to read. Caremothers also use the reading corner to read stories to their children.Re-arrangement main buildingThe increase of staff has resulted in a re-arrangement of the office space. For the monitoringofficer and the office worker a separate room has been created and decorated.OrganisationInternal proceduresSJMS/Deloitte Colombo have written a report to restructure internal control procedures and toalign them with the Annual Report of the Foundation. (procedure 650).Mr. & Mrs. Saparamadu34

Project goals 2008Infrastructure • Completion of the five remaining pavilions to finish the objective to accomodate amaximum of 150 children• Implementation of the crisis plan that has been made in cooperation with localmanagement and staff• Construction and arrangement of the sports field• Finish infrastructure plans for main premises with special attention for:o sufficient playing facilitieso final garden lay-out and greeneryo construction of walking paths and connections between buildingso improvement of three main entrance roadso separation of medical post from living and playing areas• Lay-out and arrangement of newly purchased land• Construction of an open air theatre by using the natural height differences between theexisting land and the new land efficiently• Watermanagement:o Optimum use of the three water sources on the premises. A purification system will beinstalled to ensure the quality of the water and to use the water for different meanso Collection of rainwater in special reservoirs to be used in times of draught• A short-, medium-, and longterm Maintenance Plan will be made for maintenance of theexisting buildings in cooperation with Twynstra Gudde tob e implemented in the course of2008• Create a hobby room to encourage the children and learn them handicraft skills• Installation of broadband in the computer room as soon as they are availableCare • Optimisation and implementation of the Careplan, including a ‘child follow-up system’ andthe advise of the University of Amsterdam will be followed up• Focus on safety and security• Recruitment of qualified caremothers• Plan for elderly care: look for opportunities to purchase nearby land and make it fit forelderly care• Look for additional needs in the area for medical careOrganisation • Expansion of local management and creation of a management team with assigned areasof responsibility (care, medical, education, etc.)• Focus on environmental aspects• Evaluate and adaptation of the operational manual en guidelines for management andstaff• Development of activities that will decrease the negative reputation of government-runorphanages in order to attract qualified staff• Implement administration software to improve management information and to translatethe information to the concept of the project and information about various cost centres35

PROJECT GOALS IN THE NETHERLANDSFormulated goals 2007Apart from all fundraising activities the Foundation intends to bring more focus in the overall organisation of theFoundation. The following aspects will be addressed:• Fundraising as main responsibility.• Implement structured governmental procedures.• Increase efficiency and effectiveness by creating teams and spread resonsibilities.• A newly formed team of master students at the Erasmus University will researchstrengths/weaknesses/opportunities/threats of the Foundation and advise on a structural long term vision.Realised goals 2007• Fundraising targets have been amply realised.• Targets have been realised by:o Increased assets than estimated from interest on own capitalo Higher income from own fundraisingo Realisation of fundraising costs lower than estimated (for details see Financial annual report).o Effective public relations and communications strategy.o The commitment and fundraising activities of all volunteers.• Governmental procedures have been partly implemented by the Board by:o A change of membership of the Board of Directors and distribution of responsibilities.o Recruitment of professional volunteers with various expertise en specialised companies.o Implementation of the recommendations of the Erasmus University students.Goals 2008• Realisation of the budgeted fundraising targets.• Publicity to reach the general public• Effective fundraising strategy with the goal:o Companies that are willing to commit their sponsorship for a number of yearso Higher percentage of funds raised by companieso Increase of the number op periodical notarial donationso Retention and increase pf private sponsors• Recruit new Board member because of vacancy• Newly formed Committee of Recommendation• Evaluation of the Board of Directors by the Supervisory Board• Research Erasmus University on EU- grants• Research Erasmus University on conditions and consequences of the CBF code36

ORGANISATIONOrganisation structureEstablishment detailsSri Lanka Orphanage FoundationP.O.Box 822612508 EG The Hague, The NetherlandsSomawathi Saparamadu TrustNo. 129 Dutugemenu StreetDehiwalaSri LankaSomawathi Nivasa – Holland House of HopeSri Udayamitta Nahimi MawathaIdankissa RoadHarumalgoda, HabaraduwaSri LankaRegistrationThe Netherlands• Chamber of CommerceThe Hague, nr. 27273221• Registration nr. Dutch Tax Services section 24 – 24269• CBF Verklaring van geen bezwaarRegistratienummer: 2167/06Sri Lanka• FL-109304‘Voluntary Social Services / Non-Government Organisation’• Somawathi Saparamadu TrustRegistration nr. 87358Bank detailsThe NetherlandsBank:Beneficiary:Account number:Place:IBAN:Swift/BIC code:Sri LankaBank:Beneficiary:Account number:Branch number:Swift/BIC code:Postbank Den HaagStichting Weeshuis Sri Lanka3211The Hague, The NetherlandsNL28 PSTB 000 000 3211PSTBNL21People’s BankNugegoda – Sri LankaSomawathi Saparamadu Trust1650108450174PSBKLKLXA023Websitewww.weeshuissrilanka.nlwww.somawathihome.com37

MEMBERS OF THE SUPERVISORY BOARDMr. Ing. E. JongepierChairman – 1959Appointed on: 2 June 2005Managing Director Twynstra GuddeMr. C.A.C.M. SchellensSecretary – 1948Appointed on: 2 June 2005CEO - De Lage Landen InternationalMr. Drs. J.D. van DalenBoard member – 1957Appointed on: 2 June 2005Secretary of the Board of KNMP;Pharmacist in BreskensSide Activities:Chairman Openbare Basis Scholen Zeeuws VlaanderenChairman Marnixring Sas van Gent (cultural association)Mr. K. van DoodewaerdBoard member – 1947Appointed on: 2 June 2005Former Director Omroepvereniging TROSSide Activities:Board member Algemene Raad “Onze Luchtmacht”Board member Fonds SlachtofferhulpBoard member Stichting Instandhouding NieuwspoortSupervisory Board member Stichting Eigen GezichtMr. W.L. Boone R.A.Board member – 1945Appointed on: 30 November 2006Former partner Deloitte - Register AccountantSide Activities:Board member Stichting Vrienden EffathaCommissioner Van Tour De Groot Groep B.V.Commissioner Depa Holding B.V.District manager PUM of VNO/NCW38

PROCEDURES OF THE SUPERVISORY BOARDMeeting frequencyAgendaChangesInforming the BoardAttendanceActivitiesInterventionsImprovementsCompensationThe Supervisory Board has to meet in accordance with the regulations once a year.Presently the frequency is twice a year to ensure a close involvement with thefoundation.Topics discussed at the Supervisory Board meetings:• Finance and assets planning• Master plan 2005-2010• The monthly progress reports• The long term ability to become self supporting of the home• Continuity of the Board of Directors of the foundation• Care plan and long term vision and goals• Advise on fund raising strategy• Evaluation and future of Board of DirectorsNo changes have occurred.The Supervisory Board is informed by:• Monthly progress updates• Quarterly Financial review• Newsletters• Personal visits to the project in Sri Lanka• Realtime fact updates• Individual conversations and meetingsAll members of the Supervisory Board are present at the meetings. With the externalaccountant separate meetings are held to discuss the financial strategy, administrationand control.Next to the supervisory role of the members of the Supervisory Board the individualmembers are closely involved with developments and activities. This was implementedby:• Using their personal and professional networks• Visits to Sri Lanka• Supporting various marketing and communication activities• Visits to ‘the kitchen table’• Co-ordination of the research by Erasmus UniversityThe Board has intervened with the founding of the Sri Lanka College Foundation, anew separate foundation aiming to start a college in Sri Lanka. The Supervisory Boardhas given – out of precaution - a negative advice for this side activity.No structural advice or remarks were given for improvement.The members of the Supervisory Board are not compensated and do not receive anykind of reimbursement.39

MEMBERS OF THE BOARDMrs. Marja J. van LeeuwenChairman/initiator – 1953Appointed on: 3 rd January 2005Former teacher Marketing and CommunicationSide Activity:Trustee Somawathi Saparamadu Trust ColomboMrs. Saskia J. Pahud de Mortanges-KroesTreasurer – 1959Appointed on: 2 nd of March 2005Former Director of Road Air TravelSide Activities:Trustee Somawathi Saparamadu Trust ColomboBoard member Vrienden van het Reizend MuziekgezelschapMrs. Marianne E.J. van den BoschSecretary – 1958Appointed on: 2nd of Marcfh 2005Personal Assistant to the Legal DirectorShell International B.V.Mrs. Petra M. BrandBoard member – 1962Appointed on: 10 June 2007Independent interim manager, trainer and coachMrs. D. Frederiek van Lookeren-HoogeboomBoard member – 1969Appointed on: 10th of November 2005Former Management Assistant40

