Gloomy outlook for childcare centre

Less than two months before Christmas, the normal excitement and joy of the festive season is replaced by a gloomy atmosphere as the dire financial situation at the Abraham Kriel Childcare home looms over staff and children.

Six months into its current financial year, Abraham Kriel Childcare faces a shortfall on budgeted income of R3.6-million. The 112-year-old organisation will have to make serious decisions to reduce services if the current financial crisis is not addressed soon.

The organisation reduced expenses and saved about R76 000, but had to dip into its emergency fund reserves over the past few months. The monthly cash outflow will consume the balance of the emergency reserves within the next two to three months unless urgent help is received.

The cause of the current struggle is threefold. State funding was cut by R1.2-million. Despite numerous fundraising events and the continued loyalty of donors, donations are below budget by R1.14-million. The usual income from childcare training on behalf of local government has also not yet materialised. The organisation is pursuing all possible income sources vigorously, including an appeal to government for emergency relief.

According to Mr Paul Momsen, the chief executive of Abraham Kriel Childcare, the current financial situation is ironic as it comes at a time when outcomes from their services are exceptionally positive. One Abraham Kriel alumni recently won an international award as the Best Emerging African Film maker. For the first time, an overwhelming number of 14 youngsters, representing more than 50 percent of all school leavers from the centre’s community services programmes in Soweto and Westbury, have approached the organisation for assistance to enrol in tertiary studies next year.

“This, from a community where it was rare to see children completing their schooling, is phenomenal,” said Mr Momsen.

“While we are delighted about their successes, Abraham Kriel Childcare is now battling to fund the basic necessities such as food, transport, utilities, education and clothing.”

When asked about the future viability of the organisation, Mr Momsen said, “We believe we have to restructure to be more sustainable in the long term, while operating in the best interest of the children in our care and in line with the most urgent needs of society. These restructuring processes will be approached with caution. Abraham Kriel Childcare will honour partnership agreements and respect the investment of funders in programmes which, with their help, are currently running sustainably.”

Mr Momsen expressed his concern for the cash flow situation over the next six to 12 months.

“Without the help and support of donors in the very near future, we are unlikely to be able to maintain services at current levels. We are appealing to all existing donors to consider donations to the core costs, rather than the ‘nice to have’ gifts. Sensible and responsible financial contributions could prevent a crisis in the Christmas stocking,” he said.

Abraham Kriel Childcare has been in operation in the greater Johannesburg and the East Rand area since 1902. It currently cares for more than 1 000 children and youth in two children’s homes, seven group homes, four HIV/Aids community programmes, a skills development centre and an early childhood centre.

Visit the website www.abrahamkriel.org for more information about Abraham Kriel Childcare.