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Annual Report 2014 of the FunDza Literacy Trust, a nonprofit dedicated to improving the literacy levels of SA youth by promoting a culture of reading and writing.
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CONTENTS Chairperson’s Report ..................................................................................................................................................................... 3 Managing Trustee’s Report ......................................................................................................................................................... 4 Our People .......................................................................................................................................................................................... 8 What we do ...................................................................................................................................................................................... 10 Building for Sustainable Impact ........................................................................................................................................ 10 Sustaining external relationships ................................................................................................................................ 11 Measuring our impact ....................................................................................................................................................... 11 Sharing the FunDza story ................................................................................................................................................ 12 Strengthening internal operations .............................................................................................................................. 13
Popularising Reading ............................................................................................................................................................. 14 Growing Communities of Readers .................................................................................................................................... 17 Content is king! .................................................................................................................................................................... 17 Innovative technology heightens appeal .................................................................................................................. 20
Developing Young Writers ................................................................................................................................................... 22 The ‘Fanz’ publishing platform ..................................................................................................................................... 22 Write4Life workshops ...................................................................................................................................................... 23
Financial Statements ................................................................................................................................................................... 26 FunDza Supporters ...................................................................................................................................................................... 34 FunDza Beneficiary Groups ...................................................................................................................................................... 35
The FunDza Literacy Trust IT 814/2011 | 095-‐260-‐NPO | PBO 930039651 85 Main Road, Muizenberg, 7945 Tel: 021 709 0688 | Fax: 086 619 7713 [email protected] | www.fundza.co.za Trustees: Dlamini, B; Hardie, CM (managing trustee); Mgabadeli, S (chair), Thagane (née Rangaka), L; Weeks, WAR
CHAIRPERSON’S REPORT It has been another truly successful year for the FunDza Literacy Trust. The organisation has most certainly grown its reach and impact and expanded its communities of readers. Without a doubt FunDza staff have been working hard. In the past financial year, FunDza distributed more than 12,000 books to beneficiary groups across the country – from deep rural schools in KwaZulu-‐Natal to youth groups in Soweto to outreach programmes for farmworkers in the Western Cape. As chairperson of FunDza, hearing this positive feedback on the books is hugely encouraging. FunDza’s ‘library on a mobile phone’ programme has proved hugely successful too. We’re delighted the independent monitoring and evaluation team’s reports indicate that access to FunDza content is helping young people to read more frequently and in greater quantities than previously. This is exactly what we are trying to achieve. Growing new writing talent is a key aim of FunDza. So being able to run the very special project – Mentoring our Future Writers – with funding provided by the National Arts Council has been a great achievement. This project saw five young and aspirant Western Cape-‐based writers working with professional writers to get their stories published on FunDza’s mobi network. The stories have been compiled into an exciting anthology called It Takes Two! We look forward to replicating this project in Gauteng and KwaZulu-‐Natal over the next two years. FunDza’s reputation has grown and its work is increasingly being recognised. This is exemplified by the many conferences, events and engagements where FunDza staff are invited to share their knowledge and experience. The interest in FunDza’s work is increasingly international – it has been invited to participate in conferences and seminars, not just in South Africa, but also in Kenya, Namibia and the USA in the past year. FunDza could not do its work without support. Thank you to those new funders as well as those existing supporters who have joined FunDza in prioritising improving the literacy levels for teen and young adult South Africans, specifically those from low-‐income backgrounds without easy access to books. We are proud that the organisation was able to raise more than R3,5-‐million in funding in the last financial year. This will help us go far in helping to support and sustain our outreach work and operations. Financial management is key for FunDza as we strive to ensure our sustainability. As a board and organisation, we are pleased to have received a clean unqualified audit again – for the third year running. What is heartening for me is the dedication and commitment shown by our staff and interns. They have selflessly spent time with young readers and writers popularising reading. This is something that we at FunDza believe will help us achieve our dream of spreading the love of reading for a brighter future for our young people. Siki Mgabadeli
MANAGING TRUSTEE’S REPORT It is hard to believe that FunDza was only founded three years ago. The organisation has expanded and developed quickly and we have certainly come a long way since those early months when we struggled to find support, and during which we set up our various programmes on a shoe-‐string budget. We feel hugely fortunate that we have now gained the support of committed partners who share our vision of a country enriched with young people and leaders in their communities who have been empowered by literacy and who are spreading a love of reading and writing. Literacy is a fundamental human right. Many statistics point to the fact that as a country becomes more literate, so too there are advances in health, increases in wealth and in entrepreneurship. According to the 2012 General Household Survey by Statistics South Africa, the adult literacy rate is 92.9%. However this rate was determined by merely asking people whether they could write and read short, simple sentences. Our education system points to a far more worrying problem – that of a severe lack of functional literacy, which is negatively impacting on academic progress and the acquisition of skills for professional advancement.
As evidenced by the 2013 Annual National Assessments, we need to do so much more to help young people master those language skills that are vital for future success. A mere 37% of Grade 9s scored more than 50% for Home Language (with the average mark being just 43.1%). Only 17% scored more than 50% for First Additional Language, with the average here being just 33.2%. It should be noted that the vast majority of South African learners take English as their First Additional Language – and that this is also the language in which they are examined for all other subjects. Improving the reading ability of young people, particularly in English, is essential for academic success at high school, matric level and beyond.
