World Vision Hong Kong (WVHK), through the trust and support of donors, raised over HK$600 million and helped over 10 million people across 44 countries in the Financial Year of 2009 (October 2008 - September 2009). To ensure that every cent is well accounted for, WVHK continues to control its costs to the minimum. During this past year, only 5.4% of our total income was spent on fundraising and administrative costs, while 93% was allocated to programmes that help children and communities in need - plus 1.6% to educate the public about the causes of poverty.

To enable donors and the general public to understand how donations are effectively and properly used, we have prepared the following Financial Highlights of 2009, Resource Governance and Frequently Asked Questions on our use of funds. We hope that by being a transparent and accountable charitable organisation, you can join hands with us to help more needy children and families in developing countries.

2009 Financial Highlights

This summary was based on the financial information for the year ended 30 September 2009 audited by Ernst & Young, Certified Public Accountants.

Fund and Project Management
World Vision manages all projects and donations independently and there are rigorous procedures to ensure the proper use of donations. Before supporting a project, World Vision Hong Kong ensures the availability of ministry funding and appraises the project plans and budgets based on the needs assessments. All funding and budget commitments follow World Vision's standard policies and procedures and are monitored by World Vision Hong Kong as well as the World Vision office in the project country. After a project is completed, an evaluation is performed to assess the effectiveness and efficiency of the project for future improvement.

Cost Control
Our operations are bounded by strict cost controls. Internal policies and procedures on expenditure are in place to ensure that every dollar raised is properly used. During this past year, only 5.4% of annual income was spent on administration and fund-raising, while 93% of our income was used for international relief and community development programmes and reserves, and 1.6% for public education.

Audit Committee
The Board of Directors set up an Audit Committee in 2003. The Committee comprises three members; its membership is reviewed every two years by the Board. The current members are Mr. Fun-kuen Au (Chairman), Prof. Joshua Sook-leung Wong and Mr. Kai-man Wong. The Committee considers the appointment and the audit fee of the external auditor, discusses internal and external audit matters, and reviews the annual financial statements and internal control system.

External and Internal Audit
World Vision Hong Kong has appointed Ernst & Young to perform the annual financial audit. Various fund-raising activities and relief projects funded by government grants are also audited by external auditors as required by the Hong Kong SAR Government.

To ensure ministry quality and the proper use of funds, and that internal monitoring mechanisms are properly in place, the World Vision International Office and the project offices around the world have established their own internal audit department. Annual audits and operational audits are performed regularly. Each World Vision project office undergoes an independent audit every three years, executed by the World Vision International Office. World Vision Hong Kong has also established an internal audit function for many years to enhance internal control and to improve cost efficiency and effectiveness.

Frequently Asked Questions

1. Does the money I give actually get through?
2. How much do you spend on overheads?
3. Are my contributions to World Vision tax-deductible?
4. Is being or becoming a Christian a prerequisite for receiving help?
5. How can I know more about World Vision's funding allocation?

1. Does the money I give actually get through?

YES! World Vision manages all projects and donations independently and there are rigorous internal audit procedures to ensure the proper use of donations. In addition, audits are conducted every year to account for every dollar received and we have a policy of hiring auditors of the highest professional reputation to ensure our financial statements give a true and fair view of the state of our organisation. The Financial Statements for the Year 2009 were audited by Ernst & Young in accordance with the Hong Kong Companies Ordinance and Statements of Auditing Standards issued by the Hong Kong Society of Accountants.

Many donors have joined our Supporter Tours in which they have seen for themselves that not only does their money get there, but that it is wisely used to improve the lives of the children and their communities.

2. How much do you spend on overheads?

World Vision commits to make the best use of its donations. During the 2009 financial year, administrative and fundraising costs were 2.2% and 3.2% respectively, while 94.6% of total revenue was allocated to international programmes as well as public education. Without the subvention of government, a certain amount spent on administrative cost is necessary to ensure that services are of good quality. Our rate compares favourably with similar organisations in Hong Kong that raise funds in the same manner and for the same purposes.

For emergency relief appeals, over 98% of donations are used directly for relief and rehabilitation work and less than 2% are spent on fundraising cost.

Donations for Sichuan quake relief are fully allocated to World Vision work in the affected regions. This policy was already in place during relief work for the 2004 South Asia tsunami.

3. Are my contributions to World Vision tax-deductible?

Yes, if your total annual charity donation exceeds HK$100, your contributions to World Vision are tax-deductible as per the Inland Revenue Ordinance. World Vision Hong Kong provides receipts for all donations, regardless of the amount. To encourage charitable donations, the HKSAR Government exempts up to 35% of assessable income or profits on donations to recognised charitable organisations starting from the financial year 2009-2010. World Vision Hong Kong is one of these organisations.

4. Is being or becoming a Christian a prerequisite for receiving help?

Being or becoming a Christian is never a prerequisite for receiving help. World Vision's assistance is offered to people in need, regardless of religion, race, ethnicity or gender.

5. How can I know more about World Vision's funding allocation?

The general public can know more about World Vision's funding allocation through several ways:

ShiQing and Vision Voice (World Vision's bimonthly Chinese magazine and English newsletter) - they keep donors up to date on latest news of developing countries and World Vision's global ministries.

Annual Report - it summarises World Vision's work and financial report of the previous financial year. (click to download: Annual Summary Review 2009)

Supporter Tours - donors can visit World Vision's projects in the developing countries to see in person how their assistance changes the lives of the poor.

For further enquiry on our use of donations or if you would like to receive a copy of our newsletter or Annual Report (full version), please contact us on 2394 2394 or at hotline@worldvision.org.hk