Development Ratings

New Executive Director Anthony Godson was previously British High Commissioner to Mauritius. He took over in late 2007 following the previous director’s retirement. One of the key features of the charity, however, is that there is very substantial hands-on support from many of the Trustees. A number of the Trustees are former diplomats with experience in Asia, or are experts in Oriental or Asian studies or cultural collections. They include several Burmese speakers.

Prospect Burma has only two part-time staff, so costs per employee are low at £9,000. Committed and experienced volunteers put in a great deal of their time to support the charity. The organisations that the charity funds in India and Thailand have no Prospect Burma employees. The charity has an agent in Delhi and Chiang Mai respectively, who are paid a modest fee to help with scholarship programmes in India and Thailand.

Since 1991, Aung San Suu Kyi has annually donated part of her investment income from her Nobel Peace Prize winnings and other prize money to Prospect Burma. The exact amount is not publicised but was around 12% of 2006 income. Financial support also comes from the US State Department (it places no conditions on the charity) to the tune of 25% of income in 2006. A new two year commitment to Prospect Burma was authorised in late 2007. Laura Bush takes a personal interest in Burma. (DfiD has historically not awarded grants for scholarships.) The balance of funds is provided by regular scholarship adoption and partnership schemes, fundraising events and admirably high levels of donations from individuals. These appear to support the charity out of both an interest in the Orient and a passion for education and democracy.

Before 2006, fundraising costs were included under the administrative expenses figures in the Report & Accounts, so the pre-2006 ratios for fundraising and administrative expenses are not representative. Administrative expenses include very economical office space. Fundraising efficiency is healthy, only slightly above best practice, which is to be expected given the high levels of individual donations.

Some expenses in 2007 rose faster than scholarship awards but this has improved in 2008. University fees are rising so average awards must rise. Administrative expenses are being controlled.

The reserves development is deceptive due to timing effects. The majority of the organisation’s income is received in the first half of the year, the financial year end is in March, and the payment of scholarships generally takes place in the summer. As a result, the reserves at the year end tend to represent as yet unpaid scholarships, rather than unreasonably high reserves or cost coverage levels.

Income and expenditure are matched, meaning that there is no potential mismatch of resources should income vary. The State Department income is dependant on approval by the US authorities.