JOHANNESBURG SOUTH – A few weeks before Christmas, the normal excitement and joy of the festive season is replaced by a gloomy atmosphere as the dire financial situation at Abraham Kriel Childcare 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 very 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 with R1.14 million. The usual income from childcare training on behalf of the 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 Paul Momsen, 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 best emerging African filmmaker.
For the first time an overwhelming number of fourteen youngsters, representing more than 50 per cent of all school leavers from their community services programmes in Soweto and Westbury, have approached the organisation for assistance to enrol into tertiary studies next year.
This, from a community where it was rare to see children completing their schooling, is phenomenal. While they are delighted about their successes Mr Momsen warns that this is an added concern. “Abraham Kriel Childcare is now battling to fund the basic necessities such as food, transport, utilities, education and clothing.”
Mr Momsen added that: “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. ”
Abraham Kriel Childcare has been in operation in greater Johannesburg and the East Rand 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 development centre. Abraham Kriel Childcare has a reputation as an accountable and transparent organisation with excellent governance systems.
Donors contributing to the organisation can count on both a tax benefit and points earned for the SED element of their B-BBEE scorecards.
For additional information about the Abraham Kriel Childcare, go to www.abrahamkriel.org