PROCEDURES OF THE BOARDThe Board is also responsible for the coordination of all operational tasks. A team of volunteersand professionals assists the Board. Daily the Board members communicate with each othervia email. Once every two months official Board meetings are held.Cost controlControl systems andmeaningful analysisCompensationRecruitment andappointment of newBoard membersThe foundation is very keen on limiting all expenses. Office is held at ‘the kitchen table’ andevery Board member works for the foundation at home. This eliminates office rental and otherexpenses. Up to now the foundation managed to have almost all activities sponsored orproducts and expertise were provided free of charge, except most of the travel expenses to SriLanka and (limited) marketing costs.Due to the short communication lines within the organisation, the frequent meetings andplanning of activities, managing the foundation is relatively simple.Planned activities are frequently analysed and adjusted if needed. The functioning of the Boardand her members is discussed and evaluated every 6 months.According to the foundation’s Articles of Association the Board does not receive anycompensation. Yearly the Board Members can visit the project in Sri Lanka once on theexpense account of the foundation; to ensure commitment and motivation, to stay up to datewith the progress and development of the project and to maintain contact with the Sri Lankanpartners.Initially the Board of Directors was appointed on the basis of availability and motivation. In2007 a change took place due to personal reasons. Now when a new member is appointedmanagerial and governing experience is a condition, besides availability and motivation.ResignationprocedureThe Board of directors does not have a resignation procedure. The memebers are statutoryappointed, or appointed by the Supervisory Board. In 2008 a resignation procedure will beimplemented, with a memebership period of maximum 5 years.41

SOMAWATHI SAPARAMADU TRUSTMr. W.A.S.D. SaparamaduTrustee and ChairmanSun of the late Mrs. Somawathi Saparamadu,who donated the land and buildings to the TrustMrs. R.M. Saparamadu“Founding Mother”Trustee and member of the Management TeamResponsible for education, local culture, traditions and valuesMr. M. SaparamaduTrustee and member of the Management TeamResponsible for construction work and infrastructural mattersMr. N. IlleperumaTrustee and member of the Management TeamResponsible for financial management and human resourcemanagementMr. H. GamageTrusteeResponsible for contacting the official institutions in Sri Lankae.g. probation and ministry of Social AffairsMrs. L. BotejuTrustee and secretary of the TrustResponsible for education and educational facilities for in- andout-home childrenMr. Th.H.M. BroekeTrustee appointed by the Sri Lanka Orphanage FoundationResponsible for quality control and investmentsSide activity:Advisor NRV Holiday42

Mrs. S.J. Pahud de Mortanges-KroesTrustee appointed by the Sri Lanka Orphanage FoundationResponsible for quality control and investments, implementationof care plans and general follow upSide activity:Treasurer Sri Lanka Orphanage FoundationMrs. M.J. van LeeuwenTrustee appointed by the Sri Lanka Orphanage FoundationResponsible for quality control and investments, implementationof care plans and general follow up.Side activity:Chairman/initiator Sri Lanka Orphanage FoundationThe Trust in Sri LankaThe Trust is governed by Sri Lankan Law. The grounds and buildings belong to theSomawathi Saparamadu Trust. The Trust Agreement between the SomawathiSaparamadu Trust and the Sri Lanka Orphanage Foundation stipulates the terms,conditions and the joint responsibilities of the agreement. The Trust Agreement isdrafted under supervision of SJMS Deloitte and is registered in Colombo under nr.87358.The Trust meetings are held four times a year in Sr Lanka. Meeting topics are progressof the project, financial management, investment requirements, quality of care andoperational and infrastructural matters. Communication about running matters is almostdaily through telephone and/or email.Side activitiesTwo members of the Board of Directors are members of the Trust organisation in SriLanka as well. This combined function is meant to safeguard the interests of the Dutchfoundation, to have insight in the operation and share decision making responsibilitiesin operational and Financial management of the project in Sri Lanka. To safeguard thevision and mission of the project in case of emergency or unforeseen circumstances,Mr Th. H. M. Broeke has been appointed as trustee.CompensationRecruitment andappointment trusteesCommittee ofRecommendationThe Trust Agreement stipulates that none of the trustees will receive any form ofcompensation, with the exception of travel- and accommodation expenses of the Dutchtrustees when visiting the project in Sri Lanka.All trustees are appointed for a period of three years without the obligation to resignand a silent continuation of the membership. In 2007 no changes in the Trustmemeberships have occurred. In case of a vacancy, a new candidate will be proposed..MEMBERS OF THE COMMITTEE OF RECOMMENDATIONDrs. W.J. DeetmanMayor ofHaaglandenMr.. K. van der GraafTV hostMr. H. VergeerFormer World Championspeed skatingPatronessMrs. Pia DouwesMusical star43

Registration NGO Status44

EVALUATIONThe Sri Lanka Orphanage Foundation is a relatively young organisation. Characteristics are:• A flat organisation with short communication lines• An active Board, providing the strategy, setting out and carrying out the policy• An involved supervisory Board, that regularly advises, controls and evaluates• A team of volunteers and professionals for advise and support• Active in fundraising and a careful and responsible way of spending money• Closely connected to the development and operational management in Sri Lanka• Formal and active participation as trustees within the partner organisation Somawathi Saparamadu Trust• Transparency of all activities and investmentsBeing a contestant in the Transparency Award has resulted in ending fourth in a Top 10 category of ‘’medium sizefundraising organisations’’ and a honourable nomination. Participating in this contest has also offered us someopportunities to improve our organisation and the ways of reporting.Short explanation of the Score Transparency Award 2006:SubjectGoal, strategy and policyGovernanceFundraisingNon-financial resultsFinancial resultsFuture informationCommunication withstakeholdersCommunication valueAnnual ReportTimeliness andavailabilityImprovementsIncluding an evaluation, learning points and possible improvements;An action plan with how the improvements can be realised.Giving indepth insight in the management of funds;Ancillary functions and their added value / results for the organisation;Evaluation of functioning and procedure of reappointment.Codes of conduct are open to examine;Explanation on the balance between income and expenditures;Analysis on the costs in comparison to last financial year;Mentioning of key numbers about fundraising.Connection to the financial realisation with respect to the project goals.Own standards about expenses own organisation;Connection of function / own means with other social standards (directive reserved means).Verbatim of financial prognoses.Mentioning of key numbers about contributors and stakeholders;Giving insight in the involvement and satisfaction of the volunteers.No remarks.Availability good; timeliness needs to be improved.45

Being a young organisation we are learning each day, adjusting our plans and evaluating regularly our strategic choices,the policy and internal management systems in order to improve them and to use them in our procedures andmanagement information.On 1 October 2006 the CBF, Central Bureau Fundraising, has awarded the Foundation the ‘declarationof no-objection’, that is valid from 1 October 2006 until 1 April 2008. After this period we will consider toapply for the full CBF-mark.The CBF-mark of no-objection is granted to young foundations, that fulfil the constituted ‘conditions650’ and guarantee a responsible way of fundraising and spending funds.Although the Sri Lanka Orphanage Foundation – for financial reasons – is not associated with branch organisation VFI,we do subscribe to the code of conduct of the Commission Wijffels and the advise of the commission is part of our policy.EVALUATION COOPERATION SRI LANKAWorking methodThe responsibilities of the Trust have been described in a Trust Agreement. This agreement has been made up withsupport of the legal departments of SJMS/Deloitte and as such has been deposited in July 2005 in Colombo. The Trustconsists of nine trustees, all of them without a salary. The complete Trust meets four times a year in Colombo. Besidesthese meetings the Sri Lankan trustees meet monthly with the operational management of the Somawathi Home.• The basis of cooperation is embodied in the Trust Agreement.• The principles, the mission statement, and the goals are all described in the Master plan 2006 – 2010.• In principle the policy is based on demand and accordingly investments are carefully judged, analysed, if necessaryreviewed and controlled.• During Trust meetings subject of discussion are, among others:-Investments in buildings, infrastructure and operational matters-Progress of construction-Overall operation and progress-Care plan and future of the children-Educational and medical provisions-Personnel and organisation-Wishes and needs in cooperation with Probation (Child Protection)-General matters (e.g. insurances, environmental aspects, water management).• The expansion and construction of the planned 19 pavilions. In close cooperation with Probation we stipulate towhich extent the construction of the pavilions are needed and a valid investment• Construction investments are worked out based on a “Bill of Quantities”, submitted and judged by Twijnstra & Guddeand yearly certified on quotations and materials.• The operational management team within the Trust instructs the management on location (Somawathi) in matters ofexecution of policy and progress on care and education.• Weekly all Trustees receive an elaborate report of the project manager on the progress. This weekly report has afixed format.• Four times a year SJMS/Deloitte submits financial reviews.Project monitoring & governing process• The basis is the Masterplan• Weekly reports• Minutes and progress reports. Quarterly meetings on locationEvaluationThe past three years the Trust has concentrated on the realisation of the project and developed all necessary aspects ofthe infrastructure from care to education and recreation.Initially the activities were aimed on the construction, the personnel, contacts with the authorities and Probation. All thishas resulted in a very fast realisation of the project, in receiving all the permits and finally in the fact that Somawathi isconsidered as “the school example” by the authorities. Moreover, this year a lot of attention has been directed to care interms of physical and mental wellbeing of the children, expansion of education facilities, training of the staff and offeringmedical care.This year the Board and the Supervisory Board have discussed the range of services offered by the orphanage, forinstance concerning medical care, and how to keep the balance between the services for the orphanage itself and theservices for the area.46

