Knysna is not the home of any significant corporate organisations and consequently the Trust relies on the goodwill of its community and businesses that are highly reliant on tourism and very cyclical economic conditions.
The Garden Route and Knysna in particular have been severely affected by the current global and local economic depression that means that more children and preschools are in need of support. The government’s intent to improve Early Childhood Development services for preschool children across the country has resulted in funding being made available through the Department of Social Development to achieve this goal. The DSD has opted to leverage structures such as the Knysna Education Trust, NPOs already in place with a track record, to assist with executing their goal of providing improved ECD services to all preschool children.
This financial year 50% of the Trust’s operating costs is covered by the Department of Social Development grant. The current average operating cost for implementing the different projects is 15%. In order to fund annual projects and cover the remaining administration costs, further fundraising efforts include corporate appeals, grant applications through Foundations, annual fundraising events and development of a product based passive income stream generator.
Keeping costs as low as possible, without sacrificing the quality or quantity of the work, makes it much easier to implement an effective financing and funding strategy. Not only is less money needed, but donors can see that their money is not wasted. Our competent employees and general efficiency in our organisation is key to our success and sustainability. Administrative cost for project execution currently averages out at 15%.
The Trust focuses on careful costing, cost control and close monitoring of finances. As an organisation, we take this very seriously, as it has the potential to undermine all our efforts in other areas.
In order to ensure that it supports these efforts, rather than undermining them, we follow strict procedures:
The financials are reviewed monthly at the Trustees meeting to ensure fundraising efforts remain on target and project budgets remain within set parameters.