And, a study of 2013 matric exam papers across all subject areas by senior markers found that many pupils can barely read and write in English. This Third National Diagnostic Report found in particular that pupils battled to answer questions that required longer, more complex answers; they struggled to argue and substantiate; and they didn’t understand basic terms that are used in many questions.
Getting young South Africans to read more frequently and in greater amounts will help expand vocabularly, develop fluency and increase reading confidence. These are vital skills for young people to learn and to master in order for them to reach their potential.
From the feedback we receive from participants and partners across all our programmes, we can see that FunDza is doing just that – sparking and sustaining a ‘reading revolution’.
The 2014 financial year has been marked with many achievements. Here are a couple of our ‘reasons to celebrate’!
• The Africa Report named FunDza as one of ‘Thirty ideas shaking up Africa’.
• FunDza’s mobi network was selected as an official project of World Design Capital: Cape Town 2014.
• FunDza was included on the Nominet Trust’s inaugural NT100 list, as one of the world’s most inspiring examples of social tech innovation.
• FunDza was named one of four finalists in the Global Associaton of MBAs (AMBA) 2013 Entrepreneurial Venture Award.
• FunDza was selected as a semi-‐finalist for the US Library of Congress Literacy Awards, and it was included in their Best Practices 2013 publication as a project that exemplifies ‘innovative and effective work in the field of literacy and reading promotion’.
While the external recognition is fantastic, what we really love is the daily interaction with our beneficiaries – either through comments on our mobi network, emails from our reading partners, or communications with our young writers – that assure us that FunDza is making a difference in their lives.
Huge accolades must be given to all FunDza’s staff members who work tirelessly and with great passion to make FunDza a successful and innovative organisation. As managing trustee of this organisation, I feel so proud to be a part of this dedicated team and to have as colleagues a group of such highly skilled and inspirational people.
FunDza has now weathered its first three years of operations – often the most risky time for a start-‐up enterprise of any kind. We are planning for many more years at the moment. In the near future – the 2015 financial year – we are running a special ‘Rights’ project that brings our Constitution and Bill of Rights to life through a series of special stories. We’re planning major upgrades to our technology systems. This includes the launch of a FunDza app as well as a FunDza reading curriculum and online courses. We’re looking at how we can scale our impact and significantly grow our readership. And, we’re considering various social franchising models – specifically for our writing workshops.
Thank you to our funders, supporters, partners and beneficiaries that have joined us on this exciting journey. We look forward to meeting the challenges that lie ahead and to contributing towards the growth of educated, empowered and engaged young citizens and future leaders of South Africa.
Mignon Hardie
OUR PEOPLE The FunDza team brings together highly-‐skilled individuals with experience in business, marketing, publishing, writing and teaching. But, most importantly, all are passionate readers who share a deep love for this country, a desire to contribute towards its development and a belief in the transformative power of literacy, literature and story-‐telling. Siki Mgabadeli (Trustee: Chair) Siki is a business journalist and independent producer. She hosts PowerFM’s Powertalk, SABC2’s Big Debate on 2 and works for Summit TV. Siki won the Telkom ICT Journalist of the Year and Sanlam Financial Journalist of the Year (TV Category) awards in 2006. She has a Bachelor of Journalism (Hons) and is currently working towards her Masters through Wits University. Mignon Hardie (Managing Trustee) Mignon has a passion for small business development and has previously managed a number of start-‐up enterprises. She has a BA from UCT and an MBA from Stellenbosch University, for which she was awarded an Old Mutual Gold Medal. She was shortlisted for the prestigious 2011 AMBA International MBA Student of the Year award. Lebogang Thagane (née Rangaka) (Trustee) Lebo has worked for various companies as a human resources practitioner specialising in organisational development. She has also worked in the wine industry. She is currently Human Resources Manager at Nampak. Lebo has a BA (Industrial Psychology and Sociology) from NMMU and an MBA from Stellenbosch University. Andrew Weeks (Trustee) Andrew is an experienced commercial attorney, focusing on plain language law, consumer protection and information privacy law in an electronic environment. He is an associate at Michalsons Attorneys and also runs his own legal advisory business, Tenet Legal. He has a BA from Stellenbosch University, an LLB from Wits University and an LLM (ICT law) from UCT. Baleseng Dlamini (Trustee) Baleseng Dlamini is currently working for DSTV. She was previously National Business Manager Mass Markets for Ads24, commercial arm of Media24. She has spent most of her career in the media, having worked for top companies like SABC and M-‐Net in either advertising, sales, marketing or strategic business development.
Nicci Giles (Stakeholder relations and marketing) Nicci is an experienced manager and marketing strategist. Her strong marketing skills and social media savvy keep FunDza in the public eye. Nicci is also responsible for building relationships with our many stakeholders. Previously she was head of Marketing for the Johannesburg region of Investec Private Bank. She has a BSocSc and a Post Graduate Diploma in Organisation and Management, UCT. Dorothy Dyer (Literacy specialist) As a former English teacher, Dorothy’s passion for getting her students to read became the catalyst for FunDza’s literacy programmes. Dorothy runs the Popularising Reading programme. She is also the author of many academic textbooks and teen fiction. She holds a Masters in Applied Language and Literacy Studies and a Masters in Creative Writing, both through UCT. Phoebe Sibomana (Administrator and beneficiary liaison) Phoebe joined FunDza as an intern while studying towards her Honours degree in Social Development at the University of the Western Cape. She was so fantastic that FunDza offered her a permanent position. Apart from keeping the office in order, Phoebe is the liaison officer for the beneficiary groups in the Popularising Reading programme. Rosamund Haden (Content developer) Ros is a writer and editor. She ensures that FunDza always has top quality content. Besides her celebrated novel, The Tin Church, Ros has written numerous short stories, children’s fiction and textbooks as well as writing for the TV series Generations. She holds a Masters in Creative Writing from UCT and a Diploma in Advanced Studies in Publishing from Oxford Brookes University. Zimkhitha Mlanzeli (Young writer mentor) Zimkhitha first made contact with FunDza as a FunDza Fanz reader and writer. Her writing was so great that FunDza invited her to write professionally – and ended up offering her a job: to mentor other aspirant young writers. Zimkhitha works with our ‘FunDza Fanz’, encouraging, editing and developing their talents and then publishing their stories in our Fanz section on the mobi site.
