TEAR FundFINANCIAL SUMMARY 2011

Dear Friends,

When I consider TEAR Fund, I’m thinking of something much broader and deeper than an office block and staff. I’m including the TEAR Fund global family, our courageous partners in the developing world, and you our supporters, who by prayer and donations, stand together with us in solidarity as a Christian movement of faith and hope.

All of us together are convinced the world can look different and be shaped by the values of the Kingdom. In other words, we are Christian optimists who base our optimism on the imperative of God to Isaiah, that we are all called to ‘Seek Justice and encourage the oppressed.’ (Isaiah 1:17).

While some of our government funding is down, our donations from supporters, even when we consider the recession and the Christchurch earthquake, have remained strong. Among the highlights for the year reported was your generous help to grow micro-enterprise programmes in both Cambodia and the Philippines that have helped thousands of poor families to economic independence. Your support brought water for drinking and irrigation to farmers and villagers as well as literacy to poor women in central India. You have continued to rally behind us with child sponsorship as well as helping us fight the scourge of child sex trafficking in Asia. I was recently honoured to stand with Mongolian herdsmen and see the pride they had in their food security and planting programme you have helped create. You also overwhelmed us by giving almost $1 million to the flood victims in Pakistan. On their behalf, I want to thank you for your

very generous support. The restructuring of the New Zealand aid programme has had some impact on our funding. Previously, we were essentially ‘bulk funded’ with an assured block grant. The new allocation is based on a more intensive single project focus that requires a demonstration of economic development. This replaces the decades-old ‘poverty alleviation’ perspective. TEAR Fund has always incorporated economic development into its programmes, but has and continues to hold, that poverty alleviation must be addressed first, rather than naively believing in a trickle down, that in reality, never reaches the poorest. TEAR Fund has also had a very strong policy of economic independence and self-reliance, and has never allowed more than 20% of its income to come directly from the government. In fact, rarely has it reached even 15%. That has meant that reduced government funding has not required the radical restructuring many other agencies have faced.

In closing, I’d like to acknowledge the victims and people of Christchurch. Your courage inspired us all. For our part, we provided trauma counselling kits for churches and some respite funding for kids’ camps. What I am left with when I think of Christchurch is that, even with your own crisis, the people and your churches continued to demonstrate compassion for our global neighbours by your giving - awesome and humbling.

Thanks again, for being part of a movement that is touching the lives of the poorest.

In Christ whom we love and serve,

Highlights of 2010-2011 Year

Stephen Tollestrup Executive Director TEAR Fund NZ

Photo by Chuck Bigger, Compassion International

Chairman’s Report2011 will be remembered as a year when disaster came to New Zealand. Often as supporters of international aid we can feel removed from the real people that we are helping. The Christchurch earthquake shattered feelings of security and gave us a very close understanding of the benefits of a supportive international community. Not only the practical assistance they brought, but the knowledge that others cared made a deep impact on us in New Zealand. Likewise, through our involvement with TEAR Fund, we are privileged to offer our support to others around the world.

On behalf of the Board, I would like to thank our donors, churches, advocates and volunteers for their enthusiastic and enduring support during what for many has been a turbulent year. I can assure you that you are making an impact. I would also like to acknowledge our international network of quality partners who enable us to reach out and assist many people and communities globally.

The Board and I would also like to thank Steve and the team for their compassion and devotion for the plight of the poor and oppressed and the creative and enthusiastic way they advocate on their behalf.

I thank God for his calling, direction and blessing on the organisation and the impact it is having on many throughout the world.

I look forward to the year ahead knowing that, through the challenges, we are all part of an organisation that is helping those who need it most.

Gary Agnew Chairman TEAR Fund New Zealand

Photo by Chuck Bigger, Compassion International

Cover image by Chuck Bigger, Compassion International

… If you spend yourselves in behalf of the hungry and satisfy the needs of the oppressed, then your light will rise in the darkness, and your night will become like the noonday.

Isaiah 58:10

Our purpose: The purpose of TEAR Fund is to glorify God by extending His Kingdom in ministry to the poor, oppressed and disadvantaged, and to encourage God’s people in NZ to live out the values and principles of His Kingdom by sharing with those in need.

Photo by Chuck Bigger, Compassion International

1 Colombia: Empowering the Disabled

2 South Africa: Integrated Livelihood

3 Zimbabwe: Foundations Farming

4 Malawi: Agribusiness Development Project

5 African Great Lakes Region: African Great Lakes Initiative

6 Ethiopia: HIV/AIDS Awareness

7 Somaliland: Emergency drought assistance

8 Palestine: Leadership Development

9 Afghanistan: Community Development

10 India: Sustainable Development Project Rural Livelihood Programme Zakhira Community Health Bhiwandi Slum Development

11 Nepal: Anti-trafficking programme Enterprise Development Project

12 Bangladesh: Disaster Management support Women’s Credit Programme

13 Mongolia: Agricultural Cooperatives

14 Cambodia: Education Poverty-reduction Vulnerable Services Unit

15 Indonesia: Gitgit Community Strengthening

16 Philippines: Training Programme Indigenous Peoples’ programme Street Dwellers’ Project Trust Banks

17 Solomon Islands: Truth & Reconciliation Commission

18 Vanautu: Community Development

19 Pacific Region: Ola Fou - Youth Training

COLOUR KEY: Literacy and Education Disaster Microfinance Health Water and Sanitation Agriculture Training and Income generation Peace Anti-trafficking

2

3

5

67

8

10 12

119

4

16

17

18

19

14

15

16

13

1

Where TEAR Fund WorksCommunity Development Projects from around the Globe

FinancialReview Photo by Ben Adams,

Compassion International

The aim of a charity, especially one like TEAR Fund based on a biblical world view, is to endeavour to retain the minimum of funds, and maximise the return for our field partners. Our partners work on our behalf to demonstrate the love and compassion of Christ to those in desperate need.

