ANNUAL REPORT. Stichting Vrienden kijken samen verder. Friends for Life Foundation

Transcription

1 2012 Stichting Vrienden kijken samen verder Friends for Life Foundation

2 Details organizations: The Netherlands Name: Vrienden kijken samen verder Location: The Hague Legal entity: Stichting Kenya Name: Friends for Life Foundation Location: Ukunda, Kenya Legal entity: NGO 2 Stichting Vrienden kijken samen verder - Friends For Life Foundation

3 1. ORGANIZATION BACKGROUND AIMS AND OBJECTIVES STRATEGY AND POLICY MAIN ACTIVITIES ORGANISATIONAL STRUCTURE 9 2. COMMUNICATION POLICY GENERAL FOCUS AREAS AND ACHIEVEMENTS ACHIEVEMENTS IN THE NETHERLANDS ACHIEVEMENTS IN KENYA FOCUS AREAS IN ACTIVITIES BUDGETING FINANCIAL STATEMENT FINANCIAL OVERVIEW JUSTIFICATION EXPENSES RATIO EXPENSES AND REVENUES RESERVES AND FUNDS VOLUNTEER POLICY SALARY AND FEES BOARD STATEMENT MONITORING ACTIVITIES MONITORING ACTIVITIES MEETINGS AND INTERNAL REPORTING 22 3 Stichting Vrienden kijken samen verder - Friends For Life Foundation

4 1. Organization Background The Friends for Life foundation was founded in 2002 as a result of a long term project in which several primary and secondary schools in the Kwale district in Kenya were build. The founder, Lammert Braaksma, concluded that a lot of organisations and foundations were busy building primary and secondary schools in that time, without knowing the long term effects of the education that children receive. After some research he concluded that many children were still not able to determine their own future and achieve the goals they had in mind. This was especially true for girls. After finishing secondary school, girls in urban areas were still not able to find a job because of a lack of specialised education at a higher level. Girls in rural areas were often forced to marry at a young age or required to work on the land owned by their parents To give these girls a chance to really shape their own lives, Mr. Braaksma decided that the focus of the foundation should shift to scholarships for students to provide a sustainable programme. Mr. Braaksma designed a student- for- a- student construction in which students sponsor another student after graduation. The increased awareness of responsibility of students regarding the next generation and developing their country was and still is one of the most important benefits of this approach. Fundraising activities were initiated and professionalised in order to find sponsors willing to contribute to the goals of the foundation. 4 Stichting Vrienden kijken samen verder - Friends For Life Foundation

5 1.1 Aims and objectives The aim of the Friends for Life foundation is to contribute to sustainable development within the Kwale County by sponsoring scholarships for as many students as possible in the county that have a lack of financial means, assuming the following criteria: Commitment of each student to sponsor another student after graduation Commitment of the student to find employment in Kenya and perform activities in favor of the Kwale County. Objectives of the foundation: Provide an opportunity for youth from poor backgrounds to study, graduate and find a job within the Kwale County or, when necessary, beyond. Establish student awareness of the responsibility they have regarding their generation as well as the next generation and the improvement of the economic situation within their county (Kwale) in particular. Develop a broader awareness of students regarding social- environmental subjects. Build up a strong and solid network of students, graduates, educational institutes, future employers and other stakeholders. 5 Stichting Vrienden kijken samen verder - Friends For Life Foundation

6 1.2 Strategy and policy Friends for Life Foundation restructured its strategy and policy in 2012 thoroughly, especially in the Kenyan foundation and defined a new way of working for the future. The following strategy and policy principles can be outlined accordingly: Standardization and transparency The foundation is growing every year. Consequently, procedures and administration also need to develop. Standard procedures have been defined and implemented in the organization. A standard process has been defined for all steps from application until graduation: o Application o Intake o Matching students and sponsors o Student agreement signing o Payment of tuition fee & allowance o Graduation Creating commitment and controlling methods During the process and after graduation several activities are carried out to ensure the student stays in the program and the donors and sponsors can be updated regularly: o Periodic interaction during study Regular correspondence with the students is mandatory. This is to ensure that Friends for Life is aware of students progress and can help them with the next steps during study, graduation, career counseling and securing a job. The correspondence is as follows and is monitored: o Student update All students update Friends for Life at the end of each semester. They hand in their results and inform Friends for Life of any changed circumstances in their study, their environment, family or physical health. 6 Stichting Vrienden kijken samen verder - Friends For Life Foundation

