Like most non-profit organisations, SVA has limited working capital reserves and utilises the majority of the money donated within the year it is received. As of 30 June 2011, the cash balance available for SVA’s operations was $1.5 million, which is sufficient to cover operating expenses for approximately three months.
In an effort to secure more sustainable funding, SVA has established the SVA Future Trust to accumulate a permanent capital base. Investment earnings generated will be available to SVA while the capital will remain invested in perpetuity. However, while the capital base is being built, earnings are being retained and reinvested within the SVA Future Trust. As of 30 June 2011, the SVA Future Trust was $3.0 million in size.
How we used our funds
Note the breakdown in the expenditure chart below includes direct costs only. The ventures and enterprises that SVA partner with access the support of SVA’s operational team in terms of functions such as fundraising, finance and marketing. These costs are not allocated to Venture support and Social Enterprise support and are contained within the SVA operations allocation. SVA’s own operational costs including fundraising; marketing and communications; finance; administration and other overheads are also allocated to this category.
Expenditure incurred by the School for Social Entrepreneurs Australia, which is currently auspiced by SVA are excluded from these figures. Expenditure reported in the audited financial statements however, does include this expenditure.
