2024 FINANCIAL REPORT
EDITORIAL
Dear friends,
We are pleased to present Karuna-Shechen’s 2024 Financial Report. This report demonstrates our commitment to providing a true and transparent representation of our resource management across our various entities.
Thanks to your support and the determination of our teams, we continue to bring concrete, lasting help to vulnerable populations in India, Nepal and Tibet. Our actions in the field, supported by rigorous financial management, have maximized the impact of every donation.
To create an accurate and transparent income statement, this financial report combines the accounts of the several organizations that comprise Karuna-Shechen. This document details our sources of funding, as well as the way in which we have used these resources to eradicate the causes of poverty and accompany populations towards resilience and autonomy.
We would like to express our deepest gratitude to our benefactors, partners, teams and volunteers for their presence. Your contributions are the cornerstone of our mission and make our programs possible.
As we celebrate our 25th anniversary, we remain determined to pursue our mission with the same passion and commitment. We are convinced that together we can continue to make a significant difference to the lives of the people we serve.
Thank you for your trust and support.
With all our gratitude,
Quentin DURAND CEO
ACCOUNTING PRINCIPLES, RULES AND METHODS
1 - ACCOUNTING PRINCIPLES, VALUATION METHODS AND EXCEPTIONS
This financial statement combines all the accounts of our sister organizations as if they were a single entity.
Data from the organizations’ statutory accounts are aggregated into a single financial statement after conversion into US dollars. For each local currency, the average annual conversion rate with the USD has been used.
The combined financial statements are the equivalent of consolidated financial statements prepared within a group of companies under common control.
ACCOUNTING STANDARDS
The combined financial statements have been prepared in accordance with the general accounting principles applicable in France, and in particular those defined by the following regulations:
■ ANC regulation no. 2014-03 and ANC regulation no. 2018-06 of December 5, 2018 on the annual financial statements of private not-for-profit entities.
■ ANC regulation no. 2020-01 of October 9, 2020 relating to consolidated financial statements.
Deviations from the requirements of these standards (see 1.2 below) have been applied in order to enhance the true and fair view of the Group’s assets and liabilities, financial position and results.
The statutory financial statements, on which the combined balance sheet and income statement are based, have been prepared in accordance with the principles of going concern, accrual accounting and prudence.
Account is taken, where appropriate, of risks and losses arising during the year or in prior years, even if they became known between the year-end date and the date of preparation of the financial statements.
The historical cost method is used to value items recorded in the accounts.
EXCEPTIONS TO THE PROVISIONS OF ACCOUNTING STANDARDS
As most of our humanitarian expenses are sent or received in US dollars (USD), these combined accounts are reported in this currency. This is also the reference currency for international foundations and public bodies that make grants.
The accounts of our organizations that use other currencies (mainly the euro) have been converted into USD according to the following rules:
■ non-monetary items, including shareholders’ equity, are translated at the historical rate, i.e. at the average annual conversion rate.
■ monetary items are converted at the average annual exchange rate.
■ income and expenses are, in principle, translated at the average annual exchange rate.
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 expenditure on social missions, broken down by geographical area (“Missions” headings), and general expenditure (“Headquarters” headings).
Income is broken down by origin.
2 - SCOPE OF COMBINED FINANCIAL STATEMENTS
The lead organization that compiled this report is the French association, Karuna-Shechen.
Karuna-Shechen is made up of a series of independent organizations that share the goal of alleviating the suffering of disadvantaged populations and advocating for a more altruistic world. These organizations work closely together to nurture our altruistic motivations, coordinate our efforts and foster a solidarity of purpose.
The scope of the combined financial statements includes the following 6 entities:
■ Karuna-Shechen, association loi 1901, declared of general interest (France)
■ Karuna-Shechen, endowment fund (France)
■ Compassion en Action - Karuna, civil society (France)
■ Karuna-Shechen USA, 501c3 registered in the State of New York (United States)
■ Karuna-Shechen Suisse, non-profit organization (Switzerland)
■ Karuna-Shechen Asia Limited, non-profit company (Hong-Kong)
The combined financial statements also include the combined financial statements of partners operating in the field.