7 o Correspondence with sponsors Twice a year each student provides a sponsor report containing the status of their study and their personal circumstances. Friends for Life forwards the reports to the sponsors and keeps a copy on file. o Regular updates for students Friends for Life sends information to the students regarding events organised for students and graduates, changing policies or any other matters that are of interest to the students. If applicable, Friends For Life sends the students information regarding their sponsors. Continuation and sustainability In order to ensure a continuous and sustainable system in the future for Friends for Life Foundation, there are several strategic activities in place: o Job coaching Friends for Life supports the students with job coaching in order to stimulate and speed up the process of starting a career. The job coaching is free of charge and is offered to all of the students that have graduated. In the future, possibilities of (paid) participation by other students might be offered. o Repayment To make students aware of their responsibilities to the future generation and to be able to increase the number of students studying, repayment of the scholarship is mandatory for all of our students. o FFL Network o During study and after graduation, students are encouraged to become member of our network. The network aims at bringing the above mentioned parties together in order to benefit from each others knowledge, experience and connections. Current students should all become ambassadors of Friends for Life in the future. 7 Stichting Vrienden kijken samen verder - Friends For Life Foundation

8 1.3 Main activities The stichting Vrienden kijken samen verder specific objective if to fundraise financial means in order to support the Friends for Life Foundation in Kenya. In order to meet this objective, the following activities have been carried out in 2012: Approaching potential sponsors and donors Writing proposals and applications in order to receive funds Maintaining and following up on current sponsors and donors Developing and contributing to PR and Marketing activities Initiating and implementing projects for fundraising purposes Communicating and aligning structure with Kenyan foundation Administrating activities The Friends for Life Foundation received the funds through the Stichting Vrienden kijken samen verder in order to meet the specific objective within the foundation: Issuing scholarship and guide students throughout their studies. The following activities have been carried out in the past year: Reporting on student progress and writing student updates for sponsors Contribute to proposal writing and applications issued in the Netherlands Analysing and restructuring as- is processes and implementing new (to- be) processes Developing and contributing to PR and Marketing activities Handling day- to- day student requests Visiting students and universities in order to monitor progress, write student reports and maintain contacts within universities Issuing tuition fees to educational institutes and allowances to students Guiding students throughout their studies Expanding network among local organisations, educational institutes, cooperating parties and other stakeholders Administrating activities 8 Stichting Vrienden kijken samen verder - Friends For Life Foundation

9 1.4 Organizational structure The Friends For Life foundation, a separate Kenyan entity with a separate financial administration, currently receives its funds through fundraising- activities in The Netherlands. A Dutch Foundation (Stichting) was incorporated, located in The Hague, de Stichting vrienden Kijken Samen Verder, known as de Stichting Friends For Life. This Stichting/ Foundation coordinates all fundraising- activities and is the founding partner of the Kenyan foundation. The Kenyan foundation has the following board members: Lammert R.E. Braaksma - Chairman Kees (C.) Punt - Treasurer Lucy Waweru - Secretary The 'stichting' in the Netherlands has the following board members: Lammert R.E. Braaksma - Chairman Kees (C.) Punt - Treasurer Paul H.B. Gorsira - Secretary The board in the Netherlands acts as monitoring body for the Stichting Vrienden kijken samen verder and the Friends for Life Foundation. Since 2011 one employee in the Netherlands is executing account management and fundraising activities for the Dutch foundation. In Kenya one local employee is responsible for coordinating activities. This person carries out all student visits, communicates with the students, carries out administrative tasks and informs the board in the Netherlands regarding progress and financial matters. On a regular basis students in the program carry out administrative tasks for the foundation during their holidays or as part of an attachment. 9 Stichting Vrienden kijken samen verder - Friends For Life Foundation

10 2. Communication policy The various stakeholders related to Friends for Life need regular communication and information in order to secure a positive image, brand awareness and smooth partnerships and cooperation if applicable. Additionally, internal communication is indispensable for a smooth running organization and should be in line with overall objectives and policies. The following policy principles are defined regarding communication: Internal communication is open, direct, but confidential when necessary Internal communication in the Netherlands takes place on a regular basis (between board and fundraiser/ volunteers) and ad hoc when necessary Communication between the Netherlands and Kenya takes place regularly on different levels (board of both organisation as well as employees/ volunteers on operational level) All information communicated to stakeholders should be correct, complete and transparent All information and communication towards stakeholders should be in the same format, using the same tools and materials Crucial stakeholders such as sponsors and donors receive regular communication from Friends for Life (push) as well as additional communication on demand (pull) All information and communication related to PR and marketing activities (such as interviews, columns etc.) should be correct (using actual correct figures) and agreed with the board in the Netherlands or in Kenya All information and documentation published should be communicated to all boardmembers/employees/volunteers internally Exposure by donors and sponsors of Friends for Life s logo/ brand is possible but should be agreed between parties before implementation 10 Stichting Vrienden kijken samen verder - Friends For Life Foundation