WHAT WE DO FunDza runs three outreach programmes: Popularising Reading, Growing Communities of Readers and Developing Young Writers. It follows a systems-‐thinking approach to its outreach work. All FunDza’s programmes work together to achieve the following:
Create demand for reading by providing high-‐interest, exciting content that ignites an interest in reading; Overcome barriers to access to reading content by providing books or reading material at low or no cost; Leverage mobile technology to reach young people in the ‘place’ they spend their time – on their cellphones; Encourage readers to write so that they can find their own unique voice and gain confidence in their communication skills; Spur viral growth and get our readers to share the love of reading with their friends, family and community.
Popularising Reading is growing a network of beneficiary groups across the country that receive sets of specially selected books from FunDza to encourage reading. Growing Communities of Readers disseminates exciting teen/YA locally-‐developed reading content to readers via mobile devices. Developing Young Writers helps readers to find their voice and grow their writing skills. FunDza’s fourth programme – Building for Sustainable Impact – holds these all together by providing the support that the outreach work needs in order to make an impact.
B u i l d i n g f o r S u s t a i n ab l e Im p ac t The Building for Sustainable Impact programme is the engine that drives FunDza and all of its outreach work. We believe that it is imperative for us to be thinking about the long-‐term, and for us to be actively seeking ways to ensure that we can operate effectively in the future and thereby fulfil our mission: to grow a culture of reading and writing among South African youth. Building for Sustainable Impact is concerned with these key themes:
! Harnessing the power of passionate people, who have the energy and desire to drive our
programmes forward; ! Developing and deepening relationships with those who share our vision for an educated,
empowered and engaged youth;
! Securing funding and using donor resources effectively and efficiently to further our reach and scale our work;
! Supporting our organisation with systems that work and that can effectively manage our processes and monitor our progress;
! Ensuring consistent and trusted oversight through a committed board of trustees; ! Embracing a future-‐oriented focus, that encourages innovative thinking and supports
creative problem-‐solving; ! Remaining true to our mission – to grow a culture of reading and writing among South
Africa’s youth. The 2013/14 year also marked an important milestone for us: We have reached our third year of operations. In the business world, surviving for three years is a sign that a business is doing a lot of things right. We believe that the same applies in the challenging nonprofit / social entrepreneurship space. We believe that we are developing a strong track record. The Building for Sustainable Impact programme is an integral part of our success.
Sustaining external relationships Without a doubt our funding partners are key to our success. A big thank you to the DG Murray Trust, The Learning Trust, the Claude Leon Foundation, the Nussbaum Foundation and the Indigo Trust, Siber Ink, Hetzner and Ben Rabinowitz for their continued and hugely valued support. FunDza has worked hard to develop relationships with a variety of new funding partners. These include the UNHCR, Mutual and Federal Community Trust, the 476 Charitable Trust, the David and Elaine Potter Foundation, the National Arts Council, the Harry Crossley Foundation, HCI Foundation, Anglo American Chairman’s Fund, The Funding Network and the Second Stella and Paul Lowenstein Charitable Educational Trust. Some of the funding was for specific projects and others went towards FunDza’s general programme work. All of it was immensely appreciated as it meant we could deliver effectively our services as well as respond to and create new opportunities. Please see page 34 for a list of our funding partners. We have highlighted some of our special projects – run with dedicated funding from sponsors – in this report. FunDza is fortunate to have great relationships with a range of other stakeholders that support it in achieving its mission. Of particular importance are Nal’ibali and its campaign to get South Africa reading; Inyathelo for its help with bolstering our operations; Mxit and in particular, Mxit Reach, for their help in building a strong readership base.
Measuring our impact Thanks to dedicated funding provided by the DG Murray Trust, FunDza was able to conduct an evaluation of its ‘Growing Communities of Readers’ programme. This was conducted by UCT’s Monitoring and Evaluation Unit and is available on request from FunDza. One of the important findings was that the more participants read, according to their statistically recorded reading behaviour on the FunDza platform, the more likely they were to:
• indicate that they enjoyed reading outside of school; • think that they are good readers; • indicate that they read for longer periods; • record that they are now reading more outside of school.
In this coming year, FunDza is working with two UCT Masters students to gain greater understanding of its readers’ needs and profiles. The one investigates gender preferences in terms of reading material; and, the other tries to uncover what motivates FunDza readers to read more.
