1

TEAR FundANNUAL REPORT

2014

2

DEAR FRIENDS AND EXTENDED TEAR FUND FAMILY

Thank you for journeying with us over the past financial year. It’s been an action-packed roller coaster of a year with many changes both on the world stage and for us at an organisational level. We’ve faced multiple disasters and political upheavals, fought the depravity of human trafficking and contended with crushing poverty.

Over the course of the year, we also saw amazing hope through hundreds of Kiwis who chose to extend their hearts to sponsor children overseas on TEAR Fund’s Compassion Day. As well as this, we provided fast and effective aid delivery to disaster-affected areas of Syria, Philippines and the Solomon Islands, and strengthened partnerships that allowed us to challenge human trafficking in its various guises. We featured at the forefront of New Zealand media, speaking on issues of development, human trafficking and social justice, and inspired thousands of churches and new supporters to take a stand in the war against injustice and poverty.

But these successes are yours, not ours. We want to thank you, personally, for trusting and supporting us to advocate on behalf of the poor. We feel privileged to serve an organisation that’s entrusted with the task of helping to transform lives, making hope and opportunity realities to people in 45 countries across the globe.

A key initiative for TEAR Fund this year was the launch of our new anti-trafficking regular giving programme, Project Act. As well as supporting our current anti-trafficking partner Share and Care Nepal, we partnered with a New Zealand and Thailand-based organisation called Nvader. Nvader works to rescue women and children from human trafficking in Southeast Asia bringing justice through the prosecution of traffickers. With 44 survivors of human trafficking rescued and placed into aftercare and six offenders prosecuted through our partnership with Nvader (January to June 2014), we’re making great progress through strengthening our approach to fighting trafficking.

In closing, we would like to thank all of the incredible people who make up the TEAR Fund family, whose passion and drive continue to inspire us on a daily basis. What an honour it is to serve alongside you!

Blessings and regards,

IAN MCINNES – TEAR FUND CEO GARY AGNEW – BOARD CHAIRMAN

WELCOME

3

ABOUT USTEAR Fund New Zealand is a Christian relief and development organisation. We’re passionate about addressing poverty in all of its distressing disguises, through disaster relief, community development and child sponsorship. We partner with faith-based organisations all over the world, which use their local knowledge and experience to maximise the impact of alleviating poverty in poor, marginalised and oppressed communities.

We believe in the inherent value of each human being and work hard to reduce poverty by connecting people with the missing opportunities they need.

VISIONDriven by a hunger for justice and a deep compassion for the vulnerable and oppressed, TEAR Fund’s vision is to see individuals and communities around the world transformed, with hope, opportunity and dignity realised for all .

4

OVERALL SPENDINGIn the current financial year, we have given $9.6m to our partners, which are implementing a variety of projects around the world. We also spent $340k funding education and advocacy work within New Zealand, as it is important that our own communities understand the poverty and oppression of the world in which we live. We ended the year with an operating surplus of $688k, which is designated for projects in the 2014–15 financial year.

CHILD SPONSORSHIPChild sponsorship continued to be an effective way for supporters to connect with underprivileged children across the globe. A total of $7.4m was raised to provide for the needs of these children.

GOVERNMENT SUPPORTWe received $1.4m of government aid which continued to support various key projects around the world. These projects included agricultural and livelihood programmes within poor farming communities in Mongolia and Sri Lanka as well as health and education programmes in the slums of New Delhi, India.

FINANCIAL REVIEW

A full set of audited financial statements is available on request.Emai l : business_services@tearfund.org.nz

One of the aims of an organisat ion l ike TEAR Fund is to endeavour to maximise funding for our partners,

who are working on our behal f to demonstrate Chr ist - l ike compassion with those in need.