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 accounts.
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: Spending on humanitarian and advocacy activities.
■ Headquarters expenses: Expenses related to administrative costs and fundraising costs.
GLOBAL ANALYSIS
Karuna-Shechen’s total expenditure in 2024 amounted to US$3.80M, 79% of which was devoted to our programs to reduce extreme poverty. Advocacy and the Resilience program account for 4% of our budget. To support our missions, operating costs amounted to 17% of expenditure.
In 2024, as last year, expenditure exceeded resources. This situation is due to the catch-up effect of the COVID years, which had seen the pace of expenditure slow down as a result of successive confinements and the administrative inability to operate the full range of our activities.
The missions accomplished have risen from $2.5M in 2018 to $3.16M in 2024 (+4% per year) thanks to efforts to (i) improve budget execution capacity by recruiting a MEAL department (monitoring, evaluation, accountability and learning), (ii) set quarterly quantitative targets and (iii) continue to support projects that our close to our heart and mission (“grants of compassion” projects) with other like minded NGOs.
Head office expenses stabilized at around $0.64M (+1 % p.a., which is below the inflation rate, averaging 2.5% over the period). For several consecutive years, we have endeavored to maintain the share of operating costs at around 17%, which is in line with the sector’s low average.
Missions remained stable, while donations fell by 9%. As a result, provisions on dedicated funds have not been made since 2022, which is still the case in 2024. This is good news in view of the cash surpluses we have built up in recent years. Past years’ cash surpluses have therefore been used up prudently over the last three years.
Finally, profit after tax is stabilized at -$0.60M (versus -$0.51M in 2023). The final result, meanwhile, is negative (-$0.45) due solely to a difference in the amount of bequests received, income that cannot be controlled, and not to increased expenditure at head office.
OPERATING EXPENSES 3.80 mUSD
OPERATING REVENUES 3.31 mUSD
USE OF RESOURCES BY AREA OF INTERVENTION
Since 2018, the budget devoted to India has risen from $0.8M in 2018 to $1.6M in 2024 (+12%/year). The new items of expenditure in 2024 are due to the strengthening of the team at the central office in Calcutta, opened the previous year, and to the deepening of our actions in the Darjeeling region, begun in 2023. As a result, India will account for 52% of our operations in 2024, compared with 33% in 2018.
As for Nepal, the budget allocated in 2024 is up 42%, the result of an ambitious reorganization initiated in 2023 to boost our capacities and the resulting intensification of our activities in the Kapilvastu region. Nepal accounts for 29% of our operations.
International support for programs in India and Nepal, managed from our headquarters in Paris, has increased by 17% between 2023 and 2024 to support our ambitions and adapt our intervention models.
Our advocacy mission and the Resilience Program saw their budgets increase by 100%. Indeed, the expansion of the latter activity in France was programmed and met with great success, with 19 cycles conducted with 15 partner structures. In 2025, Karuna-Shechen’s ambition is to further extend this offer to new partners. The Resilience Program has been fully funded by a dedicated sponsor since 2023.
The amount of these two budget lines will be stabilized by 2025, now that these two work circles are sized to our needs.
USE OF RESOURCES BY INTERVENTION THEMATIC
In 2024, as has been the case for many years, the bulk of our missions involved programs in the field of health and hygiene (30%), which require a large number of our teams and substantial resources, notably through the operation of our two clinics in India. This is followed by food security and education (16% each).
Since 2018, we have seen a steady increase in the budget allocated to food security, from $0.20M in 2018 to $0.51M in 2024, i.e. +17% per year, responding to a real need for support in the field, where needs are growing and climatic hazards are intensifying.