Sharing the FunDza story Building FunDza’s brand increases its visibility and helps widen its support base and grow its reach. The FunDza Team was featured on the SABC 2 TV show Mother of All Professions – a half-‐hour documentary that showcased FunDza’s work. A short video, entitled Read:Learn:Share, was produced for the mEducation Alliance and published on Youtube. Radio interviews on PowerFM, SAfm and Biz Radio featured Phoebe Sibomana, Ros Haden, Dorothy Dyer and Nicci Giles. A number of newspapers published articles on FunDza. These include local papers: Mail & Guardian; The Witness; The Varsity (UCT’s student newspaper); The Sowetan; My-‐Line Commuter Magazine as well as international newspapers; The Financial Times, The Independent (UK) and two articles in The Guardian. Various Blogs also published articles on FunDza: the Nominet Trust 100; The Media Online; The Scenic South; LeadSA; Ground Up; Vodacom’s Digital Classroom; The Non-‐profit Network; Medium and Women24. In addition, FunDza was invited to participate in a variety of conferences, events and workshops during the course of the year. Mignon presented at two international conferences: The Power of Mobile Technology to overcome barriers to Reading and Showcase Creative Writing at the e-‐Learning Africa conference in Windhoek and Leveraging Mobile Technology to Grow Communities of Readers at the 8th Pan-‐African Reading for All Conference in Nairobi. Locally Mignon presented Exploring words and worlds in FunDza’s mobi library at the ISASA Conference and Social Entrepreneurship – The (he)ART and SCIENCE of doing good at the University of Stellenbosch Business School’s December Coffee Shopchat. Dorothy Dyer presented Online multilingual reading and writing programme for reading and writing for young South Africans using cellphones at Wordfest in Grahamstown; The importance of reading for pleasure at the ISASA Maths and English Intern Orientation Programme; and, she presented The FunDza Story at the EMASA conference in Bloemfontein, the LIASA pre-‐conference workshop in Cape Town, and the RASA (Reading Association of South Africa) conference in Durban Nicci Giles participated in a panel ‘Platforms for engaging the Youth’ at the CSI Matters conference. Mignon Hardie and Craig Mason-‐Jones presented FunDza’s future technology plans at the mEducation Alliance Symposium, organised by USAID in Washington DC. Nicci Giles pitched FunDza to a group of investors at the The Funding Network‘s Cape Town event for individual philanthropists and Mignon pitched FunDza to the judging panel of the AMBA (Association of MBAs) Entrepreneurial Venue Award in London.
FunDza’s credibility is further entrenched through its regular social media updates on Facebook and Twitter that are enjoyed alike by funders, partner organisations and readers. FunDza’s Facebook ‘likes’ grew to 2167 and on Twitter it increased its following to 2392.
Strengthening internal operations FunDza worked hard to formalise various programme policies, streamline systems and ensure higher efficiencies in operations. We are continuously looking at ways in which we can improve our internal operations so that we can deliver more, better and faster. Sadly, we outgrew our little home at 89 Main Road, Muizenberg. But, thankfully, a new space opened up and it wasn’t too far away. On 1 December, we carried our desks and equipment to the double-‐storey white house right next door! We’re delighted with our newfound space and feel which is a secure space from which we can grow even further. So, if you’re in the area, pay us a visit or give us a call. We can make great cups of tea and coffee and would love to hear from you… Visit us at 85 Main Road, Muizenberg (directly opposite the BP garage).
Popu l a r i s i n g R e ad i n g In an article in the South African Journal of Education (Vol. 32 No.2), Sharita Bharuthram states: “Reading is one of the most important academic tasks encountered by students. In fact, reading is the essence of all formal education.” This is why FunDza’s mission to shift young people’s attitude to reading, and to spark and sustain a reading revolution, is so vital. In the 2013/14 financial year, FunDza’s Popularising Reading programme supported, in total, 185 beneficiary groups. These included: schools, libraries, youth development groups, and reading groups around South Africa. The programme delivers reading material that is of high-‐quality and high-‐interest to teens and young adults. The books not only create a love for reading among teens and young adults, but also help teachers and facilitators educate South African teens on current issues that they face. FunDza provides a platform to under-‐resourced organizations and schools nationwide to apply to become part of the Popularising Reading programme, by filling in the application forms either on the website, or by contacting us and requesting the forms. It is important that organisations do not just see the books as a donation, but that they see FunDza as a partner working with them to get young people reading. There were instances where beneficiaries were not giving feedback and communication was difficult. As a result, FunDza reviewed the application process, and now the facilitator is required to sign an agreement form undertaking to look after the books, read our newsletters, give feedback, and give the name of a new contact if they leave the organisation. Once the forms have been filled in and approved, and the agreement signed, FunDza provides the beneficiary with sets of accessible and exciting books for teen and young adult readers – twice a year on average. It also provides support material on how to use the books in a learning environment, as well as other ideas for promoting reading, via a monthly newsletter. There are cases where the school or library would like to have access to more books than the programme can supply, or cases whereby the books go missing and beneficiaries then contact us requesting more books. In such instances FunDza provides them with discounted rates to buy replacement or extra books from Cover2Cover, the publisher of the books.