11 3. General focus areas and achievements 2012 The activities of 2012 were mainly aimed at professionalising the organisation, in the Netherlands as well as in Kenya. In the Netherlands a professional fundraiser started in 2011 after the founder realised that a professional foundation should not rely on financial means by its founder only. The fundraising activities brought the foundation new opportunities and sustainability. External parties were now more and more involved and committed to the objectives of the founder. In Kenya this brought new opportunities too as more students could be accepted in the program and workshops and coaching of students could be organised. Of course, as a consequence of the increased number of students a structured way of working in Kenya was required. This meant clear procedures, criteria and administration. This was the main focus of professionalization in Kenya. Although activities in the Netherlands and in Kenya are closely related and depending highly on each others success, a separate NGO was founded in Kenya at the end of The Friends for Life NGO has been working closely together with the Friends for Life Limited in Kenya in the past. In 2012 activities and means have been unbundled to create a more clear and transparent process. In the future however, there will still be cooperation between the NGO and Limited as both can benefit from sharing each others resources and means without interfering or disturbing one another. 11 Stichting Vrienden kijken samen verder - Friends For Life Foundation

12 3.1 Achievements in The Netherlands The efforts of a professional fundraiser who started in 2011 have borne fruits in More students were accepted based on different sources of financial means coming in: Commercial sponsors that sponsored one or more students; Foundations that sponsored one or more students; Individuals that sponsored one student, mainly based on annuity donations; Accidental means raised through projects, such as a water- jug programme at restaurants; Other donations such as those of the founder. For the purpose of fundraising several different digital and physical materials have been distributed to inform a wide audience about Friends for Life; this encouraged them to contribute. Additionally, the financial management was taken care of by a professional accountant, the annual statement composed under the auspices of an accountant, under the scrutiny of a treasurer. A final important development was the start of (recruiting of) a new board, whilst specifying aims and objectives to make these measurable. 3.2 Achievements in Kenya In March 2012 two volunteers from the Netherlands with a backgrounds in Business Administration were placed at Friends for Life in Kenya to start a placement for one year. This was based on a partnership between Friends for Life and VSO (Voluntary Services Overseas). One of the volunteers mainly focused on the student Foundation. The volunteer has been contributing to the foundation by sharing skills and knowledge based on educational background and experience gathered in the 12 Stichting Vrienden kijken samen verder - Friends For Life Foundation

13 Netherlands. After a quick scan of the foundation, it was decided that the processes were the first and most important part to focus on; starting with the core process issuing students scholarship. The following results can be mentioned: Internal Procedure Guide and policy manual The Friends for Life student foundation now has new policies and procedures to ensure effective implementation of new processes and sustainability. One of the aims of Friends For Life is to give an opportunity to graduate in college or university to girls and boys who cannot afford this. The means that are being used to achieve this, have on the one hand a financial character (scholarships), on the other hand also knowledge sharing and network opportunities are being offered (coaching and training during the study and after graduation). To be able to support the youth in the most effective way, there should be a clear and transparent process that is understood by everyone within the Friends For Life Organisation. The internal procedure guide, which was developed in March 2012, provides an overview of the standardized process that should be followed by everyone that participates in the foundation. Increased student visibility and commitment Friends for Life has drastically increased its network to the students and updated their locations, contact information, current job descriptions, and (re)payment information. A categorization and digitization of the system took place to make the procedures and follow up a much easier process. This has allowed the organisation to track the progress of (graduated) students on a more actual level and identify the percentages of job placement after graduation. The increased visibility of students also made it possible to send more detailed information and reports to the sponsors on a regular basis. Involvement of educational institutes 13 Stichting Vrienden kijken samen verder - Friends For Life Foundation

