How Abraham Kriel Childcare is surviving its reported financial crisis
Shortly before Christmas 2014 the outlook for Abraham Kriel Childcare was bleak, with money in the bank likely to be enough for only another two to four months of operations. An appeal for help went out and the public responded generously.
The outcome is that Abraham Kriel Childcare is still here and still providing services to more than 1 000 children and youth at 13 places in Gauteng, where we provide services to children in need.
Losses came about through reduced income from the state on the one hand, and third-stream income sources not materialising. The combined effect of these losses was R3.3 million. Income from donors was slow, but has improved and allowed us to halt further losses. It has had the impact of buying the organisation time in its recovery strategies.
Despite these hardships, the children were unaffected over the holidays and back to school season. Donors ensured that there were gifts for every child, food and toiletry hampers for every family and fun activities to keep the children entertained. Kids went to school properly equipped.
Short term strategies to ensure that the organisation can sustain its services include:
* Non-payment of 13th cheques to staff.
* Freezing of non-essential vacant posts.
* Suspension of all non-critical maintenance.
* A special emergency funding request to the Department of Social Development and an ongoing interaction concerning sustainability.
* Pursuing new donor funding and leveraging the influence of existing donors and supporters to establish relationships for long-term funding with new partners.
* Sustaining savings that have been achieved and pursuing all possible savings that will not impact negatively on the best interest of the children in care.
Abraham Kriel Childcare is currently engaged in a budget process. The possibility of cutbacks has not yet been eliminated, but can be approached in a more strategic manner. Our situation has improved to the extent that we are facing a deficit of R2.3 million at the end of March rather than the R3.6 million that was projected earlier.
This is largely a consequence of the remuneration sacrifice that we asked our staff to make. Although the situation is having a dampening effect on spirits, it is countered by the encouragement through the many successes of children and youth in all programmes. The fact that children’s lives are still being impacted positively can be attributed to the loyalty and dedication of staff and the generosity of the public.
Please make a donation today to help save our children. To find out more, please contact Hilda du Toit at hdt@abrahamkriel.org or visit the website at www.abrahamkriel.org
Hilda du Toit, Abraham Kriel Children’s Home
