Financial information - Zamcog’s Predecessor Total use of funds from 2003 to 2010

As noted in the Structure section, the bulk of the funds raised to

date were raised prior to the establishment of Zamcog as a charitable
company in 2010. The earlier funds were raised under the umbrella
of the Brothers of the Sacred Heart, mostly in the UK and some in the
US. The historical books and records of the Zamcog committee of the
Brothers of the Sacred Heart in the UK (representing 83% of funds
raised), are embedded within the audited financials of the Brothers of
the Sacred Heart charity 231733, which include items other than the
Zamcog Committee.

You may find introductory information on the charity here:

www.zamcog.org.uk/doc/charityinfo

You may find links to the 2009, 2008 and 2007 accounts here:
www.zamcog.org.uk/doc/accounts

More relevant, however, are the unaudited financials of the committee

– Zamcog – which are shown at the end of this presentation and in
summary format in the accompanying pie chart. Please note that over
the period of 2003- 2010 just over £1,000,000 was raised. Nearly
£981,000 has been spent and the balance of funds have been, or will
soon be, transferred to the new legal entity – Zamcog.

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Sources of Zamcog Funds
Funding to Zamcog is provided through a diversified donor base. The majority of
donations have come from individual donors, and to a lesser extent, corporate sponsors,
through requests for donations or sponsorship of pupils, charity events (dinners, auctions)
etc. Many of our donors are repeat donors and have supported Zamcog over a number of
years.
Zamcog has received grants totaling £230,000 (£180,000 to the old Zamcog committee
and more recently £50,000 to the new legal entity Zamcog). This is an area we would
like to expand going forward. To date it has been difficult as many corporate entities have
policies against supporting religious organizations. Because we were raising funds through
the Brothers of the Sacred Heart charity, we were not eligible for many grants. With the
new Zamcog entity that is NOT a religious entity, we expect to access a broader donor
base more readily and in fact received our first £50,000 grant in June 2010.
39% of funds expended have been to fund the direct operations of the school and
dormitories – everything from teacher stipends, food, salaries for general staff,
maintenance, fees for kids at outside schools, medical, etc. Our current run rate for
operations is approximately £12,000/month.
Financials of the new Zamcog
The newly incorporated Zamcog could not receive funds until it’s charity number was
assigned in late May, 2010. Certain payments continued to be made to the old Zamcog
committee as the UK Revenue has not yet assigned a tax reference number for the new
entity. However, £86,076 has been raised in the name of the new Zamcog. Funds have
been expended as shown in the pie chart below.

Uses of Funds Admin £1,258.29

Administrative costs are kept extremely low (below 2%) as there is little overhead in the Fundraising £34.71

UK (payment of legal fees, bank fees, web site fees, but little else). There is no paid staff School ops, Capital items £25,861.10

in the UK and no office to maintain. We sent several containers to Zambia in the early Construction £21,299.96

days as we received donations of large items like freezers, desks, office furniture etc. We Total £48,454.06

carefully analyze the cost of shipping versus sourcing things in Zambia.

Fundraising costs are primarily those related to fundraising events we have hosted and
they represent less than 15 % of funds raised. To date, over 40% of funds expended have
gone to building the physical infrastructure of the school, dormitories, dining hall/kitchen
complex, ablutions, etc.

Zamcog, education for change - Winter 2010 15

Reporting
In the UK, receipts are tracked and deposits are made to the UK banking account. The
charity is registered with Virgin Money and donations will be received through that
source and credited to our bank account as well. Monthly operating funds are sent to
Zambia and then additional funds (for unexpected or one-time unbudgeted items and
special projects, including construction), are sent as needed. In Zambia, all funds are
received to a US dollar denominated account at Zanaco Bank. As needed, funds are
withdrawn or transferred to a local currency kwacha account.

While Zambia is largely a cash based economy, we have been transitioning to making as
many payments as possible by cheque, where practical. All payments are tracked by our
onsite bookkeeper and receipts are filed. Then a summary Expenditure statement is sent
to the trustees in the UK monthly.

All bank transactions require two authorized signatories. The bookkeeper does not have
signing authority on the bank accounts so his recording of all transactions is independent.

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