Development Ratings

CEO, Simon Maddrell, has a commercial management background after taking a degree in Peace Studies. Joshua Mukusya, the local director in Kenya, developed the original concept of the sand dam. He had many years experience of successful community dam building before establishing the charity with Simon. There are now 4 field managers and 13 field officers supporting Joshua’s work in Kenya. Trustees include finance professionals and business owners, as well as a trustee of Andrews Charitable Trust (ACT). Lord Joffe, an international human rights lawyer and past Chairman of Oxfam, is a high profile patron. There are currently four UK staff plus volunteers, and 32 employees in Kenya plus casual labour.

Excellent Development is one year into a five year grant from Andrews Charitable Trust and Four Acre. The grant of £530,000 is to fund the charity’s administrative and office infrastructure development in the UK and Kenya. It funds new staff members to develop fundraising and administration, as well as office and computer equipment to increase efficiency. This innovative commitment to core funding is an example of restricted funding that is designed to develop a charity’s capacity and impact without hampering its operations. Part of the grant is allocated across normal charitable functions but the excess is shown separately. This, along with quite high UK support costs, results in a higher administrative expenses ratio than ideal.

We have curtailed the previously forecast rapid income growth a little, due to concerns over donations during the current global economic difficulties. Expenditure is largely matched to income each year, however. Plans to 2011 are ambitious but looking mostly achievable. Dam building demand remained good in 2008. The charity’s operations were not affected by the 2008 post-election troubles. There may be knock-on effects on tourism and the Kenyan economy, however. This might result in increased demand as communities realise that they should develop their self-sufficiency in times of difficulty as government spending may have to be held back. The programme ratio, stripping out the infrastructure development costs, is sound but is below best practice when the infrastructure investment is included in total expenses over the grant’s five years.

Reserves growth has been highly variable, but improved in 2008. It is likely to stabilise over the next few years. This will improve the reserves costs coverage, allowing better flexibility.

The administrative expenses ratio is distorted by the development grant. From 2008 onwards, we have decided to include the unallocated development spending and the UK support costs with governance to reflect administrative expenses. UK support costs are rather high, but it is assumed that the development grant will help increase efficiency in this area as the charity grows.

Overseas development spending in 2008 was: dam building 56%, tree planting 10%, workshops, exchanges & training 15%, water tanks & pipes 9%, food production & security 6%, other activities 4%.

Fundraising efficiency is above best practice. This is due to the costs of running expeditions and marketing, communication and PR costs all being accounted for under fundraising.

Sources of income in 2008: voluntary trusts’ fundraising 27%; fundraising (trusts) in Africa 33%; development funding 19%, expeditions & events 7%, public fundraising (internet & manual) 3%; other 11%. The quoted charitable, foundation and institutional income is 79%, much of it from Africa.