5

2014 2013

ASSETS

Current assets 7,364,728 5,698,744

Fixed assets 156,712 200,578

Total assets 7,521,440 5,899,322

LIABILITIES

Current liabilities 2,624,434 1,690,386

Total liabilities 2,624,434 1,690,386

FUNDS

Designated funds 4,306,800 3,618,730

General funds 590,206 590,206

Total funds 4,897,006 4,208,936

STATEMENT

OF FINANCIAL

PERFORMANCEfor the year ended 30 June 2014

STATEMENT

OF FINANCIAL

POSITIONas at 30 June 2014

2014 2013

INCOME

Non-government income 11,947,509 10,952,052

Government funding 1,408,850 886,739

Interest received 240,152 244,925

Net sales revenue (fund raising) 7,869 –5,148

Total income 13,604,380 12,078,568

EXPENDITURE

Programme grant expenditure 9,562,217 8,680,892

Education and advocacy 340,435 367,039

Promotional expenditure 1,331,592 1,293,231

Administration 1,682,066 1,501,597

Total expenditure 12,916,310 11,842,759

SURPLUS/(DEFICIT) 688,070 235,809

DONATION INCOME BY CATEGORYas at 30 June 2014

62%

9%

4%

6%

19%COMMUNITY DEVELOPMENT$3,180,834

CHILD DEVELOPMENT$7,460,896

DISASTER RELIEF$1,604,639

MICROENTERPRISE$684,279

TEAR FUND’S MINISTRY $673,732

$13,604,380TOTAL INCOME

6

7

WHAT WAS THE MONEY SPENT ON?as at 30 June 2014

74%

13%

10%

PROGRAMME GRANT EXPENDITURE$9,562,217

ADMINISTRATION AND OVERHEADS EXPENDITURE$1,682,066

PROMOTIONAL EXPENDITURE$1,331,592

$12,916,310TOTAL GRANTS AND EXPENDITURE

3%EDUCATION AND ADVOCACY $340,435

DISASTER RELIEF

“We were so grateful that TEAR Fund and i ts partners chose our community and I know that your

organisat ion wi l l cont inue to help us in any way unt i l we recover and are able to stand again on our own, and that wi l l be soon. Thank you for the hope you

brought to our people, to every family.”/ PEDRO CINCO, PHILIPPINES /

It is imperative that we respond in a timely manner when disasters occur, in order to alleviate unnecessary suffering. That’s why we’re part of a global network of 20 Christian organisations called the Integral Alliance, which respond quickly and effectively, pooling resources and funds to work more efficiently across the globe.

PHILIPPINES – TYPHOON HAIYANShortly after Typhoon Haiyan ripped through the Philippines, TEAR Fund’s partner was on the ground working with the most vulnerable communities. We delivered the following emergency items to the devastated areas of Western Samar and Eastern and Western Visayas:

• Food Rations to 2,000 families • Blankets, sleeping mats, kitchen kits, torches and water containers to 5,820 families• Emergency shelter of good-quality vinyl, marine-grade rope, tie wire and nails to 740

households

8

9

AFTER THE FIRST RESPONSEFollowing a disaster, children are most at risk, from exploitation and neglect. To combat this risk, child-friendly spaces were established where children learn, play and receive valuable life skills. This initiative supported over 2,000 children. Some of the most vulnerable children also attended trauma camps, where they were given specialised trauma care.

LEBANON-SYRIA REFUGEES It’s been almost four years since Syria erupted into civil war and millions of refugees began pouring into neighbouring countries for safety. With the help of our partners, we have been working to ensure refugees have been able to survive the freezing winters. In November 2013:

Because we responded so quickly and had the local church ready to go on the ground, we were able to secure funding from the New Zealand Government. That funding, combined with your support, we gave $453,778 to this crisis.

SOLOMON ISLANDS FLOODSFollowing the floods, many families lost their crops, leading to a loss of food and income. We assisted 380 families in replacing their crops by providing seeds, tools and agricultural training.

• Hosted 12 training sessions on crop, plot and pest management • Distributed seeds and tools to 380 households• Enabled 320 households to deliver their crops to the market• Provided financial assistance to cover families’ essential needs as they regrew their crops

475 families received FUEL VOUCHERS so they had fuel

for their stoves over the winter

2,575 families received FOOD

ASSISTANCE

11,580 families received BLANKETS AND MATTRESSES

to help keep them warm

we provided $3,500 worth of WINTER FUEL to an orphanage that is assisting Syrian children

526 STOVES were distributed to families living in colder-

weather regions of Lebanon

100 WATER FILTERS were purchased to improve the

water quality

The most vulnerable children in some of the world’s poorest communities participate in the child sponsorship programme of TEAR Fund partner, Compassion.