14 The foundation increased its networks and visibility amongst students by organising various meetings at colleges and universities. Current studying students participated in the discussions to provide feedback and encourage others. This has made the foundation a known and reputable organization amongst many educational institutions. 4. Focus areas in 2013 Main focus in 2013 will be a further professionalization of the (financial) processes in the Netherlands as well as in Kenya, expansion of the number of funds in the Netherlands and a local network of partners, donors and future employers in Kenya. 4.1 Activities 2012 In 2013 activities will focus on a follow up and implementation of the initiatives started in In the Netherlands as well as in Kenya further development of a structured way of working, transparency and a strong communication to all parties involved (sponsors as well as students) is the most important goal in order to ensure long term commitment. Additionally, visibility, transparency and marketing actions are essential in order to keep the current sponsors satisfied and making new ones interested. The following focus areas can be mentioned: Renewal of board Both in Kenya and in the Netherlands renewal of the board takes place. These changes will be finalised in Legal procedures in both countries are a first priority. Additionally, responsibilities, mandate and knowledge will be handed over to the new board members. Continued unbundling of Foundation and Limited Company On operational level the NGO in Kenya and the Friends for Life Limited can work together to benefit from shared facilities (sharing office-, human resources- and administrative costs). On (financial) process level some activities still require unbundling, which will be finalized in Stichting Vrienden kijken samen verder - Friends For Life Foundation

15 Defining and directing towards SMART goals The following SMART goals will be determined and should be achieved in the coming years: o Obtain CBF certificate In order to obtain the CBF quality standard 1 it is among other criteria required to have a maximum amount of expenditures in relation to the incoming donations from sponsors. o Increase number of students paid by external means The number of external sponsors has to be increased in order to let more students studying with a scholarship of Friends for Life. o Minimalize number of students dropping out of the program Only with an intense, guided process from application to graduation and job application, dropping out of the program unsuccessfully can be prevented. o Increase repayments after graduation The repayment of students that graduated is an important part of the continuity of the foundation in the future (graduated students pay for the next student to study). Besides this, it will stimulate responsibility and commitment of Kenyan youth towards society of the future. o Connection with labour market In order to have a certain amount of students obtaining a job in a measurable time after graduation, job coaching programs will be offered. The aim is to find cooperation with other organizations in Kenya that already have experience in this field. Describing and implementing improved financial processes In addition to the improvement of the core processes, the financial processes will be described and implemented in a new, more transparent and efficient way. This concerns the financial processes from incoming financial management (mainly in the Netherlands) to outgoing financial management (mainly in Kenya). Marketing, PR and communication 1 The CBF certificate is a Dutch quality standard developed for charities by a so called Central Bureau of Fundraising (Centraal Bureau Fondsenwerving) 15 Stichting Vrienden kijken samen verder - Friends For Life Foundation

16 The following actions will take place in relation to marketing, PR and communication: o Clear guidelines and proactive communication towards sponsors In order to ensure understanding and a smooth process after agreements with sponsors, a standard approach during fundraising activities is required. This could mean development of standard sponsor packages in which a sponsor can choose from several options but within a certain framework. Based on the guidelines and standard criteria sponsors should receive information about the donation and their students sponsored on pro-active basis. On predetermined moments during the year sponsors receive an overview and/ or report instead of reports based on demand. Of course, sponsors should always be able to ask for additional information during the rest of the years. o Use of new communication techniques In 2012 a new website has been developed which gives new opportunities for communication worldwide. Sponsors can see what the actual news is in Kenya and information about students can be accessed online. In addition to this, the social media, nowadays essential for every organisation, should be in place where possible and is a focus point of o Expanding (local) networking activities In order to increase awareness and responsibility within the Kenyan society towards the future generation the foundation will aim at expanding its network not only internationally but especially also in Kenya. Local organisations and institutions will be visited, contacted and invited to participate and contribute to the goals of the foundation. This can be done either by donating, organising fundraising events or securing jobs for the graduated students. 16 Stichting Vrienden kijken samen verder - Friends For Life Foundation

17 4.2 Budgeting Budget 2013 Revenues BUDGETED Charitable gift annuities Water jug project small donations/ funds Annual events Revenu Expenses Companies Small activities/ projects Private donations School activities pm Total Expenditures Personnel - overhead, employees 0 - compensation expenses by 0 donations board 0 Other costs Office Miscellaneous Expenses NGO Kenya PR/ Marketing and communication Total Total to spend on students minus PM 17 Stichting Vrienden kijken samen verder - Friends For Life Foundation

18 5. Financial statement 5.1 Financial overview Balance sheet as at 31 december 2012 Assets 31 december december 2011 Current assets Receivables Cash at Bank Total assets Liabilities Equity Buffer equity Reserve Total liabilities Stichting Vrienden kijken samen verder - Friends For Life Foundation

19 Profit and loss account at Income fundraising Direct costs fundraising Net income Administration and management costs Total operating costs Interest paid Total financial income and expenses Mutation reserve Objective expenses Kenia Extraordinary income Profit for the year Stichting Vrienden kijken samen verder - Friends For Life Foundation

