Financial Accountability

Financial accountability is of the utmost importance to us. Our goal is to maintain a low-cost administration regime so as to maximise the funds allocated to project partners. All our projects and country offices are subject to internal and external audits, to ensure money is being used efficiently and with integrity. Copies of our financial statements are available on request.

Income tax

All contributions of $5 or more to TEAR Fund are tax deductible. Receipts should be retained for tax purposes. Receipts for payments will be made annually, in April of each year, to minimise administration and postage costs.

How is my money used?

TEAR Fund is an independent New Zealand organisation; we pay no unnecessary expenses to an overseas head office. We only work with indigenous churches and Christian partners operating in the field, further reducing costs.

Projects must benefit the poorest and must also deal with underlying causes, not just symptoms. There has to be a true partnership with the local community, giving women the opportunity to fully participate in design and implementation. Ongoing training is provided, which further benefits the community. All projects must be well managed, sustainable, and ecologically sound. There is total accountability for money entrusted.

TEAR Fund's Overheads

On average, 75% of money contributed to TEAR Fund is used in the field. The money used in New Zealand finances project selection and evaluation, education, administration and overheads.

When considering overheads, the important question is this: What impact does my donation make? If money is sent overseas to a partner with poor systems - weak project planning and high administrative costs - no matter how low the overhead in New Zealand, impact and real poverty reduction will be minimal. The supporter may feel low overheads show effectiveness - when the contrary may be true. On the other hand, take Microenterprise - the initial overhead may be higher, however the establishment of revolving credit has an ongoing economic value - funds are loaned and re-loaned. Which is the better criterion for judging effective use of your gift? Overheads or impact?

Importantly, some expenses here in New Zealand have a direct bearing on project success overseas – for example the administration of New Zealand government grants. Another factor making overhead comparisons difficult is New Zealand has no one accounting standard for overseas aid and development agencies.

Audited accounts can vary remarkably in what is designated as an overseas grant or an overhead. Our overhead ratio means that we are appropriately but not extravagantly resourced to grow and expand in New Zealand, ensuring excellence in project support. This also guarantees experienced management while developing quality partnerships with high field impact Impact or overheads? The balance between them is what is important.

Overheads examined

The most frequently asked question of aid agencies is this: How much money goes overseas?

However, this is not the right question to ask. The important question is this: "What impact does my donation make?"

Lets break this down further. If money is sent overseas to a partner with poor systems, weak project planning and high administrative gearing, no matter how low the overhead in New Zealand, impact and real poverty reduction will be minimal.

The supporter may feel low overheads show effectiveness when the contrary may be true. On the other hand, the Microenterprise initial overhead may be higher, however the establishment of revolving credit has an ongoing economic value - funds are loaned and re-loaned. Which is the better criterion for judging effective use of your gift? Overheads or impact?

Importantly, some expenses here in New Zealand have a direct bearing on project success overseas for example the administration of New Zealand government grants VASS and disaster relief. Another factor making overhead comparisons difficult is New Zealand has no one accounting standard for overseas aid and development agencies. Audited accounts can vary remarkably in what is designated as an overseas grant or an overhead.

Our overhead ratio means that we are appropriately but not extravagantly resourced to grow and expand in New Zealand, ensuring excellence in project support. This also guarantees experienced management while developing quality partnerships with high field impact

Impact or overheads? The balance between them is what is important.