Considering the cultural differences, the concepts and attitudes of the Sri Lankan, and the many bridges that have beencrossed between the Dutch efficiency and project plans, the success of the project and the way the project has beenmanaged is remarkable. The introduction of realistic and specific areas of results is not likely to have any effect and doesnot fit into the working method of Sri Lanka. However, the Sri Lankan do support the idea of improving the quality and thefinancial consequences of these improvements.Points of improvementSubjectExpansion of care andeducationEnvironmental aspectsMid- and long term maintenanceplanExpansion management teamAppointment of treasurer in theTrustAvailability Annual Report/Auditfrom SJMS/Deloitte ColomboImprovementContinuous focus on social/psychological development; development of skillscaremothers.Create awareness of staff and children.In order to keep the level of quality of all buildings and infrastructure.To reduce the span of control of the project manager.To avoid any conflict of interest.To publish the Annual Report of the Sri Lanka Orphanage Foundation more timely.Learning pointsWhile our activities were initially based on a pull strategy, the policy has shifted towards a push strategy, in order toadjust to the needs and demands of the local authorities; within the limits of the available funds.47

EVALUATION BOARD OF DIRECTORSWorking methodThe Board of Directors of the Sri Lanka Orphanage Foundation consists of 5 Board members. All members do not getany form of payment and work on a voluntary basis. The Board members define the strategy and operational policy andexecute these as well. The Board is supported by:• The Supervisory Board• Professionals from corporations• Students of the Erasmus University and University of Amsterdam• A team of volunteersProject monitoring & governing processAll Board members are in contact almost daily about the status of all running activities. Board meetings take place everytwo months on average. In the meetings the following subjects are discussed and decided on:• Strategic choices about fundraising and marketing• Status and progress of running fundraising activities• Marketing and communication• Public Relations• Financial reviews• Labelled donations, spending and reporting• Progress reports of operational matters in Somawathi• Tasks and responsibilities, availability and so on• Evaluation of effectiveness of the activitiesReporting takes place through minutes, regular progress reports and action plans.EvaluationThe Board of Directors has put a lot of energy in the project and is very proud of everything that has been achieved. Thegrowth of the project inevitably asks for a different kind of professional governance of the project with which thefoundation is entering a new phase. Board members are appointed on the basis of drive, competence, motivation andavailability. The new phase of further professionalism will result in changes in the composition of the Board.The activities of the Board have been aimed at realising the defined goals. Determination of specified targets has beendiscussed by the members but has not been effectuated because of a lack of capacity or priorities.Points of improvementSubjectDetermination of specific areas of resultThe division of areas of responsibilityMaking a long-term planning for fundraisingImprovementIn order to plan, do act in relation to specific targets; measure andevaluate.To create more effectiveness and efficiency within the Board.To formulate a market approach, translated to target groups,targets, means and planning.Learning pointsWhile our flying start was marked by ad hoc decisions – and not without success – the foundation, as already has beensaid, now more and more enters the phase of professionalism, with time for self reflection and a measurable way oforganising and management.EVALUATION SUPERVISORY BOARDWorking methodThe members of the Supervisory Board meet twice a year. This Board has five members, all of them from bigcorporations, none of them receive any form of payment. The Supervisory Board has been formed on a basis of variousexpertise in order add value to the foundation as much as possible.Statutory it is defined that the Supervisory Board meets at least once a year. However, the Supervisory Board prefers tobe in close contact with the developments and meets twice a year. The Supervisory Board is flexible about the meetingschedule and meets more often if necessary.Some members of the Supervisory Board have visited the project in Sri Lanka, on their own initiative and expense.48

During the meetings the subjects of discussion are, among others:• Financial status, financial prognosis, fundraising and asset planning• Annual Report• Long term vision concerning care, education and future of the children• Activities in relation to desired scope of services rendered/offered by the orphanage• External communication• Method, composition and continuity of the Board• Research and research suggestions to develop and a long term vision of the orphanage and fundraising• Nomination of new Board members• Progress reports, in relation to the Master plan of the orphanage.In 2007 no interventions have occurred and the Supervisory Board is pleased with the achievements.Project monitoring & governing process• Meetings of the Supervisory Board > twice a year• Progress report > quarterly• Minutes and activities plan > quarterly• Financial reports on Sri Lanka Orphanage Foundation >quarterly• Financial report on the Somawathi project > twice a yearEvaluationIn addition to meetings the Supervisory Board has close contact with the Board of Directors. This happens either oninitiative of the Supervisory Board or on initiative of the Board.Initially the attention of the Supervisory Board has been aimed at creating the necessary conditions to establish theorphanage. With the successful building of the orphanage the attention of the Board has shifted to safeguarding theorphanage on the long term, financially and in terms of management. With regard to the long term goals of theorphanage the Supervisory Board and the Board of Directors in 2007 have shared their views on the requiredcomposition of the Board of Directors, in terms of both quality and quantity.In addition, in the present situation the Supervisory Board focuses on the necessary conditions to ensure that thechildren will get a good position in society and to make sure that the children are being monitored even after they haveleft the orphanage, in principle at the age of 18.The progress reports, the annual report and the regular communication allow the Supervisory Board enough possibilitiesto monitor and evaluate the activities of the Board of Directors.Points of improvementConsidering the phase of development of the orphanage at this moment, with different professional capabilities neededin order to manage the orphanage, the supervision will be directed to following the progress of middle and long term yearplans. However, this requires a continuous balance between the “western” and “eastern” way of concepts and attitudes.While at the same time the present flexibility of the Board of Directors needs to be safeguarded.Learning points• More focus on managing the middle and long term and year plans• Continuous and careful consideration of the activities of the orphanage and the required scope of the orphanage• Further development of a long term vision of care, education and the future of the childrenEVALUATION COOPERATION VOLUNTEERSIn the cooperation with third parties the following distinctions have been made:• Professionals• Ambassadors• Volunteers• Sounding BoardProfessionalsA team of professionals is available to render expertise when needed. Regularly we turn to the professionals using theirexpertise. Many professionals have visited the project, and individual meetings held on a variety of subjects. Advisevaried on the subject of assets, design and creativity, web design, requests for subsidies, organisation andadministration, construction and project supervision and all different kinds of support. The group of professionals is animportant group, with whom we keep in contact very frequently.49

AmbassadorsIn 2005 the phenomenon ambassadors started. A group of very motivated contributors were divided per region tonetwork in their own area, to give presentations and to organise activities. The involvement and drive of most of theambassadors is decreasing. Although quite a few of the ambassadors are still actively involved, most of theambassadors have a passive attitude. In 2008 we shall consider whether to give this phenomenon a new impulse orleave it.VolunteersIn addition of the group of professionals the foundation has the support of a group of about 20 volunteers. All of themdeeply motivated and devoted to the project. Most of the volunteers have visited the project several times and maintaincontacts in their region to share their experiences with the Somawathi Home and to raise money. Moreover, a steadyteam of volunteers assists the foundation with various tasks. This varies from handling and sending the web shop sales,to updating the press file.In Sri Lanka the help of volunteers has been stopped completely. At the start a lot of help was necessary to organise andimplement infrastructural matters, now the project is under the full responsibility of the local management.Sounding BoardThis committee consists of Master students of the Erasmus University, who did research on behalf of the foundation. Thecommittee meets regularly for a brainstorm session, though not frequent.Satisfaction of volunteersResearch into the satisfaction of professionals, ambassadors and volunteers never has been done. The fact that eachand everyone plays one’s part, and that each of them is and stays devoted to the organisation and regularlydemonstrates his or her motivation, is enough for the foundation.PROCEDURE OF COMPLAINTSSo far the Sri Lanka Orphanage Foundation has received no complaints and there has been no reason to draft aprocedure. Every e-mail is handled and answered the very same day.50

