2025 FINANCIAL REPORT
EDITORIAL
We are pleased to present Karuna-Shechen’s 2025 Financial Report.
This report is intended to provide a clear, accurate, and informative overview of how our resources are utilized across our network. It details the financial flows from the past year, their sources, and how they support our work with vulnerable populations in India, Nepal, and Tibet, as well as the launch of our initiatives in Bhutan.
In 2025, Karuna-Shechen confirmed the continued growth of its operations. Expenditures on our programs reached $3.4 million, up from $3.1 million the previous year (and $2.5 million in 2018). This growth reflects the expansion of our on-the-ground activities, the strengthening of our teams, and our commitment to ensuring the long-term sustainability of our interventions.
The year was also marked by exceptional fundraising, driven by the association’s 25th anniversary, Matthieu Ricard’s visit to Europe, and a significant donation received in Switzerland. This level of funding enables us to continue expanding our initiatives and to plan responsibly for the years ahead.
The financial report we are presenting to you is based on the consolidation of the accounts of several entities that are legally independent from Karuna-Shechen. This approach provides a comprehensive financial overview of our international activities without undermining the autonomy of each of the structures that make up the network.
We would like to extend our heartfelt thanks to all of our donors, sponsors, partners, volunteers, and team members. Your trust is the very foundation of our commitment.
With our deepest gratitude,
ELODIE JALICOUX INTERNATIONAL GENERAL SECRETARY
ACCOUNTING PRINCIPLES
RULES AND METHODS
1 - ACCOUNTING PRINCIPLES, VALUATION METHODS AND EXCEPTIONS
The purpose of the consolidated financial statements is to present the combined financial results of the KarunaShechen entities within a single reporting framework to provide a global overview of revenues and expenses.
The financial information presented in this report is derived from the accounting and financial data of the relevant entities, after conversion to U.S. dollars. For each local currency, the average annual exchange rate against the USD was used to ensure consistency in the presentation of the fiscal year.
1.1 - ACCOUNTING STANDARDS
The aggregated presentation is based on data prepared in accordance with the principles of going concern, accrual accounting, and prudence, using the accounting and financial information available for the entities included in the scope of the report.
Exceptions (see opposite) to the requirements of these standards have been applied in order to provide a fair presentation of the assets, financial position, and results of the aggregated perimeter.
Where applicable, risks and losses that arose during the current fiscal year or a prior fiscal year are taken into account, even if they became known between the fiscal year-end and the date the financial statements were prepared.
1.2 - EXCEPTIONS TO THE PROVISIONS OF ACCOUNTING STANDARDS
Since most expenditures related to humanitarian activities are sent or received in U.S. dollars (USD), these aggregated accounts are denominated in that currency. It is also the reference currency for international foundations or public entities that make grants.
The accounts of network entities denominated in another currency (primarily the euro) have been converted to USD according to the following rules:
■ non-monetary items, including shareholders’ equity, are converted at the historical rate, i.e., the average annual exchange rate.
■ monetary items are converted at the average annual exchange rate.
■ revenue and expenses are, in principle, converted at the average annual exchange rate.
1.3 - INCOME STATEMENT PRESENTATION
In order to present an income statement that reflects the use of our resources, expenses are presented by destination and not by type.
A distinction is thus made between expenditures allocated to social programs, broken down by geographic region (under the “Programs” heading), and general expenses (under the “Structure” heading).
Revenues are broken down by origin.
2 - SCOPE OF AGGREGATED FINANCIAL STATEMENTS
The lead organization that compiled this report is the French association, Karuna-Shechen.
Karuna-Shechen is composed of independent entities that share the goal of alleviating the suffering of disadvantaged populations and advocating for a more compassionate world. These entities work closely together to combine their efforts, coordinate their activities, and foster a spirit of solidarity.
The scope of the consolidated financial statements includes the following six entities:
■ Association Karuna-Shechen, a non-profit organization under the French Law of 1901, recognized as being of general interest in France, with its headquarters located at 199 Boulevard Voltaire, 75011 Paris, acting as the International Coordination Body (ICB);
■ Karuna-Shechen Endowment Fund, an endowment fund conducting activities of general interest in France, with its headquarters located at 199 Boulevard Voltaire, 75011 Paris;
■ Société Civile Compassion en Actions – Karuna, responsible for managing Matthieu Ricard’s copyrights, with its headquarters located at 199 Boulevard Voltaire, 75011 Paris. Matthieu Ricard has always donated all of his royalties to Karuna-Shechen;
■ Karuna-Shechen Switzerland, an association recognized as a public benefit organization in Switzerland, headquartered at 1224 Chêne-Bougeries, Geneva, Switzerland;
■ Karuna-Shechen USA, a 501(c)(3) organization registered in the State of New York, headquartered at Mowbray Drive, Kew Gardens, New York, 11415, USA;
■ Karuna-Shechen Asia Limited, a non-profit organization registered in Hong Kong, with its headquarters located at Suite 2801-03, China United Center, 28 Marble Road, North Point, Hong Kong.
