2012 Annual Report: Part III06.23.2012
By The Numbers
The 2012 Annual Report wraps up with numbers that demonstrate and support our model. As an organization we strive for transparency. The letter below from CFO Travis Hartanov explains our model and why we are excited about it.
Krochet Kids international Was founded upon a unique model that leverages non-profit ideals with sound business strategies to provide lasting and holistic care to those living in poverty. To this day, we stand proudly as a registered non-profit organization in order that we may accomplish our mission to its fullest extent. In looking at our finances you will notice that 86% of our total income was generated through product sales in 2011, from which we established a 70% profit margin. This is unorthodox for a non-profit organization, but here are three reasons why we are excited about this approach..
1. We exist to empower people to rise about poverty. Our programs are set up to give the best, most relevant care to those that we work with. This structure creates a revenue model that sustains our work through product sales while at the same time ensuring our programs always take priority over profitability solely.
2. We provide transparency to our customers so they may have the confidence that their purchases are indeed making a difference. Not only do we invite them to meet the lady who made their product, we also make our finances available for them to see. Our customers play a vital role in sustaining our programs and we consider them partners in enabling us to accomplish our mission.
3. The role of the donor is important and unique as well. The impact of contributions has an exponential impact that keeps our programs running successfully. The work we do could not become sustainable without the initial financial commitment from donors. We raised money for the initial three years of our first project location in Uganda. However, since the beginning of 2011 this project has been funded solely through the profit made through product sales, and this enabled us to focus our energies on starting a new program in Peru!
We are reinventing what it looks like to create sustainable change for individuals and communities around the globe. Join with us.
CFO, Krochet Kids international