RISK MANAGEMENTFinancial risksFrom the start of the project the Sri Lanka Orphanage Foundation has depended primarily on sponsors for funding.Fundraising is the most important responsibility of the Board. The willingness to donate money for tsunami projects isdecreasing yearly. Even so for the foundation the income of donations is diminishing yearly. In order to be able toguarantee the continuity of the project for the next period of 14 years, the foundation needs at least 6.3 million Euro, ofwhich a total of more 3.6 million Eurohas so far been collected.The foundation has many private contributors who donate monthly. In 2007 private donations made up 32% of theincome of donations (monthly standing orders and deposits), again an increase compared to previous years. The SriLanka Orphanage Foundation tries to keep this target group of private contributors committed to the project by offeringvarious fundraising activities, such as webshop, financial adoption plan, selling books and calendars, a “ friend of theorphanage trip”. To maintain the relationship with our loyal contributors the foundation regularly communicates about thelatest news by sending this group electronic newsletters.The fundraising activities aimed at corparate sponsors have been successful as well in 2007. This target groupcontributes 28% of the income out of donations. The goal is to increase this share in the next years.The assets of the foundation are administered in deposit accounts in order to receive the highest revenue without risk. Inorder to eliminate all risk the foundation does not invest money in shares or stocks nor invests in other high risk options.Investments and project commitments are made only using freely available assets. With regards to the freely availableassets, the successful fundraising of the past three years and the permanent and structural involvement of thecontributors the Sri Lanka Orphanage Foundation expects to fulfil the continuity of the agreements.The risk of fraud is very small and sponsors can therefore be assured that their donations will be spent in the right wayon the project only. The risk of fraud is limited, because the Dutch organisation is closely linked with the partnerorganisation in Sri Lanka, the Trust. Also Board members and professionals travel to Sri Lanka on a regular basis tokeep an eye on the project. Architects of Dutch consultancy firm Twijnstra Gudde, accountant firm Deloitte and membersof the Supervisory Board travel several times a year to Sri Lanka on their own expenses to inspect all expenses andinvestments. All tenders for the building of new pavilions or medical post is specified in a Bill of Quantities and as soonas a building has been finished Twijnstra Gudde verifies the quotations and use of materials. Also the project isinspected by the CBF(Central Bureau of Fundraising) and accountant firm Deloitte in the Netherlands and Sri Lanka.Political and safety risksOn 31 July 2006 the LTTE rebels, the Tamil Tigers, declared that the 4-year-old cease-fire with the Sri Lankangovernment was over. This cease-fire did not really exist anymore since in the beginning of 2006 there was an increasein violence between the Tamil Tigers and the Sri Lankan government. The negative consequences of this violent civil warcan mainly be felt in the north eastern districts. The orphanage is located far from the main centre of violence and therehave not been any unsafe situations for the children or staff. It is likely that the violence will continue for a while.The foundation has close ties with the local authorities and the Dutch embassy in Sri Lanka. This reliable network ofinformation will enable us to take measures quickly if necessary.Operational risksIn order to limit safety risks for the children and staff of the orphanage, measures were carried out concerning fire safety,hygiene and health precautions. We have a fire protocol and of course fire extinguishers in all the buildings. Also the staffreceived training on the above mentioned subjects. All children were vaccinated.A security post was build near the entrance of the premises to secure the safety of the children. In order to guarantee thecontinuity of all facilities extra staff was recruited to have a back up, for example in case of illness of one of the teachers.For all employees a fund was established with which, for example, disability allowances can be paid. In 2008 a crisis planwill be developed and implemented.Organisational continuityThe Sri Lanka Orphanage Foundation is managed by volunteers only. The stability and continuity of the Dutchfundraising organisation depends strongly on the quality and devotion of these volunteers, together with professionalsupport from corporate organisations. At the end of 2007 it was agreed that the Supervisory Board will evaluate theBoard on matters of continuity and governing management. In 2008 the Supervisory Board will advise on improvementoptions.51

Reputation risksThe Sri Lanka Orphanage Foundation largely depends on private contributors for its funding. The reputation of thefoundation is therefore extremely important. The foundation aims to provide all the information available on the website,in newsletters, articles and in the annual report as transparent as possible. To be awarded the CBF hallmark was veryimportant because it guarantees the trustworthiness of the foundation. In any case the foundation tries to present allexternal communication and information as clear and open as possible. This policy has been awarded in 2007 with thefourth place and an honourable nomination of the Transparency Award for the best annual report for charities, aninitiative of the Dutch Sponsor Association and Price Waterhouse Coopers.Liability BoardTo cover liabilities and responsibilities the members of the Board are insured against third party claims.52

MARKETING & COMMUNICATIESTRATEGYThe Marketing and Communication strategy is based on promoting the project to our targetgroups: the public, companies and the press, with a minimum of costs. The foundationaims primarily on the existing network of the Board members and volunteers. All marketingand communication means such as print, inserts, merchandising and televisioncommercials have all been offered by befriended relations without any costs. So far allmarketing efforts of the foundation have been decided on the offers given.When an offer for a marketing action is received, the Board checks these offers against thecriteria as formulated for all marketing- and communication activities:- transparency: it is clear on what, where and how much money is invested orreceived- informative: all information about the orphanage is available and clearly displayed- involved: activities are targeted on gaining involvementThe next few years the focus of the foundation will be on retention and extending privatesponsorship as well as a targeted approach of companies, institutions and the press.PRIVATE SPONSOR RELATIONSThe success of the project has largely been attributed to the involvement of a large numberof private sponsors. Besides the regular sponsors who donate a fixed amount everymonth, many people have organised activities throughout the country to raise funds for theproject in schools, sports clubs, etcetera. The Board and/or the ambassadors haveregularly been invited to give presentations about the project at service clubs, at bigevents or seminars.The most important means of communications the foundation has to communicate with itsprivate sponsors are:Digital newsletters and emailThrough digital newsletters the foundation reports monthly about the progress in theSomawathi Holland House of Hope and about all activities and developments in theNetherlands. In 2007 the newsletter was distributed electronically 11 times amongst 5,500addresses. All newsletters are published in Dutch and English and can be downloadedfrom the website as well. Newsletters are not distributed by post from a cost perspective.Many contacts with sponsors are through email. Most matters or questions of our sponsorsconcern:- the organisation of fundraising activities for the project- questions about a visit to the Somawathi Holland House of Hope- information requests about (recurrent) donations- requests for interviews and other publicity- requests for presentations or to receive a chequeEvery email is dealt with on the same day, is being answered or any other form of action isbeing taken.Annual reportsAll annual reports are available as PDF document and can be downloaded from thewebsite. A printed copy can be obtained against payment of cost price.WebsiteIn 2007 a necessary restructuring of the website has taken place to present all availableand relevant information in a clear and organised way. Both content and structure of thewebsite have been profoundly changed and the navigation has been improved andsimplified.The website is available in Dutch and English and has the following information:- general information about the foundation- donation- and sponsor possibilities- news53

- photos and film- guestbook- webshop- press informationKids CornerIn 2007a special Kids Corner has been added to the website. This part of the website ismeant for children who can find all information about the orphanage and the lives of thechildren. This way children are invited to organise events or make a presentation. Allinformation can be found on the website and can be downloaded.Website visitsNumber of monthly visitors in 2007:2500020000150001000050000januarifebruarimaartaprilmeijuniFriends of the orphanage tripjuliaugustusseptemberoktobernovemberdecemberBezoekersUnieke bez oekersIn order to increase the involvement and commitment of our sponsors a few times a year aspecial trip to Sri Lanka and the orphanage is organised – around special importantoccasions such as the opening ceremony of a new pavilion or almsgiving ceremonies. Thisway sponsors can see with their own eyes how their Money is spent, see the progress ofthe project and they are able to see or organise activities with the children themselves.WebshopThe webshop offers several items for sale such as birthday calendars, greeting cards,pens, t-shirts and also donated art.Film and photoFilm- and photo material is updated regularly and can be viewed and downloaded from thewebsite. The footage presents a clear view on the progress of the project and thedevelopment and daily activities of the children.Instruction materials for schoolsEducational instruction materials have been developed to help schools to organise afundraising event or to give children a presentation about the project. These materials canbe downloaded from the website and gives general information about Sri Lanka, theorphanage and the lives of the children. DVDs with photos and film are also available.54

AmbassadorsThe foundation has been built on a group of committed volunteers who give presentations,organise fundraising events and generally support the foundation. The foundation doesnot have an active volunteer programme but maintains close contact with thesevolunteers.RELATIONS WITH COMPANIES AND INSTITUTIONSIn 2007 the foundation again has received a lot of support from companies andinstitutions. The annual report and the regular progress reviews are the formal means ofcommunication with these target groups. The news letters and website are obviouslyavailable as well. Personal contact between the Board members and the sponsoringcompanies and institutions fulfills the need felt by all to be kept up-to-date regularly. Thelarger sponsors support the foundation not only by operational support of goods andservices, but through the availability of their professionals who use their knowledge andexpertise on specific parts of the project as well.PRESS RELATIONSThe press is an important target group for the foundation. On one hand the foundation hasa very limited marketing and communication budget and on the other hand the press isinstrumental in increasing the reputation of the foundation and the project. Regularly pressreleases are distributed to inform the press on the latest news. In 2007 the foundation hasbeen awarded free publicity regularly. Six press releases were distributed in 2007 withregular press coverage of which six times in the national dailies.COMMUNICATION AND PUBLIC RELATIONSIn 2007 a large number of promotional activities took place. Most activities have a directlink with specific contributions to the foundation. Of some activities however the directcontribution can not be measured. The most important activities will be described below.Commercial on RTL televisionAn anonymous contributor committed to the project has donated a commercial ontelevision that has been broadcasted regularly on the several television stations in thecommercial breaks to draw attention for the project from the public.GoedTVSince 26 September 2007 the Netherlands has a new television station. GoedTV showshow charity organisations, social organisations, companies with a social responsibilityprogramme and private charity initiatives put many efforts together for a better society andthe results they achieve. It is a wonderful initiative with a specially produced documentaryabout the Sri Lanka Orphanage Foundation that is broadcated regularly. For moreinformation: www.goedtv.nl.Fundraising concertThe year 2007 has ended very successfully. On the 30th of December in thePieterschurch in Leiden we hosted 450 guests who attended the special fundraisingconcert for our children. It was a beautiful and heart-warming afternoon hosted by ourpatroness Pia Douwes. Together with 22 renowned artists, who all contributed for free, Piaorganised a fantastic event for our project. Ticket sales, an auction and a lottery raised €44,731 after deduction of costs..Activities and eventsStill fundraising events for the children of the Somawathi Holland House of Hope areorganised throughout the country. Schools organised a fundraising event or a runningcontest and ambassador Joop Kühn gave presentations and at the end of the yeartraditionally he baked many ‘oliebollen’ and raised more than € 1,000 with it.55