The aggregated accounts also include projects implemented by our partners in the field, including:
■ SRPC Trust, a trust registered in India and authorized under the FCRA for humanitarian activities related in particular to the Shechen Clinic, with its headquarters located at P.O. Bodhgaya 824231, Gaya, Bihar, India
■ Shechen-Karuna Nepal, a local NGO registered in Nepal, headquartered at Ward No. 6, Bauddha Mahankal, Kathmandu, Nepal
As not all organizations close their accounts on the same date, slight variations may occur, notably as a result of accounting reclassifications or adjustments proposed by the auditors. These differences, which are always insignificant, affect neither the consistency of the method nor the dynamics of the financial statements. OPERATING EXPENSES 4,23
Note:
3 - GLOSSARY
■ Assets: An item of value that a company owns or has rights over.
■ Income statement: A financial statement that shows a company’s revenues and expenses over a specific period, usually a quarter or a year.
■ Liabilities: Something a company owes to others, such as debt or unpaid bills.
■ Dedicated funds: Funds set aside for a specific purpose or project.
■ Dedicated funds carried forward: Amounts of dedicated funds that have not yet been used for their intended purpose at the end of an accounting period, and which are deferred until they can be properly accounted for as expenditure.
■ Missions: Expenses directly and indirectly related to humanitarian and advocacy activities.
■ Structure expenses: Expenses related to administrative costs and fundraising costs incurred by the network’s fundraising and coordination entities.
4 - QUALIFICATION OF THIS FINANCIAL REPORT
The financial statements presented here are an aggregation of financial information from the network’s entities, compiled for the purposes of clarity and transparency. We thus present the aggregated figures for the KarunaShechen network from an international perspective, in order to accurately reflect the scope and reality of our work around the world. This approach also meets a strong expectation from our donors, who wish to better understand the network’s global impact.
For the entities in France and Switzerland the information in this financial report is based on the annual financial statements as of December 31, 2025. For the other entities and partners included in this analysis the accounting, financial, and management data is based on information that was available on the date this report was prepared. All entities within the Karuna-Shechen network are also subject to an external audit of their accounts, in accordance with the applicable rules and schedules.
GLOBAL ANALYSIS
Karuna-Shechen’s total expenditures in 2025 amounted to US$4.23 million, 81.2% of which was allocated to social missions. To support our missions, administrative expenses accounted for 18.8% of total expenditures.
Our programs continue to grow steadily, with $3.44 million allocated to social initiatives, compared to $3.16 million in 2024 and $2.5 million in 2018. This growth reflects the expansion of our operations, particularly in Nepal and India, as well as the launch of new initiatives in Bhutan.
The year 2025 was also marked by exceptional fundraising. Operating revenue reached $5.42 million, compared to $3.01 million in 2024. This increase was primarily driven by three factors: the association’s 25th anniversary, Matthieu Ricard’s visit to Europe, and a significant donation of $1.1 million received in Switzerland.
Consumable bequests are now included in this breakdown of resources, in line with changes to our financial reporting, which enhances the overall clarity of the economic model.
This exceptional level of resources results in a net income after taxes of $1.02 million (compared to a loss of -$0.45 million in 2024). This surplus primarily reflects a mismatch between an unusually high level of revenue collection in 2025 and the pace of program rollout, which, by nature, follows multi-year cycles: needs assessment, co-development with partners, contract negotiation, and then implementation.
This surplus will thus help finance future initiatives and absorb a projected deficit estimated at approximately $2.0 million for 2026–2027, in a context where a portion of resources remains inherently variable.
Finally, overhead costs, which amount to $0.79 million, continue to grow at a controlled pace, consistent with the expansion of operations, increased compliance requirements, and the gradual restructuring of the organization.
USES OF RESOURCES BY INTERVENTION THEMATIC -
For every $100 spent in 2025, $81 directly funded Karuna-Shechen’s social missions, $12.50 supported communications and fundraising, and $6.30 covered the administrative functions necessary for the organization’s management, compliance, and sound governance.