In the 2013/14 year, FunDza gained 64 new beneficiaries and managed to deliver 12,671 books and activity guides to beneficiaries across South Africa. Almost 7,000 of these were FunDza’s Big Ups! books which contain highly popular short stories originally published on our mobi network. These, together with all the books in the Harmony High series, continue to hold high appeal. From July 2013, distribution of the books was outsourced to a logistics company, On the Dot. While there are a few disadvantages to this system (for instance, FunDza cannot send letters or certificates with the books), the benefits far outweigh these. FunDza is no longer dependent on the irregular offering of the SA Post Office. And, the bulk arrangement means that books are delivered via courier direct to the organisation, more securely and at lower cost. In addition, FunDza staff no longer have to spend long hours packaging and sending books countrywide. The response to the books has again been overwhelmingly positive. Fawzia Hoeri, from Uplands Outreach Programme wrote, “I can’t even begin to describe the immensely positive feedback our students give us! You have really changed their approach to reading.” Amanda Sickle, from The Reading Room in Cape Town, sent us this feedback: “It is easier to help a child to read when it is something that they enjoy reading, even if they only think they will enjoy reading the story. It’s easiest when the reader can relate to the story… it just brings the feeling of it being real and not a fairy tale. Personally, it feels like FunDza’s got my back by enabling me to assist young readers who are hungry for knowledge.” Beneficiaries also send us direct feedback from the readers themselves: as one student from Cape Town wrote about one of the short story anthologies, “I really enjoyed reading this book as i found it to be very interesting. Most of the stories i could relate to especially the first one. As a young teenager many people, adults in particular does not know or really understand how teenagers work and they don’t really "get" us. I found this book to really understand me and it gave me solution in which i could solve the problem that I’m dealing with. Besides that this book was funny, enjoyable and really fun to read.”
FunDza has a range of relationships and contacts with librarians, facilitators and teachers around the country. Inevitably there are beneficiaries who are more responsive than others, and FunDza develops a deeper and more supportive relationship with institutions who want to work more closely with us. These relationships can also feed in to the programmes as we get a clear picture of responses to our materials on the ground. While we are keen to support as many organisations as possible, we have had to make a number of organisations ‘inactive’ in the last year. We removed 49 beneficiary groups from our ‘active’ list, due to lack of feedback from the organisation about the books’ impact on the group that they were reaching. Most often, the inactivity was due to the FunDza ‘champion’ leaving the school or group, and no other person being available to take on that role.
G et t i ng T ha nd okh u l u HS r e a d i n g ! FunDza wanted to pilot a project of ‘book clubs’ in under-‐resourced schools where books were scarce. Thandokhulu High School in Cape Town was identified as the location for a pilot ‘book club’ system in two Grade 8 classes. The classes each got sets of FunDza – and other -‐ high interest -‐ books that they read during a formal reading session in class, and then learners could also take the books home. Two control classes were also monitored, in order to see if the books had an impact on learners’ attitudes to reading (a critical factor in promoting literacy) and also to compare comprehension scores at the beginning and end of the year. However, the control group classes quickly became aware of the books, felt that they also wanted to be part of the programme, and started borrowing them from friends in the pilot classes – thus increasing the value of books in the eyes of all Grade 8s! Thus most Grade 8s started seeing reading as potentially exciting, and our comparison was no longer viable! Later that year Thandokhulu High School received support from Equal Education to set up their library, which would also make our book club programme redundant, as books would be available at the library and there would not be such an urgent need for a different model of disseminating reading material. FunDza elected to spend a donation from Zonke Monitoring Systems on further supporting the development of the library. The funding was used to source books and furniture for the library, and to help make the space a sanctuary for reading. FunDza selected more than 200 high-‐interest books that would get both young people and teachers loving reading. FunDza also worked with Equal Education to set up the library, and ran an introductory workshop with teachers on the importance of reading. Interestingly, before the workshop few language teachers were aware of the powerful impact reading for pleasure has on learners’ academic abilities and results. This points to the need for future advocacy programmes for all teachers.
G row i ng C om m un i t i e s o f R e ade r s
FunDza’s Growing Communities of Readers programme marries great South African reading content with a desirable delivery channel: the mobile phone. We believe that one of FunDza’s great selling points is its ability to produce – every single week of the year – a new short story written by a Southern African author. In addition, another great selling point is its easy-‐to-‐navigate mobi network that boasts a library (books, short stories, poetry, feature articles and more), a bookshop (with third-‐party premium content), and ‘Fanz’ section – in which readers contribute content as part of FunDza’s ‘Developing Young Writers’ programme.
Content is king! Content development, under the leadership of Rosamund Haden, is a critical aspect of FunDza’s work. There needs to be a new short story ready for FunDza’s ‘hungry’ readers every week. This has to be commissioned, content edited, redrafted, copy-‐edited and proofread, sometimes translated, uploaded, and finally published online. There are many stages to the development process, and many stories in various stages of development at any one point in time. Translations of stories mean that they have to be ready a week ahead of the normal schedule. So, timing is crucial. During the financial year, FunDza commissioned and published an incredible 71 short stories (26 of these were translations) across a range of genres: human drama to crime, romance, mystery and true-‐life stories. All stories are targeted at a black, teen/young adult readership and are accessed by readers on FunDza’s responsive site (fundza.mobi) through their cellphones, tablets or computers or through FunDza’s Mxit app (mxitapp.com/fundza). The vast majority – more than 90% read FunDza content via Mxit as this works on a wide range of feature phones and requires very little data. Getting the story ‘right’ for FunDza’s readership is critical. As readers can provide instant feedback through the comment system, FunDza is fast learning what readers like (or don’t like). We’ve learnt that readers love plot-‐driven stories, with lots of dialogue. And, they enjoy stories that reflect their issues and that have youthful protagonists. Language needs to be accessible too. They also need believable characters, and satisfying endings. All of this makes for a ‘fun’ reading experience.
