ChoraChori’s performance in 2019

By any standards, ChoraChori had a remarkable year in 2019 at home and abroad.

We’ve been a little quiet over the past couple of months in terms of blogging, a reflection of just how busy it always is at the start of a new financial year (which for us begins on the 1st January). You might imagine that we are taking a well-earned breather after the intensity of Christmas fundraising, including the Big Give public appeals. Instead, we have been intensely busy preparing our annual accounts for 2019 and defining our plans and budget for 2020 and beyond.

The Charity Commission allows a charity up to ten months to file their accounts but we prefer to lodge them as soon as possible so that we can use these to support our fundraising by showcasing our successes. The accounts are a 24-page document (available upon request) that will be formally lodged with the Commission within the coming week, but if you would like to see a summary, don’t be put off by the kid’s gesture and just click on the image to see a fascinating and inspiring overview (thank you to my colleague in Nepal, Rojika Maharjan, for the artwork and presentation!).

The surge in our income is a reflection not only of the continuing generosity of our donors and health of our partnerships, but also of the inherent value of our projects in Nepal. It is also worth pointing out the success of our fundraising. Although we try to get pro bono fundraising support as much as we can, there is no absolute “free lunch” when it comes to that activity. But for every £1 we invested in fundraising in 2019 we got £10 back.

This 10% figure compares favourably with sector averages. The Charity Financials Top 100 Fundraisers report from 2016/2017 found that across the top 100 fundraisers, average fundraising costs were 17% as a proportion of fundraising income. The report gave the following figures for fundraising costs from leading children’s charities:
• UNICEF-UK – 25.5%
• NSPCC – 15%
• Great Ormond Street – 24.9%

A recent study by Factcheck showed that small organisations are more likely to spend more of their yearly income on charitable activities, while ‘super-major’ charities (those with annual incomes of £100 million or more) were found to be spending relatively little on their charitable activities. How has ChoraChori measured up? From the funds we raised in 2019, £252,291 were used in charitable activities. Of this, £235,936 (93.5%) was spent on our Nepal projects, £11,018 (4.4%) on UK administrative support and £5,344 (2.1%) on the good governance of the charity. This is comparable with 2018 when of the £177,180 we spent on charitable activities, £161,206 (90.98%) was spent on Nepal projects, £10,529 (5.94%) on UK administrative support and £5,337 (3.07%) on charity governance.

We keep our UK costs to the minimum by not operating office premises. We are a home-based charity where all utility costs are covered by the CEO/Founder. The unavoidable 2019 UK fundraising, administrative and governance costs were more than covered by regular support from a UK corporate (£3,000 per month, unrestricted), by some grant applications and from Gift Aid reclaims.

The start of the year is always a good time to review personal finances and that includes writing or updating a will. Please do remember our work, ethos and performance after you have made provision for your main priorities. Even a 1% donation could make all the difference to this cost-effective charity that is here to stay and that takes the long view on how to make a lasting difference to the lives and prospects of Nepal’s children.

Remembering ChoraChori in your Will

Remembering ChoraChori in your will is a low cost way of making a major difference to our future work in Nepal, transforming the lives of vulnerable girls for years to come. Here’s some advice.

A will is not something that we like to think about much, but any reputable Financial Advisor will tell you that it’s the first step in drawing up a watertight personal financial plan. Dying intestate passes on an administrative and emotional burden to loved ones that can take months or even years to resolve and result in an outcome that can be substantially to the benefit of the taxman. So, above all, please do write a will and take proper professional advice (i.e. a solicitor) to ensure that your final wishes are implemented properly and that there can be no disputes.

From a charity point of view, leaving a part or your entire estate to ChoraChori can reduce, and in some situations, eliminate your Inheritance Tax liability. If you leave something towards our work in your will, then it won’t count towards the total taxable value of your estate. This is called leaving a ‘charitable legacy’. You can also cut the Inheritance Tax rate on the rest of your estate from 40% to 36%, if you leave at least 10% of your ‘net estate’ to us.

To illustrate how this would work, let’s say that when you died:

  • your net estate was worth £425,000
  • in your will, you left it all to your partner who lives with you
  • you have your full Inheritance Tax allowance (currently £325,000 for the 2018/19 tax year)
  • you weren’t married or in a civil partnership (the spouse exemption is not available if you are not married)
  • thus, the ‘net estate’ is £100,000 (i.e. £425,000 minus £325,000). And there is Inheritance Tax to pay on £100,000 at a rate of 40%
  • so, your estate’s would have to pay a tax bill of £40,000 (i.e. 40% of £100,000).

But if you wanted to reduce the tax bill by making a charitable gift:

  • you’d leave your partner £415,000, and
  • £10,000 to ChoraChori in your will (which is 10% of your ‘net value’ of £100,000)
  • the estate would then pay 36% on £90,000 worth of assets instead. This means that your estate would pay £32,400 in Inheritance Tax.

While this would mean your partner receives less when you die, in this example making a charitable legacy would shave off £7,600 from the Inheritance Tax bill. This is worth considering if you’re keen to support us even after your death.

There’s of course nothing to stop you from giving to ChoraChori right away and any donation won’t be counted as part of your estate when you die. Again, this could cut or even eliminate any Inheritance Tax there is to pay upon death with of course associated Gift Aid benefits while you are still alive.

If you want to leave us a gift in your will, you can leave it either as:

  • a fixed amount of money, known as a ‘pecuniary legacy’
  • a share of what’s left of your estate once all costs and other legacies are paid out, known as a ‘residuary legacy’.

The former can of course effectively decrease in value between the time of the will being written and its being proved, so the latter may give a better reflection of your original charitable intentions.

When you are writing the will make sure that you, or the person writing your will, includes all the information your executor will need to understand what you want to happen. This should include:

  • our name “ChoraChori”, spelled correctly (so there are no arguments!)
  • our registered number – 1159770 – and address – Three Ways, Ledstone, Kingsbridge TQ7 2HQ UK
  • a receipt clause so that our treasurer can accept the bequest
  • a merger clause so if we have merged or ceased to exist, your executor can pay the legacy to the new charity or a charity with similar charitable values.

At the moment we would like to build a fund that will be primarily for the education of vulnerable girls in Nepal, including child rape victims, but of course programmes and priorities can change. So, it would help if interests are stated while leaving the final decisions to the discretion of the Trustees.

If you would like to discuss specific wishes or have any further confidential guidance please contact ChoraChori Founder Philip Holmes using this link.

 

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