3,44 mUSD
OPERATING REVENUES 5,42 mUSD
USE OF RESOURCES BY AREA OF INTERVENTION
In 2025, India and Nepal remain Karuna-Shechen’s two main countries of operation.
The budget allocated to India amounts to $1.34 million. After several years of steady growth, particularly due to the establishment of a clinic in Jharkhand, the development of new activities in Darjeeling, and the opening of an office in Kolkata, this level now reflects a phase of stabilization. The programs there have reached a degree of maturity that allows us to consolidate the initiatives undertaken, improve their quality, and strengthen their long-term impact.
On the other hand, Nepal has seen a significant increase, with $1.25 million committed in 2025 compared to $0.91 million in 2024. This growth is due to the launch of new initiatives in the southern part of the country, particularly in the Kapilvastu region, which faces significant needs in health, education, and community development. Nepal now accounts for more than a third of the organization’s missions.
Karuna-Shechen’s activities in Tibet have declined in recent years. As in previous years, they are funded by the association’s long-standing donors.
This development reflects a differentiated intervention strategy that combines consolidation in established areas with targeted expansion into regions with high needs. It also demonstrates Karuna-Shechen’s ability to adapt its operational model by balancing controlled growth, local roots, and addressing the specific challenges of the communities it serves.
International support for programs, managed by the French entity, reached $0.33 million in 2025. It supports increased activity volumes, coordination among entities, financial monitoring, evaluation, and the strengthening of quality standards.
Expenditures on advocacy and the Resilience Program also rose sharply, reaching $0.33 million. The increase in this category is primarily due to the expansion of the Resilience Program, which continued to ramp up its activities in 2025.
USE OF RESOURCES BY INTERVENTION THEMATIC
In 2025, health and hygiene remain Karuna-Shechen’s primary area of focus, with $1.07 million, or 31.2% of our social initiatives. This budget specifically covers the operations of our clinics, community-based healthcare, preventive measures, and hygiene programs.
Education remains a major pillar of our work, with $0.50 million, a level stable compared to 2024.
Food security accounts for $0.42 million. After several years of strong growth, its relative share declined slightly in 2025, without undermining its strategic importance in our integrated approach to poverty reduction.
Local program support reaches $0.50 million, reflecting the strengthening of teams and implementation capacities on the ground.
Advocacy and the Resilience Program continue to grow with $0.33 million, or 9.7% of social missions, confirming their increasing prominence in our work.
POSTE
USES OF RESOURCES BY INTERVENTION THEMATIC
3,44 mUSD
SCOPE OF THE 2025 FINANCIAL REPORT
An aggregation of legally independant entities and field
Fundraising and coordination
Karuna-Shechen aggregated
Program Implementation
Overall economic assessment of the network KARUNA-SHECHEN
Aggregated 2025 vision
BREAKDOWN OF FUNDS BY ACTIVITY AND COUNTRY OF OPERATION
OVERVIEW OF KEY ACTIVITIES AND RESULTS FROM 2025
HEALTH AND HYGIENE
Saving lives and preserving health
OUR PROGRAMS
■ General medicine: treating and caring for the whole family
■ Specialized medicine: addressing physical and mental health suffering
■ Mobile clinics: bringing care to remote areas
■ Diagnostics: using technology to find the origin of pathologies
■ Women and children: raising awareness and addressing their specific needs
■ Sanitation: building toilets and bringing access to clean water
■ Veterinary care: treating and alleviating the suffering of animals
EDUCATION
Guaranteeing access to quality education for all
OUR PROGRAMS
■ Early childhood development: encouraging joy, cultivating values of cooperation and sharing
■ School support: building, renovating, and providing materials
■ Adult literacy: learning to read, count and other essential skills
■ Teacher training: reinforce teaching methods
KEY RESULTS IN 2025
■ 60,210 patients listened to and cared for
■ 20,830 people gained access to clean water
■ 7,429 women and girls educated about menstrual hygiene
■ 4,989 animals treated
KEY RESULTS IN 2025
■ 7,368 children and adolescents supported in their schooling
■ 5,726 young children attended kindergarten
■ 45 preschools equipped with games and supplies
■ 2 elementary schools equipped with accessible and safe drinking water stations
FOOD SECURITY
Fighting malnutrition with sustainable agriculture
OUR PROGRAMS
■ Organic vegetable gardens: providing quality food based on traditional and responsible agriculture
■ Agroecology: promote and provide training on the creation of sustainable food systems that integrate ecological, economic, and social dimensions
■ Drip irrigation: irrigating crops year-round while respecting resources
■ Water management: facilitating access to water through the creation of ponds and wells
ECONOMIC DEVELOPMENT
Training and supporting tomorrow’s entrepreneurs
