2016 Financial details
We put every dollar to its best use.
In 2016, giving to Asia's Hope was up significantly from the previous fiscal year. We ended 2015 with an income shortfall that depleted nearly all of our unrestricted cash reserves and forced us to temporarily access funds initially restricted for other use. 2016, however, was a very good year for Asia's Hope, and we ended the year US$273,448 in the black, allowing us to replenish key funding categories and return the organization to the net positive position we've enjoyed in past years.
Overhead, in the non-profit world, includes fundraising, administration, management and general expenses. The average U.S.-based non-profit spends more than 30% on overhead. An "A" rated charity spends at least 80% on its programs and no more than 20% on overhead. Despite an increase in spending in nearly every category, Asia's Hope maintained in 2016 an exceptionally low overhead rate of 11%.
How much does it cost us to raise $100?
According to CharityWatch, a non-profit organization's fundraising is considered "highly efficient" if it spends less than $25 for each $100 donated. The average non-profit in America spends $37 to raise $100. At Asia's Hope, we spend only $.20 on fundraising per $100 raised. That's not two dollars, that's twenty cents.
This extraordinary cost-to-donation ratio is made possible by our whole-home sponsorship model that provides the majority of our operating funds from long-term funding partnerships rather than one-off donations, and by our shared cost strategy that sets aside 18% from every donation received to fund contingencies, administrative costs and projects that do not currently enjoy the support of long-term sponsorship. So whereas other organizations require an ever-growing, full-time fundraising or "development" staff, we have to date been able to spend the lion's share of our funds on personnel and projects that directly benefit the children in our care.
As Asia's Hope grows, we know that we won't be able to sustain such preposterously low cost-to-donation ratios. In fact, we're eager to increase our capacity to raise money from a larger body of individual donors. But we remain committed to stretching every dollar to its limits and maintaining a lean administrative and development budget that maximizes the value of every contribution.