An Extensive Guide for Donors and Project Managers
Our foundation has a clear, two-part mission: to provide high-quality support to school children and to run our projects sustainably. To achieve this, we use a simple, transparent financial rule for every Kwacha we raise. This guide explains exactly how your money is budgeted, spent, and accounted for.
Part 1: The Core Principle – The K500 Unit
Our entire system is built around the cost of supporting one child, which we have fixed at K500.
The Budget Promise: The 3:2 Allocation Rule
This is our promise to every donor. Every K500 raised is divided into two strict budget categories using a 3:2 ratio (meaning 3 parts for children, 2 parts for operations).
| Category | Allocation | Percentage | What This Money Pays For |
| Child Development (Tier 1) | K300 | 60% | Direct items and the fun learning experience for the child. |
| Operational Sustainability (Tier 2) | K200 | 40% | The costs needed to run the project, deliver the goods, and grow our reach. |
Part 2: Tier 1 – Child Development (60%)
This budget is dedicated to giving children the essentials they need, delivered in an exciting and memorable way.
What the K300 Covers:
- School Essentials (One or More Items): Funding for vital items that help children attend school, such as a sturdy school bag, stationery, or new footwear.
- Learning Materials: Providing educational materials and brochures to support their learning journey.
- Motivational Fun Meal: A meal or treat (like a popular fast food item or sweets) is provided specifically to bring excitement and joy to the learning session, rewarding participation and making education fun.
Why Quality Over Quantity is Essential
We will never reduce the quality of the items or the meal just to reach one more child. If we have only enough money to fully fund 9 children with the full K500 package, we will fund 9 children. We believe it is better to have a deep, high-quality impact on a few children than a poor, low-quality impact on many.
Part 3: Tier 2 – Operational Sustainability (40%)
This budget ensures that the project can actually run and continue to help more children in the future. Without these costs, the foundation cannot operate sustainably.
What the K200 Covers:
- Logistical Costs: Essential expenses like transport (to deliver goods to the school) and providing meals for the project team and volunteers during the project execution.
- Volunteer Support: Costs that support our volunteers (excluding their personal transport/meals), such as basic equipment or supplies needed to run the session.
- Brand Visibility: Strategic, low-cost spending on materials (like banners or online promotion) to attract new donors and partners, which is necessary for long-term growth.
- Administrative Costs: Essential expenses for managing the foundation, including transaction fees and oversight.
Part 4: Financial Control and Flexibility
We use a strong system to manage how money is spent, which provides flexibility to project managers without breaking the promise of the 3:2 budget.
Rule 1: Controlled Expenditure Variance
While the money is budgeted at 60% and 40%, the actual spending is allowed to shift between the two categories to solve real-world problems (e.g., if transport costs more than expected).
- Minimum Spending Floor (80%): You must spend at least 80% of the budget allocated to any category. For a K500 unit, you must spend at least K240 on Child Development and K160 on Operations.
- Maximum Spending Ceiling (120%): You cannot spend more than 120% of the budget allocated to any category.
- The Zero-Sum Rule: If you spend extra money in one category (e.g., you spend 110% on Child Development), that exact amount must be taken from the other category (meaning you will spend 90% on Operations).
Rule 2: The Project Execution Test
We will never start a project if the 40% Operations allocation is not enough to cover the basic, non-negotiable costs (like transport and security) required to run the project safely and effectively.
- If the 40% Operations budget is too low, the money will be put into reserve.
- It will be combined with future donations until the combined Operations budget is large enough to execute the project successfully.
Rule 3: Managing Unspent Funds
If money is left over after all bills are paid, the funds are managed in two steps:
- Transfer Check: The Project Manager must first check if the surplus can be transferred to the other category, provided the transfer does not push either category outside the 80%/120% variance limits.
- Surplus Authority: Any money that still remains after the variance rule has been applied (the “residual surplus”) must be kept in its original category (Child Development or Operations). The Project Manager has the final authority to decide what to spend this residual surplus on, provided it enhances that same category (e.g., spending Operations surplus on better brand visibility).
This system ensures maximum impact, strict accountability, and the necessary flexibility to deliver high-quality support every single time.