Insert in television magazine TROS KompasA national television magazine offered a free insert. Printer Liebeek printed 450,000adoption plan brochures free of charge that were distributed nationwide as an insert in themagazine.Holiday Exhibition 2007A team of 30 volunteers of the Sri Lanka Orphanage Foundation presented itself at theHoliday Exhibition 2007 in January. More than 170,000 visited this exhibition. The standand all facilities were offered by NRV Holiday . The result of the three days were relativelylow. But many volunteers and contributors visited the stand.Participation Margriets Better WorldOn 4 October 2007 the project Margriets Better World was launched. This is a platform forpassionate and committed women who are involved in charity to meet each other, inspireeach other but more importantly, where they can get into action. The Sri LankaOrphanage Foundation was elected to participate for one year and to keep a weblog.Awarding ceremony scholarships56

DONATIONS AND SPONSORINGTo offer a broad choice of donation- and sponsoring to (potential) sponsors the foundationhas developed various ‘products’:- financial adoption plan- notary deeds and standing orders- thumbs for thumbssponsor propositionsFinancial adoption planWe have deliberately chosen not to adopt one child financially. Because a child that mightbe found by its guardians will be replaced by another. That is why we have decided tooffer a financial adoption plan that monthly supports the running costs in terms ofsleeping, feeding and educating the community.The adoption plan options include:1. A scholarship € 25.00 per month2. A bed € 20.00 per month3. A plate € 15.00 per month4. A school chair € 7.50 per month5. A drinking cup € 5.00 per monthIn 2007 had an average number of 360 individual adoption plans and 65 individual fixedmonthly contributions.Cancellations are very limited. Changed family circumstances or deceased are the mostcommon reasons.A standing order with the necessary information can be downloaded from the web site.Printed standing orders are also available.Notary deeds and standing ordersNotary firm Ellens & Lentze at The Hague supports the Sri Lanka Orphanage Foundationby executing all notary deeds free of charge. Relevant information concerning the notarydeeds and standing orders can be found on the web site.Thumbs for ThumbsThumbs for Thumbs gives sponsors the option to support symbolically 1,000 thumbs 2 .One can select one ore more lots on a lay-out on the web site. Each lot measures 1,000thumbs 2 and one thumb costs €2.50.Sponsor propositionsThe highest interest in Love and HappinessAn extensive set of labelled donations; transparent, identified and applicable within anyorganisation. Corporate Governance for example by donating computer teachers for aperiod of time to instruct ICT to 200 children.57

FUNDRAISINGFUNDRAISING STRATEGY AND COSTSThe Sri Lanka Orphanage Foundation aims to efficiently and effectively raise funds with a minimum of costs orinvestments. It has been a deliberate choice to avoid spending funds on marketing efforts. For most of the marketingactivities a ‘partner in business’ has been recruited. So far all fundraising events and activities have been offered free ofcharge and each activity is carefully matched against the fundraising strategy of the foundation.Although the Sri Lanka Orphanage Foundation – for reasons of cost efficiency – is not associated with the brancheorganisation VFI, we support the code of conduct and implement this in our fundraising policy.In 2007 the foundation received € 400,977 in donations:The donations per category in %:58

BRIEF NOTES ON RECEIVED DONATIONSCompaniesIndividualsThe extra focus on the commitment of companies in 2007 has paid off. As much as28% of all contributions were donated by companies. Most of the donations werelabelled donations such as Thumbs for Thumbs and contributions that wereexclusively spent on the medical post or infrastructure.This category consists of many loyal sponsors that contribute monthly, or bystanding order or a notary deed. Birthdays, births, weddings and jubilees arereasons to donate funds.• At the end of 2007 a total of 8 notary deeds were donated. These deedshave a running period of 5 years and has a value of € 5,300 per year.• At the end of 2007 the monthly direct debit transactions were 351(2006:293). These are mostly contributions of private people that have committedto an adoption plan for a longer period of time• The number of people that contribute monthly without a direct debit orderwas at the end of 2007: 56 (2006: 46).9876543210Notary deeds20072006360340320300280260Adoptions2007200680706050403020100Regular donors2007200659

WebshopFundraising concertInstitutions/grantsClubs, schools, serviceclubsOther contributionsThe webshop has many attractive items that are ordered regularly.On 30 December many famous artists gave a concert for free. Next to the ticket sales,an auction and a lottery were held to raise funds. The provisional result of this event,as included in this annual financial report was € 44,731.A number of foundations have committed to supporting us for a longer period of timewith a yearly contribution. One of these foundations, committed for three years, is theTuring Foundation. Yearly we receive a contribution of € 50,000 for educationalpurposes.Clubs, schools and service clubs have fundraising events for the Sri Lanka OrphanageFoundation.Besides the contributions mentioned above, visitors of the Somawathi Holland Houseof Hope in Sri Lanka regularly leave a donation in cash. These funds are not includedin the financial report of the foundation, but are worth mentioning.In 2007 € 8,775 in cash donations were received in Sri Lanka. These contributions aredeposited into the bank account of the local partner organisation in Sri Lanka enreported in the audit made by SJMS/Deloitte Colombo.EVALUATION AND CONCLUSIONSIn order to increasing the transparency of our reports even further, for the 2007 Annual report it was decided tocategorise the contributions differently from previous years. These new categories are more aligned with our marketingandcommunication efforts and represent our main target groups.Because of this new way of reporting a comparison with previous years cannot be made. However, the new setupensures that we can measure and evaluate the effectiveness of the marketing activities better in future.Prins Bernhard School - TilburgPrins Willem Alexander School - Ermelo60

PREVIEW 2008PRIMARY – external focusTo meet the targets for 2008 the Sri Lanka Orphanage Foundation will primarily focus on fundraising activities. Thefollowing actions have been planned:Enlisting and expansion ofcontributors, adoptionplans and notary deedsLabeled sponsoring optionsfor social responsibilityprogrammesIncrease reputation by freepublicityPromote webshop sales andmerchandisingVisits to theSomawathi Home• Participation of seminars, events and congresses• Sponsored participation of the 4-day Nijmegen walking event• Presentations at service clubs Lions, Rotary, network organisations, etc.• Banner-advertising on specified websites, e.g. notary offices• Organisation of various events for existing business relations, e.g. thesponsors of Thumbs for Thumbs• Networking and relationship management• TV commercial is ongoing• Participation in Mambapoint.TV ; multimedia concept NCRV• Participation in GOED TV with an updated documentary• Google Ads, You Tube, Hyves• Participation in Margriet’s Better World• Regular press releases with the latest newExpansion and renewal of the assortment of items.Five times a year special friends-of-the-orphanage trips take place forcontributors, sponsors and volunteers to visit the project.SECONDARY – internal focusThe foundation intends to bring more focus and structure into the general management of the foundation.Internal organisationOrganisation in Sri LankaPoints of focus in 2008 will be:• Increase efficiency and effectiveness• Implement a long term planning process• Research the feasibility of acquiring the CBF quality mark versus the costsand consequences for the organisation• Evaluation with individual Board members to assess motivation, commitmentand ling term strategy• Expansion of education facilities with vocational training centre.• Implementation of crisis plan• Plan and review infrastructure plans• Optimising local management team• Implementation of administration software to improve (financial) managementinformation61

EPILOGUEAfter three years we can proudly state that a successful and sustainableproject has been implemented in the south of Sri Lanka. Needs are beingassessed and carefully step by step the facilities are expanded. As thefunds grow, children are taken in into the Somawathi family and more andmore children from the area can use the facilities as well.Initially the focus was taking care of orphaned children. As time goes by,our strategy and ideas have changed into a much wider perspective. TheSomawathi Home has developed into a regional community centre witheducation facilities for hundreds of children, and extensive medical anddental care.In the next few years our focus will be primarily on optimisation of alloperational matters with special focus on education. A special educationprogram has been developed to give extra tuition to the large group of inhomechildren that have missed out on education before they came toSomawathi. They need to be educated rapidly in order to be ready for thegovernment school and regular education.At the same time all children in regular education will be structurallysupported with their regular schoolwork in order to ensure that as manychildren as possible will be able to pass the O-level or A-level exams.English and computer classes are being offered to give the children theopportunity to develop much more skills. This will help them to have a betterchance on the market finding a job in future. In the next years our focus willbe on further education and vocational training. Mid 2008 a vocationaltraining centre will be implemented on the premises to teach the childrenthe first necessary skills to learn a profession.Thank you very much sponsors, contributors, volunteers and all otherpeople that have contributed to this beautiful and sustainable project.Without you the Somawathi Home would never have become a reality and we hope the children can count on you for along time to come!62

WITH THANKS TOPARTNERSNotariskantoorEllens & LentzeMAIN SPONSORS – Companies and foundations(Breukhoven Foundation)FoundationHelp for Sri Lanka63Tsu Trust Sri Lanka