Children receive educational opportunities, regular medical check-ups and nutrition, and participate in programmes delivered by local churchs. For an extra cost of $10, ‘Sponsorship Plus’ provides emergency medical care, parent education, HIV/AIDS awareness, support for registered children awaiting sponsors and various community development initiatives.

A SNAPSHOT OF THE YEAR • TEAR Fund is changing lives in 28 countries• Currently, 12,540 children are currently sponsored through TEAR Fund • During the last year, 960 children were sponsored for the first time

CHILD SPONSORSHIP

*In 2013, the first peer-reviewed study led by top US economist Bruce Wydick, University of San Francisco, tested the effectiveness of TEAR Fund/Compassion child sponsorship in a comprehensive study spanning 10 years and six countries. Read the entire report on our website tearfund.org.nz/wydick.html

CHILD SPONSORSHIP WORKS! *

27–40%more likely to

FINISH SECONDARY SCHOOL

50–80% more likely to

COMPLETE TERTIARY EDUCATION

35% more likely to

have a WHITE-COLLAR JOB as an adult

35–75% more likely to

BECOME COMMUNITY LEADERS

Chi ldren sponsored through Compassion were:

10

Kiwi woman gives away sponsored child in marriage

For two decades, Kiwi teacher Susan Snowball exchanged letters with her sponsored child in Uganda but she never imagined that one day she’d watch her walk down the aisle. Susan had been supporting

Adellah through TEAR Fund’s Compassion sponsorship programme since Adellah was six, and came to love her like a daughter.

Adellah entered into the sponsorship programme when her father passed away. “My mum was left to take care of six kids.

We used to live in one room and my mother struggled to provide for our needs. I was thrilled when I heard that I finally had a sponsor.”

With Susan’s support, Adellah was able to finish high school and attend university, and now she works as a communications specialist at Compassion Uganda.

In June 2014, Susan received an invitation to attend Adellah’s wedding. When the two finally met at the airport in Kampala, there were hugs, kisses and tears all around. On the day of the wedding,

Susan was there to give Adellah away and stand alongside her mother, who had worked so hard for her family.

For Susan, the highlight of the trip to Uganda was seeing firsthand the impact of her decision to sponsor a child. “We are just an average-income family but it’s such a small cost to be a big

gift to them. I’d encourage anyone considering sponsoring a child to do it. My experience has been truly wonderful.”

1 1

Community development is about creating the environment and infrastructure to help improve the quality of l i fe of the poor we work with. We recognise the strengths that exist in the communit ies and preserve the inherent dignity of those we help. Everything we do is through local partners who consult with the communit ies about the projects before they proceed.

Community development involves ensuring communit ies have access to:

COMMUNITY DEVELOPMENT

CLEAN WATER

MEDICAL CARE

INCREASING HOUSEHOLD

INCOMES

NUTRITIOUS FOOD

EDUCATION AND EMPOWERMENT

We have a range of programmes al l around the globe making a di f ference for the world’s poorest .

12

13

HERE’S A SNAPSHOT OF OUR COMMUNITY DEVELOPMENT WORK:

CASH COWS IN AFGHANISTANWe are working in the hard-to-reach areas of Afghanistan, helping families meet their income and daily food needs by gifting animals. After the animal that was given to that family gives birth, the offspring is given to another vulnerable family.

“As a family, we were in a lot of debt and I had to work as a labourer just to make ends meet. After I was given a heifer, we were able to make cheese, yoghurt and ghee and sell them at the local market. Because of the cow, we can now pay back our debts.” / Jamal Uddin, Afghanistan /

You can help us continue the cycle of generosity by purchasing a cow for a family like Jamal’s through the Gift for Life catalogue. For more information, visit giftforlife.co.nz

REBUILDING SHATTERED LIVES IN SRI LANKAOur dairy project in Sri Lanka is helping rebuild shattered lives following Sri Lanka’s civil war and is bringing Tamil and Sinhalese farmers to work alongside each other. With the expertise of private New Zealand dairy companies, alongside our community development approach, we are helping war-torn families to stand on their own feet again, making a return to conflict far less likely. Here’s what we’ve achieved in the past year:

• 1,500 farmers are participating in the project • Women make up one-third of the farmers • All farmers have access to veterinary support and a veterinary surgeon • Twenty-six dairy farmer cooperatives have been set up and registered with the Government • As the project enters its third year, some farmers are supplying 15L/day, a 400 percent increase

from an average of 3L/day before the project began

HEALTHY COMMUNITIES IN INDIAIn some of the poorest slums of India, our partner ASHA is delivering basic healthcare education initiatives and empowering communities to seek better outcomes for themselves. Here’s what we’ve achieved in the past year:

• Two community health and support centres have been established• Ten community health volunteers have been trained• We have conducted 420 health and reproductive awareness workshops• In all, 900 have learnt about their rights as citizens after attending the human rights community workshop,

giving them the confidence to approach the Government for basic services • A total of 720 people attended livelihood workshops and training covering business start-ups, financial

literacy, business development and marketing • Alltogether, 700 ground-breaking telemedicine examinations were held with patients

JOINING FORCES FOR GOOD For more than 15 years, TEAR Fund has been fighting trafficking with Share and Care Nepal and has collaborated with other global anti-trafficking organisations. This is a complex issue. Human trafficking sees poor families fall prey to the promises of traffickers; corrupt officials turn blind eyes to transactions taking place and young women and children coerced and sold into the sex industry.

This is why we offer a holistic response, which includes prevention, rescue, rehabilitation, prosecution and empowerment.

In 2014, we joined forces with anti-trafficking agency Nvader. Nvader is a team of Thai and Kiwi police, investigators, social workers and lawyers who work together to prosecute the traffickers and restore trafficked girls to freedom.

KIWIS GIVING REGULARLY We established a regular giving programme, Project Act, to ensure that Kiwis who are passionate about making a difference in this fight against trafficking can do so. Visit projectact.org if you want to join the fight.

ANTI-TRAFFICKING

14

Share and Care started a NEW PREVENTION PROJECT in another vulnerable community on the India/Nepal border

PARTNERED with a new anti-trafficking organisation Nvader

TV personality PETRA BAGUST came on board as a TEAR Fund anti-trafficking ambassador

Funded 44 RESCUES

Helped Nvader bring SIX OFFENDERS TO JUSTICE

Enabled Nvader to open a NEW OFFICE in Thailand

EMPLOYED a dedicated lawyer to ensure cases proceed through the judicial system

Share and Care Nepal DELIVERED a trafficking awareness, education and prevention programme in the Makwanpur district in Nepal

WHAT HAS BEEN ACHIEVED IN THE LAST YEAR

IN 2013, 300 PEOPLE, WHO CHOSE TO LIVE ON $2.25 PER DAY FOR FIVE DAYS FOR THEIR FOOD AND DRINK, RAISED MORE THAN

$77,000 FOR OUR ANTI-HUMAN TRAFFICKING PARTNERS

KIWIS FIGHTING TRAFFICKING: A CYCLING EVENT AT CLEVEDON, AUCKLAND, WITH 19 TEAMS RAISING NEARLY

$96,000

PETRA BAGUST IN NEPAL“I heard stories of escape and stories of terrible bondage and horrific abuse, and stories of repair and healing, and stories of hope and scholarship. I talked to young women, old women, women who have avoided trafficking and those who have been trafficked.

“What we saw, as far as what Share and Care Nepal was doing, is this incredible transformation in the empowerment of women. In the communities where Share and Care was working, the women were flourishing; they were becoming partners with their husbands and they were becoming active members of their communities who had a voice.”

15

TV personality Petra Bagust visited our anti-trafficking partner Share and Care Nepal.

SAVE THE DATE

For more detai ls , contact us

tearfund.org.nz | 0800 800 777

TEAR Fund is a registered chari ty : Chari t ies Act 2005 registrat ion CC21725

PAUL OMONDI

03–14

JUN 2015

POVERTY CYCLE

29

AUG 2015

LIVE BELOW THE LINE

21–25

SEP 2015