20 5.2 Justification expenses In 2012 an amount of ,- was spent on the objectives of the foundation: scholarships for needy students in Kenya. All the objective expenses are transferred to the Kenyan Foundation. The annual report of the foundation is available upon request. The board of the foundation tries to keep the costs of fundraising as low as possible. This is done by using the facilities donated to the organization by members of the (personal) network of the board members such as the usage of office space and accounting services. 5.3 Ratio expenses and revenues Objective expenses as a percentage of total income: 112 Direct costs fundraising as a percentage of income fundraising: Reserves and funds During the years 2005 until the end of 2009 the foundation was basically solely funded by the capital of the founder, Mr. Braaksma. It was their intention to achieve a Perpetuum Mobile model, on a funding that was based on 4 principal- expectations: 1. The capital brought in by the founder was the foundation to start on 2. If the students were to receive a scholarship, they were obliged to return their scholarship on behalf of fellow- students, to the FFL- foundation. 3. The objective of the Friends for Life Limited (dealing with Micro- finances), was intentionally to be distributing a 20%- 25% of its net- Capital- gain per year, out of the Founders shares 4. The foundation was to be sponsored in order to facilitate the increasing amount of students, by European (or Global) institutions, especially when the student- sponsorship's were not catching up accordingly 20 Stichting Vrienden kijken samen verder - Friends For Life Foundation

21 The donations by the founder decreased in 2011 and 2012 and the focus for building up funds and reserves was more and more on the Perpetuum Mobile principle of repayments of loans. In 2012 all students were obliged to sign a student agreement in which the students sign to repay their loans after graduation. The number of students repaying has gone up during the year as a consequence of this. Additionally, the efforts of the fundraiser bore fruits as a large number of students were covered now by external sponsors instead of by the financial means of the founder. In 2013 onwards, building reserves and funds will remain important and will be done through stimulation and tracking and tracing graduated students in order to repay their loans. Additionally, partnerships will be searched for with external parties willing to contribute to the foundation financially, covering the costs of the students and overhead costs of the foundation. 5.5 Volunteer policy Volunteers working for the Dutch Foundation will be requested to support the organization without any payment. In some cases a small allowance is paid to a volunteer in order to cover costs of traveling etc. Two volunteers in Kenya started in 2012 through a placement of Voluntary Services Overseas (VSO). VSO is the world s leading independent international development organization that works through volunteers to fight poverty in developing countries. VSO's high- impact approach involves bringing people together to share skills, build capabilities, promote international understanding and action, and change lives to make the world a fairer place for all. Both the volunteers were in Kenya from March 2012 until the end of The allowances of the volunteers were for a large part covered by VSO. A small amount and the costs of housing were covered by Friends for Life Foundation. The Friends for Life Foundation will continue with one of the volunteers in 2013 under the same conditions of volunteering. However, VSO 21 Stichting Vrienden kijken samen verder - Friends For Life Foundation

22 announced a change in policy, which will change the division of costs of the volunteer. The total allowance will have to be paid by Friends for Life from March 2013 onwards. Costs of visa, work permit, medical insurance and return- flight tickets will still be on the expense of VSO. 5.6 Salary and fees board Members of the board do not receive any renumeration for their tasks. The Dutch foundation does not employ any paid staff. The fundraiser who carried out tasks in 2012 for the Dutch Foundation was paid by personal means of one of the board members. 6. Statement monitoring activities 6.1 Monitoring activities 2012 The board in the Netherlands montitored the activities in the Netherlands in 2011 mainly by formal and informal meetings with all board members and the fundraiser working for the Dutch foundation in Additionally, the Dutch volunteer working for the Kenyan Foundation reported regularly regarding the processes and (financial) status within the Kenyan organisation. Meetings through phone, skype and communication by took place on a regular basis with the volunteer in Kenya. 6.2 Meetings and internal reporting The VSO volunteer working in Kenya in 2012 started with writing a business plan for the organization. In the business plan, advice was being given to the board of the Dutch Foundation concerning different areas within the Kenyan organization (transparency, processes, PR & Marketing etc.). In April 2012, the chairman of the Dutch Foundation paid a visit to Kenya and the business plan was discussed thoroughly. 22 Stichting Vrienden kijken samen verder - Friends For Life Foundation

23 After the final business plan was agreed, the volunteer reported regularly on the progress of the implementation of improvements. In November 2012 the full board and the proposed new chairman of the Dutch Foundation visited Kenya. A board meeting was organised and all items within the business plan were discussed. Progress and achievements were confirmed and explained and new goals and objectives defined. 23 Stichting Vrienden kijken samen verder - Friends For Life Foundation