MAIN SPONSORS - IndividualsBetty van Vliet † - South AfricaIsland of BonaireIsland of TexelMunicipality Badhoevedorp (inhabitants)OTHERAcsi Holding – ZettenAlex de Smit - PhotographerAGENSAHOY RotterdamAlberdink Thijm College – HilversumAlysis Zorggroep – ArnhemANWBApplaus MagazineArke FlyAtrium medisch centrum – Heerlen G.O.Z.L.BarendregtBasisschool de Kameleon - DuivenBasisschool Elisabeth – CharloisBasissschool LoppersumBasisschool De Waterwilg - NootdorpBasisschool Pr. Willem Alexander - ErmeloBasisschool WierwindeBasisschool De Wissel – HoornBewoners van de De Oude EnkBistro Vidocq – RoosendaalBloemisterij Pels – WoerdenBoeddhistische Unie NederlandD. BoerBoom Chicago - AmsterdamBouwsociëteit DordrechtBrandweer WestlandBrenntag NederlandBrocacefBührmannUbbens bvBungalowpark SollasiCaroline van den HeuvelC. van Schie KraanverhuurCees BeukChiel van PraagCircuitpark ZandvoortC.J. Vrolijk - DeloitteCombiwel - AmsterdamComeniusschool - ZeistCretas ReizenDaneco BVDe Brauw Blackstone Westbroek N.V.De Hindoestaanse Gemeenschap – Den HaagDe Kameleon - DuivenDe Klokkebei & Toermalijn UlvenhoutDe Kort en Van VeenDe Kreunende Sluisdeuren – Alphen ad RijnDe Kwir - NeerDe Meander - AmersfoortDe MeerlandenDe Pijp Helpt AziëDe Regenboog – ApeldoornDe Striene + De PatrijspoortDe Twee ZonnebloemenDe Wegwijzer – Krimpen a/d IJsselDirect Mail - BeekDriezorg - ZwolleDrukkerij Wilco - AmersfoortDuivenvoorde - NoordwijkerhoutECT Delta – Haven RotterdamEmbassy of Sri LankaEnig Idee?!, Hyacinthe van EmstErasmus College - RotterdamErasmus Universiteit - RotterdamEssent @Home AbonneesEsther van DamEuropese School BergenEvent Essentials, Jeannette WintersEyeclarify.comFamily Schrijner – HeterenFamily van Triest - KouderkerkFirma AananenFischer Benelux B.V. NaardenFOX VakantiesFrames Energy – ZoeterwoudeFrank Bunnik - AdelaideGaby van TolGebroeders Van Steijn – NoordwijkerhoutGedore Nederland - Alphen aan den RijnGeert Schots en Bart de LeestMunicipality ElburgMunicipality Limmen De Mienskip – BuitenpostMunicipality OpmeerMunicipality SliedrechtMunicipality TerneuzenGemini College – LekkerkerkGeodis VitesseGerrit WeselsGS1 Nederland, AmsterdamH & C HeemskerkHadraplan - Marieke van der SchaarHarry Mens VastgoedHavenbedrijf RotterdamHebo Kozijnen - HengeveldeHet Meidenhuis - HoofddorpHilde HuismanHogeschool TIOHolland Casino’sHotel Seven One Seven, Brita RöhlHuigen- MaldenHuisdierenoppasdienst - LeidenIKEAIn Concert for Asia - TerneuzenING BankICT Opleiding ROC/Aventus/Nova CollegeItds Groep - NaardenJaap van EssenJan KeijserJim van Nispen64

Joh. Mourik & Co – Groot AmmersJudith SpruijtKatholiek Onderwijs – HoogwoudKatholiek Voortgezet Onderwijs - BredaKids voor VianenKidslabelKoningin Wilhelminaschool - ApeldoornKorff de Gidts MakelaarsLeeuwarder MontessorischoolLeo van den PolLibelle - damesbladLions Club Den HelderLions Club RotterdamLions Club WoerdenLions Club IJsselsteinMaaike KraaijeveldManuela WernekeMargriet – damesbladMargriets Betere WereldMarianne MichielenMarijke en Jacques de RidderMarjolein MeerburgMark van de LaarMarkenhage – BredaMarkland College - OudenboschMartijn van CootenMartin VeldmanMartinairMeals and More Catering - BarendrechtMedia ChoiceMeeùs AssurantiënMeeuwenoord VervoerMerkenburo BoumaMetabo Nederland B.V. - BreukelenMeubelbeurs NieuwegeinNATO – Gerrie van TolNederlandse Ambassade - Sri LankaNederlandse Club Costa del SolNederlandse Rode KruisNiels Adegeest – DeloitteNobel van Dijk - NaardenNokkiebeurs – VlaardingenNRV HolidayOpenbare Basisschool ZaandijkOFIR - DelftOld Burger WeeshuisOld Fellows – ArnhemOmber Visuals - PoeldijkOmmer Business ClubOnderwijsburo TwenteOranjeschool ApeldoornPGZ - NieuwegeinPaagman – Den HaagPadvinderij ElburgPamely TijthoffPatrick LankhuizenPatrick SelbachPaula ScholtensPentascope en VidomesPeter de GrootPeter DerksPeter DouwesPodium b.v. - HardenbergPostbankPvdA Jongerenfractie AmsterdamRABO BankRabosecuritiesRexel Nederland – Cecil NieuwenhuisRonald Heister Public Relations BVRotary Club WassenaarRoyal P&O NedlloydRuro Handelsonderneming B.V. - NieuwegeinRuud Wenting$am-$am Business- en BeleggingsclubSchmidt Agenturen - MelissantScholtens – SittardSCLO FlameShare4moreSineke JansenSjaak Faassen †SJMS/Deloitte - ColomboSlavenburg Bouwbedrijven B.VSmit & de Wolf – Den HaagSpelers HoevelakenSpieringshoek - SchiedamSpinningmarathon - StrijenSri Lankan AirlinesStage HoldingFoundation A. DeenFoundation ICT Education Centre Sri LankaFoundation J.A. Fentener van VlissingenFoundation Jans Lyceum – Den BoschFoundation Bevordering Gez. OntwikkelingslandFoundation BimbamFoundation Katholiek Voortgezet Onderwijs BredaFoundation MadurodamFoundation Westland voor AziëFoundation Belangen – ElburgFoundation Grootste Family helptStroopwafelactie BenschopStudents ROC, Nova & AventusSuggesties BV, Willemijn MerkxSwimlankaTechnag – Alphen aan de RijnTelstar – HarderwijkTen CateTheater Diligentia – Den HaagThe LimehouseTitia StreutkerTom van DunTPGTSNTurbo ElsVan Dijk Bouw B.V.Van der SluisVan der Valk Hotels & RestaurantsVan Geel le Grand – René van RijVentura Business – NieuwegeinVincent van Stijn - DeloitteVivendWesterschool BellingwoudeWeybridgeWillem van Oranjeschool – ApeldoornWoerden helpt Stichting Weeshuis Sri LankaZebra Management ConsultingZeilstra-Feenstra Family65

The volunteers in NoordwijkerhoutThe volunteers in Sri LankaThe Ambassadors of Foundation WeeshuisCommissie Klankbord (Erasmus University)All donorsSupervisory BoadMr. Ing. E. JongepierMr. C.A.C.M. SchellensMr. K. van DoodewaerdMr. Drs. J.D. van DalenMr. W.L. Boone RAAssisted by:Mr. J.A. de MonchyCommittee of RecommendationMr. Drs. W.J. DeetmanMr. K. van de GraafMr. H. VergeerPatronessPia DouwesTrust MembersMrs. R. SaparamaduMr. D. SaparamaduMr. N. IlleperumaMr. M. SaparamaduMrs. L. BotejuMr. H. GamageMr. Th.H.M. BroekeAnd many, many others….Thanks! On behalf of the BoardMarja van LeeuwenSaskia Pahud de MortangesMarianne van den BoschPetra BrandFrederiek van Lookeren-HoogeboomAssisted by:Daniëlle AppelMartin AppelHyacinthe van EmstPaulien FeentraJacqueline Keetman-van den BoschElly LootsArend J. MeerburgWil van RietGreetje Willemsma66

PART III: FINANCIAL PROGNOSIS 2008-2012BUDGET 2008 - 20122008 2009 2010 2011 2012Income own fundraising € € € € €Adoption plan 50,000 50,000 50,000 50,000 50,000Donations and gifts 210,000 200,000 195,000 185,000 175,000Interest revenues 80,000 80,000 80,000 80,000 75,000Total income own fundraising 340,000 330,000 325,000 315,000 300,000Costs own fundraisingOffice expenses 5,000 5,000 5,000 6,000 6,000Travel expenses 5,000 5,000 5,000 5,000 5,000Auditors fee 4,000 4,000 4,000 4,000 4,000Bank charges and insurances 2,000 2,000 2,000 2,000 2,000Membership fees 5,000 5,000 5,000 5,000 5,000Marketing/PR 3,000 3,000 3,000 3,000 3,000Total cots own fundraising 24,000 24,000 24,000 25,000 25,000In % of income own fundraising 9.2% 9.6% 10.2% 10,6% 11.1%Third parties share - - - - -Total available for purpose 316,000 306,000 301,000 290,000 275,000Bestedingen aan de doelstellingStaff salaries 45,000 50,000 53,000 58,000 60,000Food including lunch pre-school 40,000 45,000 45,000 50,000 50,000Foster “out-home” kinderen + saving accounts 30,000 30,000 34,000 35,000 35,000Education programmes and vocational training50,000 50,000 35,000 35,000 35,000programmesGas/ water/ electricity 7,000 8,000 9,000 10,000 11,000Clothing/ lines 5,000 6,000 6,000 7,000 9,000Cleaning costs 4,000 5,000 5,000 6,000 6,000Office costs/ Telephone/internet 8,000 9,000 10,000 11,000 12,000Security 15,000 16,000 16,000 17,000 17,000Maintenance 5,000 6,000 6,000 7,000 7,000Depreciation 50,000 50,000 50,000 50,000 50,000Transportation 8,000 9,000 9,000 10,000 10,000Saving accounts “in-home” children 6,000 7,000 7,000 7,000 7,000Medical expenses 2,000 3,000 3,000 3,000 3,000Insurances/ bank charges/ auditors fee 4,000 4,000 5,000 5,000 5,000Support costs S.L.O. Foundation 8,000 8,000 8,000 8,000 8,000Total available for purpose 297,000 306,000 301,000 319,000 325,000Total expenses The Netherlands and Sri Lanka 321,000 330,000 325,000 344,000 350,000NET RESULT 19,000 0 0 -29,000 -50,00067

