Sustainability

The Trustees' strategic financial objective is to make the Project self sufficient in respect of its annual running costs through a combination of endowment income and regular standing orders. Although local salary and other living costs are low by UK standards, Tanzanian inflation is running at a high level and is constantly pushing up the annual income target and this has recently been exaggerated by the weakness of Sterling.

At the time of writing (April 2010), the Zawadi School, paid for from the General Fund, has recurrent annual costs of £22,000 of which salary costs for a local team of 14 account for £14,600. Recurrent income from the endowment fund and from standing order donations covers some £13,000 of this. This leaves just over £9,000 to make up from other sources, primarily one-off donations and various fund raising activities. Capital and other non recurrent expenditure amounted to almost £15,000 this year meaning that a total of £24,000 has had to be raised other than from predictable income.

The Nigel Lloyd Fund is committed to meeting the long term educational costs of, at the moment, 132 orphans. We plan to add more each year, subject to a cap of 150 to keep the programme manageable. The cost of this (which includes help with living essentials and medical care) is running at £11,600 annually, but this can also be expected to rise steadily. Separately, the running costs of the new library project are running at £6,000 annually (75% of it being the all important cost of feeding the children). Recurrent income (again from standing orders and a separate endowment fund) is running at only £3,100 so that a further £14,500 is having to be raised from other sources, on top of the expected £35,000 cost of the proposed library building.

The Trustees aim to ensure that 100% of donations go to the above programmes on the ground in Tanzania. All the costs incurred in the UK in managing the Project, including necessarily substantial travel costs, are paid for out of income which is not donated (for example sponsorship and gift aid). To date this aim has been comfortably achieved.