We try to balance the timing between receiving income and distributing that income to partners and ensuring that the time in between is as short as possible. However, there will always be reasons that make it difficult, and it was at our partners’ request that the distribution of funds last year were delayed, and released over a longer period than normal, especially for our projects in Haiti and Zimbabwe. We are pleased to note that we have now distributed nearly all of these funds during the 2011 year.

Changes in government policy and focus have meant a reduction of government income from $2.5m in 2010, to a little over $500k in 2011. This had an adverse impact on expense ratios compared with last year. However, subsequent to year-end, TEAR Fund has secured two additional government-funded projects in Mongolia and Sri Lanka that over the next three to five years total $2.5m. It remains TEAR Fund’s policy that government funding should never be more than 20% of total income. This reduces the risk of us being exposed to fluctuations from any one source.

In summary, while we sometimes operate in a difficult environment, we continue to give thanks for God’s provision through our supporters, and the commitment of our staff, volunteers, advocates and partners.

Jon Horne General Manager

Income & Expenditure 2011 2010

Income

Private Donations - Designated 10,060,836 10,554,240

NZAID - Development Grants 509,208 2,540,572

Private Donations - Undesignated 421,156 464,776

Other Income - Interest and Events 293,117 317,991

Total Income Donations 11,284,317 13,877,579

Expenditure

Programme Expenditure 8,806,422 10,317,277

Education and Advocacy 178,265 245,437

8,984,687 10,562,714

Marketing and Promotion 1,303,195 1,233,264

Administration 1,495,131 1,585,686

Total Expenditure 11,783,013 13,381,664

Surplus (Deficit) of Income less Expenditure (498,696) 495,915

Statement of Financial Position

Funds

Accumulated Funds 480,191 480,191

Capital Replacement Reserves 229,495 229,495

Designated Funds 3,422,820 3,921,516

Total 4,132,506 4,631,202

Represented by:

Current Assets 6,051,534 6,365,663

Less: Current Liabilities 2,110,883 1,943,723

Net Current Assets 3,940,651 4,421,940

Fixed Assets 191,855 209,262

Total Assets 4,132,506 4,631,202

A full set of audited financial statements is available on request email:business_services@tearfund.org.nz or by calling 0800 800 777

Photo by Ben Adams, Compassion International

What was the money spent on?Administration and Overhead Expenditure 13%

Promotional Expenditure 11%

Education and Advocacy 1%

Programme Expenditure 75%

TEAR Fund’s Ministry 4%

Community Development 17%

Disaster Relief 9%

Microenterprise 7%

Child Development Projects 63%

Project Grants by CountryChild

DevelopmentCommunity

DevelopmentDisaster

ReliefMicro-

enterpriseGrand Total

Africa 174,571 162,477 2,806 64,075 403,929

Cote d’Ivoire 52,115 52,115

Ethiopia 362 362

Malawi 2,806 2,806

Somaliland 40,000 40,000

South Africa 64,075 64,075

Uganda 174,571 174,571

Zimbabwe 70,000 70,000

Asia 1,230,142 22,285 441,449 1,693,876

Bali 44,050 44,050

Bangladesh 8,285 8,285

Cambodia 111,384 80,839 192,223

India 830,859 14,000 5,357 850,216

Philippines 261,197 311,203 572,400

Sri Lanka 6,837 6,837

Thailand 19,865 19,865

Central Asia 220,684 425,441 646,125

Afghanistan 179,304 179,304

Kyrgyzstan 500 500

Mongolia 11,380 11,380

Nepal 30,000 30,000

Pakistan 424,941 424,941

Middle East 63,000 63,000

Palestine 63,000 63,000

Other 325,250 325,250

Haiti 325,250 325,250

Pacific 51,008 113,762 9,400 174,170

Fiji 12,953 12,953

New Zealand 6,941 71,274 9,400 87,615

Samoa 42,488 42,488

Vanuatu 31,114 31,114

South America 30,577 30,577

Colombia 30,577 30,577

Child Sponsorship

5,054,144 5,054,144

Grand Total 5,228,715 1,727,311 889,544 545,501 8,391,071

Donation Income by Category

Colombia Children: 341

Ecuador Children: 327

Nicaragua Children: 250

Honduras Children: 289

El Salvador Children: 221

Guatemala Children: 278

Mexico Children: 154

Ethiopia Children: 856

Kenya Children: 623

Tanzania Children: 551

Uganda Children: 1270

Rwanda Children: 621

Philippines Children: 670

Indonesia Children: 790

Thailand Children: 545

Bangladesh Children: 203

India Children: 1305

Haiti Children: 606

Dominican Republic Children: 298

Brazil Children: 279

Peru Children: 400

Bolivia Children: 402

Togo Children: 85

Ghana Children: 303

Burkina Faso Children: 279

Total Children Sponsored

11,946

National Office PO Box 8315, Symonds St, Auckland 1150, New Zealand enquiries@tearfund.org.nz | 0800 800 777 | tearfund.org.nz

Where Kiwis Sponsor kids