CASH FLOW(€ x 1,000)2008 2009 2010 2011 2012Balance sheet per 1 January 2,500 2,369 2,369 2.394 2.390Balance sheet financial year 19 0 0 -29 -50Investments new buildings and renovation 200 50 25 25 25Depreciation 50 50 50 50 50Balance sheet per 31 December 2,369 2,369 2,394 2.390 2.365Interest percentage 3.4 3.4 3.2 3,3 3,3Interest 80 80 80 80 75INVESTMENTSRenovation existing buildings €Bungalow 1 + 2 (main buildings) 30,000Bungalow 3 pre-school 20,000Bungalow 4 nursery 20,000Bungalow 5 staff quarters 30,000Bungalow 6 demolished -Sub total 100,000New buildings €19 living pavilions 650,000Staff quarters 80,000Security post 30,000Medical post 200,000Sanitary facilities 15,000Construction of a wall around the property 15,000Sportsfield 40,000Power generator / water supply 30,000Garden/ playground and outdoor play facilities 10,000Sub total 1.070,000External: New building for government school €8 new classrooms 60,000Sanitary facilities staff 6,000Sanitary facilities pupils 7,000Sub Total 73,000Total investments 1.243,000NECESSARY BUDGET FOR 15 YEARS €2005 - 2007 400,0002008 - 2012 1,670,0002013 - 2019 2,980,000Investment renovation and new buildings 1,250,000(Invested in constuction work 2005-2007 € 825,000)Total required budget 6,300,00068

NOTESIncome own fundraising:Adoption planExpected donationsInterestThe monthly donations dinner plate/ drinking cup/ bed/ school deskAssumptions.Prognosis with expected interest rate.The income prognosis own fundraising budgeted for the period 2008 – 2012 includesfairly certain amounts out of the adoption plan and interest. The number of sponsors ofthe adoption plan is stable and the interest development is positive. The amountprognosis for expected donations and gifts will need an effort to be realised.The foundation strives to find several corporate sponsors in order to secure a soundbasis for the yearly donations.Costs own fundraising:Office expensesTravel expensesMembership feesPercentage income ownfundraisingPresently the office is located at the home of the initiator of the project. It is not unrealisticthat in the future external office space is required. An amount has been reserved in thebudget for this purpose.In accordance with the Supervisory Board it has been decided that Board members cantravel once a year on account of the Foundation to Sri Lanka.The budgeted amount has been raised taking into account the possible application andfees of the CBF- Quality mark.The foundation aims to minimise the costs, if possible below 5% income of ownfundraising. Up till now this has been achieved. The budget assumes a possibleincrease. For a relatively small organisation such as the Sri Lanka OrphanageFoundation the possible costs including a membership of the CBF Quality mark are high.In future the foundation will have to adjust its cost – standard.Spent on purpose:Staff SalariesOut home children and savingaccountsEducational programsDepreciationSalaries include insurance for sick leave, end of year bonuses and pension payments forall permanent staff members and salaries of the part-time staff members. The budgetincludes an increase in staff salaries. The number of in-home children will increase with33%. Mainly extra care-staff will need to be appointed.Apart from the in-home children also 114 out-home children are supported monthly with adonation. They also participate in the afterschool educational program and the medicalcare on the premises. In name of each child, both in-home and out-home, a savingaccount has been opened. Monthly Rps. 500 is transferred into their accounts. Savingaccounts will be accessible to children from 18 years onwards.Many in-home children are not capable of attending the local government school at theappropriate level according to their age. Most of them are behind in their studies or areilliterate. The available school system offers no remedial teaching or extra facilities. In theSomawathi Home educational programs have been started to prepare the children asquickly as possible for the regular government school. During afternoons and weekendsalso extra educational programs are offered to the out-home children and 354 studentsfrom the region.In the coming years extra attention will also go to “vocational training”. For all educationalprograms a large sum has been included in the budget. The foundation strives to offereach child to develop him-herself to the limit of their capacities and to teach them skills.In 2007, 2008 and 2009 the Turing Foundation grants the necessary funds.Starting 2007 the following depreciation has been included in the annual audit by SJMSDeloitte Colombo:Buildings> 20 yearsFurniture> 05 yearsApparatus etc.> 05 yearsICT> 05 years69

Medical postInsurancesInflationIn 2007the medical post started operating, all operational costs have been included in thegeneral operational costs by the bookkeeping in Sri Lanka. Mid 2008 the administrationin Sri Lanka will be automated. On request of the Sri Lanka Orphanage Foundation themedical post will be a separate cost centre and operate with a separate budget.Buildings in Sri Lanka.In 2007 the inflation in Sri Lanka increased by 18.8%. General costs for food andenergy increased by 30 – 40%. The Foundation manages her funds in theNetherlands in Euro accounts. Monthly an amount is transferred to the Trust in SriLanka for Construction purposes and operating the home. The exchange rate of theSri Lanka Rupee has devaluated during 2007 by approx.19.6 % to the Euro.The actual costs of the Foundation are made in Sri Lanka Rupees, due to the strongposition of the euro the operational costs have hardly risen in comparison with 2006.The increase in general costs of living will remain a point of attention in order tobudget the operational costs of the home properly.History exchange rates Evolution of the Euro to the Sri Lanka Rupee in 2007Covered period (250 data points)25 May 2007 – 25 May 2008Max. 172.5904 LKR (22 April 2008)Min. 147.4076 LKR (13 June 2007)Average 159.4056 LKRFinancial prognosisThe cash flow overview shows the financial prognosis and the position of theFoundation. The Foundation is financially sound, also due to the strong basiscreated in the first year in 2005. During the upcoming years the own capital willremain intact. The public standard concerning the guideline financial reservesdeviate. On request of the child protection authority in Sri Lanka the foundation hasa financial reserve to guarantee the financial obligation to fund the operational costsof the Somawathi Home for a period of at least 10 years.70

DEEL IV: ANNUAL ACCOUNT 2007Balance sheet per 31 December 20071.1 Stock2.12.2 CashASSETS 31.12.2007 31.12.2006€ € € €Calendars in stock 7,928 9,911Other Accounts receivable andAccrued income- Interest 24,664 35,396- Fund Raising Concert 41,057 065,721 35,396- Deposit accounts 2,340,865 2.195,262- Current account 97,413 149,8092,438,278 2,345,0712,511,927 2,390,3782.3 CapitalLIABILITIES 31.12.2007 31.12.2006- Free capital€ € € €- Foundation capital - -- For projects 2,497,776 2,386,1862,497,776 2,386,1862.4 - Current liabilities- Costs to be paid 3,151 4,192- Other liabilities 11,000 -14,151 4,1922,511,927 2,390,37871

State of income and expenditure 2007INCOME 2007 realised 2007 budget 2006 realised€ € € € € €Income own fundraising3.1 -Donations and gifts 356,246 330,000 611,927-Fund Raising Concert 44,731 0 0Total income ownfundraising 400,977 330,000 611,927Direct fundraising costs-Acquisition costs 3,4863.2.1 Costs transferring payments 371 500 4803.2.2 Realisation costs 8,038 12,675 10,097Total costs ownfundraising 11,895 13,175 10,577Total result ownfundraising 389,082 316,825 601,350(as % of income from ownfundraising) 2.97% 3.99% 1.73%Available from fundraising 389,082 316,825 601,350Interest-revenues3.3 Interest revenues 89,333 66,000 65,710Total available for purpose 478,415 382,825 667,060EXPENDITURE 2007 realised 2007 budget 2006 budget€ € € € € €3.4 Spend on purposeStructural Aid- Direct Aid 360,000 232,000 392,000Total 360,000 232,000 392,0003.2.2 Realisation costs 6,825 6,825 6,8256,825 6,825 6,825Total spend on purpose 366,825 238,825 398,825Minus: Total available forpurpose 478,415 382,825 667,060Net result 111,590 144,000 268,235Appropriation of the result:Free capital- Added to capital for projects 111,590 144,000 268,235Added / subtracted fromfree capital 111,590 144,000 268,23572

