Does NKF have $27 million more in the kitty now than it had in 2005?

~by: Leong Sze Hian~

I refer to media reports that the National Kidney Foundation (NKF) is raising funds from the general public again, after a hiatus of about five years. It has launched a “give $1 a day to help sponsor artificial kidneys” campaign.

According to NKF’s website (see HERE), the Ratio of reserves to annual operating expenditure is 4.71. However, this is based on the assumption that there are no donations or investment gains/income in the future.

In this connection, donations and investment gains/income for last year was $24.5 and $5.9 million, respectively. Its Total Funds also increased from $284 to $290 million, and its operating surplus was $5.7 million.

More reserves funds now than 5 years ago?

This means that it has about $27 million more in its reserves (Total Funds) now than when the NKF scandal broke in 2005, as its Total Funds for the year ended 2005 was $263 million.

If donations and investment income and any increase in the Total Funds are included, what would its Ratio of reserves to annual operating expenditure be?

If we deduct the total of $30.4 million from donations and investment income, from the Total Expenditure of $58.2 million, the figure is $27.8 million.

How many years’ reserves?

So, does it mean that on this basis, the Ratio of reserves to annual operating expenditure is about 10.4? Does this mean that it has reserves to last about 10.4 years, instead of 4.7?

Annual operating surplus?

If we include the income from dialysis activities (programme fees which is payments from patients and grants/sponsorships) of $32.3 million, does it mean that it may have enough reserves to last forever, since it is operating with an annual surplus of $5.7 million? In this connection, perhaps it could consider raising funds again only when it starts to operate with a deficit.

So, is there really a need to start raising finds again as the NKF is still the largest (by reserves) Voluntary Welfare Organisation (VWO) in Singapore, considering that many charities may still be reeling from the economic slowdown, given its relatively sound financial situation?

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