Many of the stories tackle important issues – from teen pregnancy to abuse, crime, depression, peer-‐pressue and all forms of bullying. But first and foremost, they need to be good stories in which the issues emerge out of the fabric of the plot. There are also many light-‐hearted, humorous stories of romance or thrilling mysteries, that keep our readers coming back for more. When we first started developing content, we thought that individual chapters should be short – we didn’t believe that readers would want to read too much text on their phones. We’ve discovered that this isn’t necessarily the case – readers now ‘demand’ that chapters are between 800 to 1,000 words – if they are shorter than that we invariably receive complaints. FunDza’s stories are released in serialised format – so each day there’s a new chapter. Chapters end with discussion questions to encourage reflection, and spark discussion and debate. Many of our readers comment every day. During the course of the financial year, FunDza’s mobi network received 35,720 comments from 11,963 different readers. This translates into an average of almost 100 comments on a daily basis, indicating high interaction and engagement. Where funding allows, FunDza also translates its stories into other South African languages. During the course of the year FunDza translated 26 of its short stories into the following SA languages: isiZulu, isiXhosa, Afrikaans Sesotho and Sepedi. FunDza can
track the popularity – and thus the demand – for stories in other languages. Without a doubt isiZulu, Afrikaans and isiXhosa hold the most appeal for our readership. Nonetheless, we are keen to translate into as many South African languages as is practically possible. FunDza’s pool of writers is growing too. During the year 29 writers were commissioned to write stories. Some of these were first-‐time writers who had been mentored into writing professional stories. A number of the mentee writers formed part of the ‘Mentoring our future writers’ project – with funding from the National Arts Council (see the section: Mentoring new talent) – while others were mentored by FunDza staff members. The new writers are: Asavelo Peko, Jean-‐Paul Willemse, Mzimkhulu Mackenzie, Nosibusiso Tshetu, Phoebe Sibomana, Prosperity Mambinya, Sicelo Kula and Zikhona Gwadiso. Over the year there was a good mix of urban and rural stories. Popular FunDza author Sonwabiso Ngcowa produced two particularly poignant stories based in the rural Eastern Cape. ‘Damage’ dealt with poverty and abuse, while ‘Stolen Away’ was about a young girl being forced into marriage. Romance is always a popular theme. Cebisa Zono wrote ‘Church Girl’ in isiXhosa – his mothertongue. This was then translated into English. This was Cebisa’s second story for FunDza – the first was a gay love story set in rural Eastern Cape. We’ve also published several crime stories: first time author Lazola Pambo’s ‘The Grizzly Bear Gang’ was a short novel published by FunDza.
FunDza has worked with a number of organisations on special story projects. With UCT’s Perinatal Mental Health Project, FunDza higlighted the issue of teen pregnancy through the story ‘Pieces of Paper’, by accomplished author Michelle Faure. The story linked to useful resource material for pregnant teens who are required to navigate the challenges of being a young mother. Mutual and Federal Community Trust sponsored a series of three short stories that dealt with the themes of migration and transformation. ‘A trail of dust’ by Epiphanie Mukasano centred on migration across the continent. The story was based on the true-‐life experiences of a young Rwandan refugee who fled her country and travelled – without adult supervision – through four countries to reach South Africa. Lauri Kubuitsile’s ‘Where is Home?’ looked at the issue of moving from a rural to an urban area. The issue of how technological knowledge can disrupt and transform life in a rural village was explored in Bontle Senne’s ‘In the shadows of my dreams’. Harry Crossley provided FunDza with funding to run a special project that shone a light on the difficulties facing young people who make the transition to studying at tertiary level. For this ‘Breaking Barriers/Transition Stories’ project, FunDza ran a writing workshop with nine people who had successfully made the transition to study at a higher education institution. They wrote essays about their real-‐life experiences. These were published in the non-‐fiction, feature article section in FunDza’s ‘library’. Two participants – Sicelo Kula and Nosibusiso Tshetu – together with FunDza writer Zimkhitha Mlanzeli then wrote fictional short stories about young people making this transition. Comments from readers show that these stories hit a chord, with many saying that they wanted to study further but hadn’t previously felt the confidence to pursure their dreams. With the UNHCR, FunDza ran a story project and reading competition to raise awareness for World Refugee Day on 20 June 2013. The story ‘Finders Keepers’, written by Ros Haden and Phoebe Sibomana, drew attention to issues of xenophobia through a highly engaging love story. This highly successful project included a competition, which attracted almost 3,000 entries. In addition to its own original content, FunDza publishes third-‐party content in both its library and its ‘bookshop’ (where readers pay small amounts of ‘moola’ to read books). Content partners include the African Storybook Project and Nal’ibali which have both allowed FunDza to republish their content in our ‘library’. These children’s stories have proved popular with readers and are a great way of encouraging older siblings or parents to read to their younger siblings or children. Other providers to FunDza’s library include: New Readers Publishers, UKZN Press, Townsend Press, the Mail & Guardian, and a number of individual writers. In addition, New Africa Books (now renamed David Philips Publishers) has allowed FunDza to republish its Siyagruva series and other titles in its Bookshop. These are made available to readers for very small amounts of ‘moola’ – they are generally sold at just 12c per chapter. While no one will be retiring on the proceeds, this initiative does mean that fantastic South African content is now available to our readers. We greatly appreciate this support – we know that it is the content that keeps readers coming back to FunDza for more.