Notes to the annual reportGeneral accounting principles for compilation of the annual reportWhen compiling the annual report, the Sri Lanka orphanage Foundation, adheres to the requirements in part 9, book 2 of theNetherlands Civil Code (BW2, Titel9). The Annual report also adheres to the Netherlands Code for Fundraising Foundations.This code is endorsed by the Dutch Central Bureau of Fundraising (CBF), to achieve a uniform presentation of income andexpenditures by fundraising organisations. The code is incorporated in the Dutch Guideline for Financial Accounting 650(Raad voor de Jaarverslaglegging, Richtlijn 650). The Sri Lanka Orphanage Foundation also adheres to Guideline 650 whencompiling the annual reports.All the specified amounts are in Euros. Unless otherwise stated, assets and liabilities are presented at face value. Incomeand expenses are accounted for on an accrual basis.Accounting policies for the valuation of assets and liabilitiesAccounts receivable and accrued income:Accounts receivable are stated at face value, less an allowance for possible uncollectible amounts.CapitalThe surplus or operating loss of the financial year will be added t or subtracted from the capital. The revenues on owncapital, as well as the total capital itself, will be used to support the needs of the operational costs of the orphanage and themedical and educational programs for the region.Income own fundraisingIncome own fundraising states all received gross donations and gifts during the financial year.Cost own fundraisingAll costs directly related to the fundraising activities are included. This includes part of the traveling costs to Sri Lanka andthe support and bank charges. Assigning costs to either the purpose of the foundation or fundraising is based on averagetime spent by the volunteers.Spent on purposeAll direct support and contributions spent on the purpose of the foundation during the financial year are part of the aidprogram to support the orphanage.Contributions are chargeable to the financial year in which payment takes place.73

Notes to the Balance Sheet per 31 December 20071.1 StockThe stock consists of the value of bought calendars. These calendars are being sold through the web-shop as of 2007.The total stock will be written off in a period of five years, commencing 2007.2.1 Accounts receivable and accrued incomeThe item accounts receivable and accrued income concerns an interest claim (€ 24,664) and is composed out ofstatements given by various banks, as well as a calculation of the bank fixed deposits. Also a claim for the fund raisingconcert of the 30 th of December 2007 of € 41,057 has been included.2.2 CashThis item concerns capital placed in short term deposits, as well as the funds in current accounts and cash at the bank.The Sri Lanka Orphanage Foundation does not hold any shares and is not an investor.2.3 Capital2.3.1. Freely disposable capitalThe amount of freely disposable capital for projects per 31 December 2007 totals€ 2.5 million.Ad c. The development of freely disposable capital for projects 2007 2006€ €Balance per 1 January 2,386,186 2,117,951Appropriation of net result 111,590 268,235Balance 31 December 2,497,776 2,386,1862.4 Current liabilitiesThis concerns the auditors’ fee regarding the financial year 2007 and a reservation for Value Added Tax payment for thefund raising concert of the 30 th of December 2007. A request for an exemption from taxation has been send to the taxdepartment.2.5. Contingent assets and contingent liabilitiesThe Sri Lanka Orphanage Foundation is recognised by the Dutch Tax law as a charitable institution as mentioned inarticle 24, paragraph 4 of the Succession law 1956.The Sri Lanka Orphanage Foundation has filed a formal request to receive exemption from taxation for 2007 andsubsequently the foundation still waits for the official permissions. Therefore in the annual report a tax claim has not beenaccounted for. In March 2007 the foundation has been recognised as an ANBI- institution 24269.74

Notes on the state of Income and Expenditure 20073.1. General analysis on the State of Income and Expenditure 2007Humanitarian AidThe Sri Lanka Orphanage Foundation was founded within days after the tsunami disaster and has one sole aim inhumanitarian aid being the construction and exploitation of an orphanage in the south of Sri Lanka. During the first 6months of 2007 the main emphasis was to improve the internal operational organisation in Sri Lanka and to startoperating the Medical Post. During the second half of 2007 a lot of hard work has gone into constructing new livingpavilions to be able to take in a new group of victimized children. As of December 2007 the Somawathi Home offerspermanent housing to 89 children, day-care at the Montessori pre-school and nursery school to 35 children from thevillage, monthly financial support to 106 children living with extended families and 8 university students and medical careto 1000 patients from the region. The Turing Foundation has made it possible that all children, both in-home and outhome,as well as 354 children from the region participate in afterschool educational programs .Publicity and awarenessThe foundation was established 3 years ago and is known nationwide due to the media attention and TV exposure.During 2007 national press and weekly magazines have paid attention to the project and published several articles andinterviews with the initiator of the project. RTL- television has sponsored the project during several months bybroadcasting a spot for free. In December 2007 Pia Douwes, the patroness of the foundation, organised a fundraisingconcert in the Pieterskerk in Leiden.Publicity by the Foundation is mainly via the website: www.weeshuissrilanka.nlFree product s and services by Dutch companies have materialized in a free website and free updates and maintenance.In 2007 all printing materials and stationary including brochures for PR purposes have been offered free of charge.FundraisingThe Foundation has obtained the revenues in 2007 from various sources: private individuals, corporate accounts,schools, associations, clubs, service-clubs and others.To spread the income also government grants and third-party appeals were contacted. This has resulted in a grant ofThe Turing Foundation for the years 2007, 2008 and 2009. Although last year the vast amount of over€ 400,000 has been raised, it remains the question how willing and generous the private individuals and the businesssector will stay in future. The focus of attention will be to find strategic business partners, foundations and institutionswilling to commit to the project for several years.IncomeAll donations and gifts will be used to support the only aid project of the Foundation: the Somawathi Home HollandHouse of Hope and all her activities at Harumalgoda, Habaraduwa, Sri Lanka.Results own fundraisingThe results from own fundraising in 2007 can be categorised as follows:€Donations < € 5,000 110,260Donations > € 5,000 190,057Donations adoption plan via standing orders and web shop sales 55,929Total Income 356,246Fund raising concert44,731TOTAL INCOME OWN FUNDRAISING 400,977Interest revenues89,333TOTAL INCOME 490,31075

3.2. Cost own fundraisingThe total cost of fundraising consists of:3.2.1. The external costs of international bank transfer charges.3.2.2. The own organisation expenses: these costs are being spent on project coordination, information and awarenessand fundraising;Acquisition cost 3,486Auditor fee 3,142Bank charges 371Contributions, Chamber of Commerce etc 54Travel expenses Sri Lanka 2,434Insurances 428Printing matters 719Stamps/ postage 692Fairs 3,643ICT 248€Total costs own fundraising 11,895Cost percentageThe “costs of own fundraising” constituted in 2007 2.97% of in “income from own fundraising” of the Sri LankaOrphanage Foundation and is well under the level that the Dutch Central Bureau for Fundraising (CBF) has set. Thisextremely low percentage has been realised thanks to the great support of many volunteers and Dutch companies whoprovide services and products free of charge to the Sri Lanka Orphanage Foundation.3.3. Cash management and interest revenuesThe Sri Lanka Orphanage Foundation makes sure that all assets are deposited in accounts that immediate withdrawal tofund the project is possible. Funds not needed on a short term basis are deposited in interest saving accounts. The totalfunds on interest saving accounts can fluctuate yearly.Continuity reserveThe Sri Lanka Orphanage Foundation is committed to financing and operating the Somawathi Home and all its medicaland educational programs. The Foundation has on request of the Sri Lanka Child Protection Authority a continuityreserve to guarantee the exploitation of the Somawathi Home for a period of 10 years.Result 2007 Result 2006€ €Interest Income 89,333 65,71089,333 65,71076

3.4. Spent on purposeIn 2007 the total amount of € 360,000 has been transferred to the Somawathi Saparamadu Trust. The money has beenspent on new constructions (construction of 2 new living pavilions as well as the under construction costs of 3 newpavilions, the construction costs of the nursery school and the final costs of the medical post) , and the operational costsof the Somawathi Home and the monthly financial support of the out-home children program living with extendedfamilies.SJMS Associates, Chartered Accountants, Colombo, Sri Lanka has audited the 2007 annual accounts of the Trust andsent the annual report to the Trust on the 9 th of April 2008.The overhead costs of the Foundation in the Netherlands are minimal because all personnel involved have worked so faras a volunteer. The office of the foundation is located at the home address of the initiator of the project and during 2007no charges were levied.Most of the expenses are made in Sri Lanka, because that’s were in the end costs are made concerning housing,feeding and raising the children including the tuition fees, as well as the staff salaries and the overall operational costs ofthe Home.During the years 2007 and 2008 extra amounts of money are invested in Sri Lanka due to the planned construction workof 10 living pavilions, a medical post, pre-school and nursery, staff quarters, preparations of a sports field and othernecessary infrastructural improvements such as power supply, water management and water tanks. It is the aim tofinalize construction work by the end of 2008.Signed by the Board,The Hague, 22 May 2008Marja van LeeuwenSaskia Pahud de MortangesChairmanTreasurer77

Other InformationStatutory appropriation of net resultNo resolutions have been included concerning the destination of the net result.Appropriation of net resultNet result will be, anticipating the approval of the Board, added to the Own Equity.Added to the freely disposable capital for projects€111,59078