OUR PROGRAMS
■ Micro-entrepreneurship: providing financial support for the creation of a business
■ Agriculture: training in responsible agronomy
■ Handicrafts: providing an income through creative arts and crafts
■ Computer science: providing access to technical and practical knowledge
ENVIRONMENT
Raise awareness and act with respect for nature and life
OUR PROGRAMS
■ Responsible practices: raising awareness and taking action
■ Tree planting: fighting global warming and preserving biodiversity
KEY RESULTS IN 2025
■ 234,497 people grew a vegetable garden
■ 16,360 fruit trees distributed and planted
■ 274 households equipped with rainwater harvesting systems
■ 16 ponds and 5 wells provided better access to water for communities
KEY RESULTS IN 2025
■ 1,515 farmers trained in agricultural entrepreneurship
■ 925 young people in computer classes
■ 374 financial grants for a microbusiness
■ 261 women trained in crafts
KEY RESULTS IN 2025
■ 9,267 trees planted
■ 12,078 people made aware of eco-responsible interventions
■ 7 eco-friendly vegetable gardens created in schools and tended by students
STRUCTURE EXPENSES
Structural costs reached $0.79 million in 2025, compared to $0.64 million in 2024. This increase reflects the gradual strengthening of the support functions necessary to secure and develop the organization, as well as the impact of EUR/USD exchange rate fluctuations, which alone account for approximately 20% of the increase observed between 2024 and 2025.
The remainder of the increase is driven by the professionalization of our teams, with targeted hiring in key roles related to international coordination, institutional funding management, and fundraising. These investments aim to ensure the continuity and quality of operations, strengthen compliance and governance requirements, and support the diversification of our resources.
The ratio of administrative expenses to total expenditures stands at 18.8% in 2025. It remains moderate given the expansion of operations and is expected to remain broadly stable in 2026.
RESOURCES
In 2025, Karuna-Shechen achieved exceptional results, with operating revenue of $5.4 million, compared to $3.0 million in 2024. This growth specifically reflects the momentum generated by the association’s 25th anniversary, Matthieu Ricard’s presence in Europe, and a significant donation of $1.1 million received in Switzerland.
Fundraising has seen strong growth. Donations from individuals reached $2.93 million (compared to $1.62 million in 2024), including a one-time donation received in Switzerland. Even excluding this contribution, donation revenue continues to rise, reflecting the impact of efforts made in recent years to retain and attract donors. Grants from associations and foundations also increased to $0.97 million, while corporate sponsorship totaled $0.68 million.
Consumable bequests, now included in this aggregate view, amount to $0.52 million and enhance the clarity of our resource structure. Also added this year are $0.12 million in resources generated by events organized in connection with the association’s 25th anniversary.
The 2025 resource structure thus highlights a diversified economic model that continues to rely overwhelmingly on the support of private donors, including individuals, foundations, and corporations. It also underscores that certain components of fundraising are, by nature, variable or one-time in nature, which calls for a multi-year perspective when assessing financial balances.
FUNDRAISING BY BRANCH
In 2025, Switzerland became the network’s top fundraising contributor, raising $1.96 million—38.3% of the fundraising resources listed on this page. This increase is primarily due to a significant donation received during the fiscal year.
France remains a central pillar of fundraising, with $1.65 million raised by the association, plus $0.52 million contributed by the endowment fund, primarily from consumable bequests and other related proceeds.
The United States contributed $0.51 million, while Hong Kong reached $0.27 million, a significant increase compared to 2024.
Funds received directly locally in India and Nepal remain limited in terms of the aggregate total but reflect a gradual diversification of funding streams.
FINANCIAL FLOWS OVER THE YEAR FROM FRANCE, SWITZERLAND, AND THE USA TO THE TOP THREE FIELD PARTNERS
This table presents the main financial flows for the fiscal year between the network’s fundraising entities and its key field partners. It illustrates the funding channels within Karuna-Shechen, though it does not replace a review of expenditures by country, which may vary depending on payment and implementation schedules.
ITEMS
Shechen Karuna (Nepal)
The Shechen Clinic, a unit of the SRPC Trust (India)
CONTRIBUTIONS TO INTERNATIONAL ACTIVITIES (ADMINISTRATION / FUNDRAISING / INTERNATIONAL FIELD SUPPORT)
This table shows the breakdown, by entity, of contributions to the network’s cross-cutting activities: administrative costs, fundraising, and international program support. It highlights France’s leading role in funding these shared functions, while also reflecting the contributions of the other branches to the structure and development of the network as a whole.