Innovative technology heightens appeal The words ‘growing communities’ are key to this programme – how can we excite young people about reading and then get them to share this love with their friends, their family and their wider community. The great thing about mobile technology and social media is that it is inherently community and communication-‐oriented. Harnessing this aspect is key for the programme. FunDza was lucky enough to have funding from a number of partners dedicated to technology development. The Indigo Trust provided FunDza with ICT-‐specific funding to significantly improve the backend and features of the mobi network. The Harry Crossley Foundation provided a grant to upgrade the old ‘mobi site’ – built specifically for mobile phones rather than any other device – into a responsive site that can determine what type of device is accessing it (i.e. computer, tablet, phone) and then display the content in the most user-‐friendly way for that particular device. FunDa’s original mobi network was built on a shoestring budget and did require a significant upgrade. FunDza’s technology partner, The Lateral Alternative, has been working hard to build a substantially more secure and stable platform that allows users faster access to content in ways that are data-‐light. Most importantly, the improvements have meant deeper engagement with our readers. The three most significant changes in terms of reader engagement are:
• A messaging service to all Mxit users: This has been a great marketing tool and allows FunDza to inform readers when new content is available. FunDza can message more than 100,000 users at the click of a button – and we can see that these messages have an immediate impact on readership.
• A sharing tool on Mxit: This allows Mxit users to share content with their friends and is helping us to grow the readership base organically.
• A survey and competition tool: This allows the set up of surveys and competitions with relative ease. Readers love competitions, so this has helped with engagement, and the survey aspect has facilitated our monitoring and evaluation enormously. This is vital for our organisation.
The responsive site – designed by Tenacity Works and implemented by The Lateral Alternative – has also incorporated a range of social features, such as sharing via Facebook and Twitter, and easy commenting on stories. We can see that this is now encouraging more people to access the internet version of our site – around 10% of our total readers are visit the responsive site, up from around 5% a year previously. FunDza is looking forward to making even greater improvements to its systems. In particular, it will be finding ways to customise the reader experience – providing user profiles, giving readers badges for their reading performance, allowing readers to easily rate content, and introducing some eLearning tools – such as comprehension quizzes to accompany the content. In addition, FunDza is continuously investigating how to grow even more communities of readers. It is looking at how to share its content across other social and mobile platforms. It is also looking at building a dedicated FunDza reading App.
Men to r i n g new t a l e n t Thanks to funding from the National Arts Council, FunDza has been able to embark on an ambitious writing mentorship programme. As part of this programme, FunDza will pair a talented and enthusiastic young writer with an established writer to each produce a short story for FunDza’s mobi network. The first year’s programme ran in the Western Cape with these pairs of mentors and mentees: Maire Fisher with Jean-‐Paul Willemse; Joanne Hichens with Phoebe Sibomana; Michelle Faure with Zikhona Gwadiso; Asavela Peko with Sonwabiso Ngcowa; and, Helen Brain with Mzimkhulu Mackenzie. Each pair of stories had to be connected in some way. In some instances, writers continued the story but using a different character as the main voice; in others, the location became the connection point. The pairs of writers worked together to develop their stories. The emerging writers gained invaluable experience in writing and in having a platform through which they could showcase their work. Mentors were also challenged by their young mentees to keep their stories fresh, and to give authenticity to their characters. The short stories were published between October and December of 2013. They were then compiled into a print anthology – It Takes Two! – which was released in the 2015 financial year. FunDza is proud of this project that resulted in the publication of 10 fabulous and uniquely South African short stories, enjoyed by thousands of readers. The writers wrote across a variety of themes from romance to crime and human drama. What makes this project so interesting is the range of writing styles. The writers’ voices really shone through their work and they weren’t scared to tackle some difficult issues. FunDza is grateful to the National Arts Council for their support in providing young writers with an opportunity to be both developed and also published.
D eve l op i n g You n g W r i t e r s Literacy development is not simply about the ability to read text, it is also about the ability to communicate in written form with clarity and purpose. To this end, FunDza encourages its readers to develop their writing skills, and find their own unique voice. It does this in two ways: firstly, it provides a publishing platform on its mobi network; and secondly, it hosts a variety of writing workshops aimed at improving writing skills.
The ‘Fanz’ publishing platform FunDza readers are encouraged to submit their work to FunDza for publication in the ‘Fanz’ section of the mobi network. The platform is available to all teens and young adults who have a passion for writing. The content is lightly edited so that the piece retains the ‘voice’ of the writer but is also grammatically correct. FunDza’s Fanz editor, Zimkhitha Mlanzeli, provides writers with feedback on their work and with ideas on how they can improve their writing. FunDza also publishes regular ‘Tips for Writers’ as part of a growing resource for aspirant writers. Tips include things such as: using the right punctuation mark in the right place; learning the rules for capitalisation; using atmospheric descriptive words; avoiding cliches; and, developing three-‐dimensional characters. These tips and advice are warmly received by Fanz, and their comments reflect this. As Pearl McKenzie wrote: “Thank you so much, Zimkhitha. I will most definitely apply what you’ve suggested to me. I thank you for reading and editing my story. Your constructive criticism encourages me to do better next time. Thank you for publishing the story as well. I appreciate it.” Thanks to the efforts and encouragement of Zimkhitha, the number of writers, and the amount of work published, has increased substantially. By the end of February 2014, FunDza had published the work of 400 young aspirant writers. The readers of the Fanz work are also enjoying it enormously and they provide these young aspirant Fanz writers with encouragement and feedback. FunDza aims to deepen its development of young talent through its ‘Starz’ project, which it launched in January 2014. In this, we identify committed Fanz writers and help to develop them to become commissioned authors of FunDza short stories for the Growing Communities of Readers programme. This includes being guided through a story development process: writers work with Zimkhitha to develop an exciting plot, written as short chapter summaries, from which they develop the narrative, and flesh out the characters. This requires discipline, time and effort, and those who persevere find themselves becoming commissioned writers. One of the big difficulties that many of our writers face is lack of good writing equipment. Many of the writers are working on old phones and they use Mxit’s email package to send through their written work.
