Goals and realisation

Net4kids Aid Foundation
In 2006, we were able to provide more aid to children. With 15 projects in 7 countries, Net4kids was able to support 7,199 children in 2006. This is an increase of 42% compared to 2005. The central goal was achieved, living up to the ambitions defined at the beginning of the year. The project results also reflect our position on the nature of the child aid (structural, sustainable, scalable and locally anchored). 80% of the project budget was invested in continuation or expansion of projects by existing partners. We strive for balanced growth of a varied portfolio. Of the 15 supported projects, 4 are new, with additions primarily in the field of vocational training in Africa.

On the intersection between Net4kids Organisation and Net4kids Aid Foundation, successes were achieved in the area of cooperative ventures. In April 2006, Net4kids, International Child Support (ICS), Wilde Ganzen (WG), the Zeister Zendings Genootschap (ZZG) and KidsRights (KR) filed a joint subsidy request with the Dutch Government under the name Change for Children within the framework of the co-financing agreement (Medefinancieringsstelsel, MFS). The request was honoured with an amount of € 23 million. Within this framework, Net4kids is a very small player. We expect to gain most from the intensive knowledge exchange between parties rather than achieving financial gains. We already achieve these advantages in our cooperation with Wilde Ganzen. In late 2006, the ties were further strengthened by a statement of intent, in which this renowned party will take on the entirety of project contracting and monitoring on behalf of Net4kids, and in turn Net4kids will provide Wilde Ganzen with ICT and fundraising support.

Net4kids Organisation
The goal of realizing a controlled increase in project donations to € 500,000 (growth of 65%) was achieved. A total of € 510,275 in donor funds was raised and used for child aid in 2006, while the donations promised during this booking year for aid in years to come add up to over € 488,000. The number of donors has increased by 75. In 2006, 170 individuals or groups supported Net4kids. 40% of them were business donors. In monetary terms, businesses represent 91% of donations. In order to achieve an increase in the relative contribution by the business community, Net4kids Services was launched in June 2006: an offer in which Net4kids professionals, in a personal capacity, offer their (additional) support in the implementation of a company’s charitable activities. An important addition to our proposition, which allows Net4kids to better serve the business community without shifting the focus from increasing child aid.

Focus is crucial for a small organisation undergoing such explosive growth in terms of both donors and projects. The organisation can no longer facilitate growth with equal growth of the number of volunteers. The aim to expand the organisation through strategic partners was only partially achieved. The aid of a translation agency and a printing partner improved the quality of communications, but the most important strategic partner, one in the ICT field, was not found. Reinforcement of the ICT infrastructure (specifically with the relaunch of a new website) was only partially successful despite the best efforts of a dedicated team of volunteers, achieving an online payment system and a pilot project for improved project reports.

While the limits of a volunteer organisation first became apparent in the executive team, in 2006 we also had to make a number of changes to basic operations which were only partially foreseeable. Shifts in (temporary) availability within the management team required restructuring of the organisation, which will lead to a better balanced organisation in the long term. The appointment of a (partially salaried) general manager responsible for the daily operation of the organisation is the most important milestone. It also strengthens our business model by implementing the legal and financial separation between the various foundations now also operationally.

The aim to keep operational costs (the total of costs for fundraising and execution) below 25% was achieved. In fact, with an increase of only 2.8% compared to last year, the operational costs amount to 24.3% of donations, compared to 40.2% for 2005. The goal to find separate sponsors for at least 75% of these costs did not materialise. In total, 13.7% of the organisational costs are covered by organisation donors. The rest of the capital was drawn from the Continuity Fund.

Net4kids Continuity Fund
The primary goal of the Continuity Fund is to ensure the continued existence of the organisation, and to step in where project or organisational needs arise. To sustain this in the long term, the goal is to limit dependence on capital, and to use fund returns to cover project and organisational costs. For the second year running, the decision was made to delay the planned capital expansion of the Continuity Fund and to focus on regular fundraising. With the lack of additional capital and organisation sponsors, the fund has shrunk by € 95,953.