More on 2014 expenditures in INJ orphanage

As usual, here is the yearly analysis of INJ’s expenditure. We are a bit late as compared to previous years, so these are 2014 accounts, and you will get 2015 accounts in Autumn 2016, hopefully. In 2014 Prema has made huge investment to ameliorate the daily life at the orphanage: she bought a new water-tank and a new solar heater and had them fixed on the rooftop. These costly investments represent nearly as much as the routine budget of the orphanage and have doubled the amount of money spent in the year. However, the exchange rate between the Indian rupees and the euro is still increasing and has smoothed the increase of the expenditure’s cost.

We consider 3 lines of expenses in the budget

-       The routine monthly budget to make the orphanage work every day (salary, food, electricity.. are included here);

-       Investment linked to the schooling of the girls (school fees and cultural activities fall in this category for example);

-       Extraordinary investments (repairing the water-tank...).

The following graph shows the share of all expenses in 2014 :

As said earlier, the investments made by Prema have doubled the budget and their share is roughly the same as the annual routine budget. In the years before, the share of the monthly budget was between 70 and 75% of the total expenditures.

Focus on the monthly budget

Food is the first and major source of expenses of the routine budget: it represents 72% of the budget. The salaries of the 3 workers used to be the second major line of expenses but in 2014, it came only at the 3^rd place due to the rising cost of cooking gas, which represents 8.7% of the expenses.

The salary of the 3 workers hasn’t changed since 2011 (Prema and Shiny work pro bono). Eventhough the share in the budget is changing, the aboslute value is exactly the same. The analysis of the expenses over a few years show dramatic changes of some expenses : food expenses increased dramatically between 2011 and 2012, and the increased is less important in 2012-2013 (12%) and then even lower between 2013 and 2014 (2.5%). Medical expenses have undergone a sharp decrease betwwen 2011 and 2013 (they were very high before due to the hospitalization of a few children) and have increased between 2013 and 2014 by 10% due to scabies. Electricity and cooking gas expenses trends are the major ones during the period: we can observe a sharp increase between 2012 and 2013 (around 15% for electricity and 18% for cooking gas), and then the increase slowed down between 2013 and 2014. However, for cooking gas only, the cumulative increase is over 70%. These increases are linked to the cost rise on the market. Overall, the major increase occured between 2011 and 2012 (+25%), since then, the yearly increases have been between 5 and 10%.

The orphanage resources

Thanks to its donors’ network, Siwol is the main contributor to the recurrent cost of the orphanage. However, the 2014 investment have been made possible through numerous donations from varying contributors:

-       Indian donors, usually giving sweets and chocolate ; 

-       German donors, who finance school fees and schooling expenses mainly ;

-       English donors, who finance school fees ;

-       Some private foundations (For instance, Mandala Foundation in 2014) ;

-       The government ;

-       Visitors and volunteers in the orphanage.

In 2014, Siwol’s contributed to 27% of the total expenses. It seems like an important drop, but our contribution is stable in absolute value and it has always been our objective to encourage the orphanage to expend its donors’ base, so that it is not dependent on one single donor!

Again, many thanks to all our donors for their commitment and their contribution to the girls’ future!