USES OF RESOURCES BY INTERVENTION THEMATIC 3.16 mUSD
HIGHLIGHTS OF 2024 MAIN ACTIVITIES AND RESULTS
HEALTH AND HYGIENE
Saving lives and preserving health
OUR PROGRAMS
■ General medicine: treating and caring for the whole family
■ Specialized medicine: responding to various pathologies
■ Natural medicine: complementing the benefits of conventional medicine
■ 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: raising awareness of hygiene and building toilets
■ Veterinary care: treating and remedying 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, rehabilitating and providing materials
■ Adult literacy: learning to read, count and other essential skills
■ Teacher training: reinforce teaching methods
FOOD SECURITY
Fighting malnutrition with sustainable agriculture
OUR PROGRAMS
■ Organic vegetable gardens: providing quality food based on traditional and responsible agriculture
■ Agroecology: training farmers in ecological, economic and social practices to create sustainable food systems
■ Drip irrigation: irrigating crops year-round while respecting resources
■ Water management: facilitating access to water through the creation of ponds and wells
KEY RESULTS IN 2024
■ 69,150 patients listened to and cared for
■ 7,870 animals treated
■ 9,774 women and girls educated about menstrual hygiene
■ 463 toilets built
KEY RESULTS IN 2024
■ 11,840 children and adolescents supported in their schooling
■ 7,975 young children attended kindergarten
■ 1,080 children practiced yoga
■ 629 adult women taught to read and write
KEY RESULTS IN 2024
■ 218,500 people grew a vegetable garden
■ 20,137 fruit trees distributed and planted
■ 783 households equipped with drip irrigation
■ 10 wells and 12 ponds provided better access to water
ECONOMIC DEVELOPMENT
Empowerment to be actors of change
OUR PROGRAMS
■ Micro-entrepreneurship: providing financial support for the creation of a business
■ Agriculture: training in responsible agronomy
■ Handicrafts: guaranteeing an income through the creative arts
■ Computer science: providing access to technical and practical knowledge
■ Sustainable technologies: training for tomorrow’s professions
ENVIRONMENT
Promoting practices respectful of nature and life
OUR PROGRAMS
■ Responsible practices: raising awareness and taking action
■ Tree planting: fighting global warming and preserving biodiversity
KEY RESULTS IN 2024
■ 712 young people in computer classes
■ 705 financial grants for a microbusiness
■ 289 women trained in crafts
■ 442 farmers trained in agricultural entrepreneurship
KEY RESULTS IN 2024
■ 12,890 trees planted
■ 9,700 people made aware of eco-responsible attitudes
HEADQUARTERS EXPENSES
Head office costs have stabilized at around $0,64M versus $0,61M in 2018 (+1% per year, which is not even the rate of inflation). The overheads / grand total ratio of 17% this year continues to be in the low average of the associative sector. Head office expenditure should remain stable in 2025.
RESOURCES
ITEMS
After an exceptional year in 2021 in terms of fundraising ($3.66M), driven by several events around our Honorary President and founder Matthieu Ricard, including a book release, we had a sharp decline in 2022 ($2.78M, or -24%).
This is due in particular to a decline in generosity after the COVID period, growing inflation in Europe and an unfavorable context for giving in France (shifting of generosity to international emergencies, war in Ukraine, etc.), as well as the difficulty of attracting new donors.
In 2023, we managed to consolidate our results and see a way out of this trend, raising $2.91M in donations. In 2024, we see a further decline to $2.67M, due to the cessation of support from one of our major benefactors. The rest of our fundraising (general public, philanthropists, corporate sponsors and foundations) remains stable overall. Nevertheless, we are seeing an erosion of our support base and a reduction in the number of smaller donations, although the volume remains stable.
The association is implementing a plan dedicated to acquiring new donors and retaining active ones, as well as developing regular donations as a source of long-term funding. Donor attrition has been brought under control at 37% in 2024, within the acceptable average for the sector (20~40%), after peaking at 60% in 2022.
Royalties and income related to Matthieu Ricard’s activities represent 1.4% of our resources and are also decreasing, due to the reduction in his activities (from $0.60M in 2018 to $0.05M in 2024).
FUNDRAISING BY BRANCH
The French branch of the association remains the main fundraising entity, with +57% of donations received, although the overall level of donations fell by -14%.
Switzerland contributed even more significantly in 2024, ahead of the United States for the second year running, buoyed by funding acquired from several foundations.
Fundraising in Hong Kong, after declining over the years by around 13% on average annually since 2018, observed an increase in 2024 (+42% compared with 2023).