EXCHANGE RATES: AVERAGE ANNUAL RATE, 1 DOLLAR EQUALS
Since the aggregated data is presented in U.S. dollars, the accounts of entities denominated in other currencies have been converted using average annual exchange rates. The table below summarizes the rates used for the main countries and currencies involved.
FINANCIAL RESULTS AND EXTRAORDINARY ITEMS
In 2025, Karuna-Shechen’s aggregate financial result stood at -$0.15 million, compared to +$0.36 million in 2024, a year marked by particularly favorable market conditions.
This result partly reflects the structural reality of an organization operating in a multi-currency environment. KarunaShechen raises the bulk of its funds in hard currencies, primarily euros, U.S. dollars, and Swiss francs, while a significant portion of program expenditures is incurred in Indian and Nepalese rupees, with transfers primarily conducted in U.S. dollars prior to conversion. In this context, exchange rate fluctuations can affect—sometimes significantly—the effective purchasing power of the resources mobilized in the field.
Of the -$0.15 million recorded in 2025, -$0.07 million corresponds to a relatively structural component related to exchange rate fluctuations inherent in our international operations. The remainder reflects more varied effects across entities, with some having benefited from more favorable developments than others. It also includes unrealized foreign exchange losses, i.e., differences recognized in the financial statements at the balance sheet date on positions still held in foreign currencies. These effects do not necessarily imply an immediate cash outflow, but reflect the impact, to date, of exchange rate movements on the value of the relevant assets and liabilities. This situation illustrates the value of an aggregated view across the network: the diversity of foreign currency exposures helps to spread risks across entities, even though the accounting effects may vary from one business line to another and from one fiscal year to the next.
In its financial management, Karuna-Shechen treats this currency risk as a standard factor in the management of an international organization. The goal is to limit, over the long term, the risk that currency volatility might lead to unwanted program adjustments or funding constraints.
Furthermore, the royalties donated by Matthieu Ricard, which amount to $0.07 million this year, continue to be a valuable contribution to the funding of Karuna-Shechen’s work. True to his commitment, Matthieu Ricard donates the entirety of these royalties to the organization. However, these resources are by nature irregular and volatile, depending in particular on publishing trends, the pace of publications, and the availability of Matthieu Ricard, who is now more focused on Asia. This is why they are presented separately from recurring operational resources, for the sake of prudence and clarity.
FINANCIAL INDICATORS, RESERVES, AND MULTI-YEAR OUTLOOK
As outlined in our annual reports for previous fiscal years, Karuna-Shechen’s annual results may, depending on the year, show either a surplus or a deficit, both internationally and locally. This variability directly reflects the nature of our model, which is characterized by inherently volatile fundraising, as well as exposure to various risks that can affect both the pace of resource mobilization and the pace of their operational deployment.
In this context, Karuna-Shechen has established reserves to ensure the continuity of its commitments to communities and to structure its approach to dealing with uncertainties. These reserves fall into four complementary categories, each designed to address specific risk management and long-term planning objectives:
■ the Beneficiary Safeguard Reserve, aimed at ensuring the continuity of programs benefiting communities in the event of a major shock that permanently affects funding capacity;
■ the Foreign Exchange Risk Reserve, intended to absorb the adverse effects of exchange rate fluctuations between fundraising currencies and spending currencies;
■ the Strategic Transition Reserve, designed to support a potential transformation of the funding model, particularly in the context of a diminishing role or the withdrawal of the founder;
■ the Emergency Reserve, enabling the immediate mobilization of resources in the event of an unforeseen humanitarian crisis (natural disaster, etc.).
Furthermore, in accordance with its multi-year financial plan, Karuna-Shechen is implementing a phased drawdown of its resources, estimated at approximately $1 million per year through 2031. This approach reflects a deliberate choice to spread out expenditures over time, consistent with the long-term nature of its programmatic commitments.
The deliberate time lag between the mobilization of resources and their actual use serves several key objectives:
■ ensure that funds are allocated to well-designed, relevant, and high-impact programs;
■ avoid any approach to deployment that is driven by short-term considerations;
■ ensure a controlled scaling-up of operations that is consistent with local implementation capacities and our oversight procedures;
■ maintain the quality, consistency, and sustainability of our interventions.
This long-term approach thus makes it possible to balance financial discipline, operational rigor, and commitment to Karuna-Shechen’s long-term mission.
Making solidarity the norm, not the exception, means considering that every altruistic gesture contributes to building a fairer, more harmonious world, whether it’s sharing resources or reaching out to those in need.
MATTHIEU RICARD