Write4Life workshops FunDza also presented a number of writing workshops. A new, very popular workshop has been ‘Branding Me’ which reached 80 young people in the year. The workshop guides participants to recognise their strengths and interests in order to work out the kind of work they are interested in, and to develop vocabulary to describe themselves in covering letters and CVs. FunDza first presented this two-‐day workshop at Etafeni, and then modified it for Communiversity in Vrygrond, and AVA in Claremont. All evaluations were very positive, and the director of AVA informed us that their participants had rated it as the most useful workshop of the year (they have monthly workshops). In December FunDza ran an intensive day workshop called ‘Investigating Life’ with nine young people who were interested in journalism. Two professional journalists were employed to run the training, and the final outcome of the course was for each young person to write an investigative article that was published on FunDza’s site. This subsequent writing process was supported via email, and some of the writers came into the office for further support. FunDza hosted five ‘Writing a good essay’ workshops. Three were held in the Eastern Cape (see the following special report), one with 20 participants from Kuyasa, Franschhoek, and another with 45 participants from a Kayamandi high school. All groups also received booklets giving useful tips about how to write a good essay.
S uc c e s s S to r y ! In February 2013 FunDza started a blog, The Diary of Zinzi Zwane, which follows the life of a fictional character who had relocated from Port Elizabeth to Cape Town. The blog is published in real time and readers get to comment and give advice to Zinzi. The blog was originally written by Zimkhitha Mlanzeli but, after a couple of months, we decided to see if one of the Fanz writers could take it on as a commissioned job. Three writers were selected to try it out and from these Anathi Nyadu was selected as the new ‘Zinzi Zwane’! Anathi is a second year Media Studies student at the University of the Free State. He started submitting his poems to FunDza in 2012. In total he has submitted 20 poems, two short stories and five essays. Readers love his writing too. As these readers commented:
“Well, that’s marvellous writing, author. Big ups to you! Wishing you growth and all the best.” “I respect the writer. Truth of life, I love this story. It helped me see the other side of the story.”
Anathi started writing the Zinzi blog in July 2013 and, since then, he has risen to the challenge. During the course of the year, 105 Zinzi Zwane blog posts were published, 63 of these written by Anathi. Being a 20-‐year-‐old male, and writing the blog of a fictional 19-‐year-‐old girl, is not always easy. Plus, being a full-‐time student and committing to submit around 8 blog posts every month can be tough going. But Anathi has proven that he’s up to the challenge, and we, at FunDza, are very proud to have him as part of our ‘FunDza family’.
Eas t e r n C ap e w r i t i n g r o ad t r i p Thanks to funding from the HCI Foundation, FunDza was able to take a 'road trip' to the Eastern Cape and run three writing workshops with learners and teachers at schools near Qunu. The aim of the workshops was to impart skills and knowledge around essay writing for school. Writing essays is a requirement for all language subjects in the school curriculum, and indeed forms a substantial part of the final language exam for grade 12. However, outside of school, or even inside of school, learners seldom get to read essays, as it is a very particular genre. FunDza compiled a 24-‐page booklet for the workshops. This will be used to run similar workshops. This has been translated into Afrikaans for use in schools in the Western Cape. The first workshop was with 19 teachers from 10 different schools in the Qunu vicinity. All taught grades 7, 8 or 9. It was a very successful workshop as the FunDza facilitators took the teachers through activities that they could use with their classes. Because the activities are carefully structured, but are largely participant-‐led, they were as useful for the teachers as for learners. The feedback from the teachers was enthusiastic, as the following shows…
“The group essay was outstanding. It showed me the skill of getting through to my learners and make them love essay writing as it provides fun moments. Every part of the workshop was superb… I gained more insight into how to make my lessons more interesting to my learners.” “I have never been able to tackle teaching essay writing , now I am going to teach my isiXhosa class with confidence.”
FunDza then hosted two one-‐day workshops for grades 7, 8 and 9 learners at Bavumele Junior Secondary School and Mqanduli Junior Secondary School, both in rural areas near Qunu. For these two workshops 55 learners were taken through the process of reading, discussing, brainstorming, and finally writing a collaborative essay. Xoliswa Guzula and her two team members from the Nelson Mandela Institute, who were also there to observe, joined in the proceedings with some lively activities. Other observers included the principals and teachers from the schools, and staff members from Axium, an educational NGO working in the area. The workshops were very successful, with learners quiet at first, but soon warming up to participate and make their contributions. The observing teachers (who had attended our first workshop) have since reported that they have themselves been able to use these activities with their own classes. As Nathalie Koenig, Axium’s Literacy Coordinator wrote: "It's great to see resources and activities in action that use simple literacy concepts and best practice to make an impact where it's really needed. I'm excited about implementing more of the activities with learners in the classes I engage with... and getting some aspiring writers onto the mobi site too!”
FINANCIAL STATEMENTS INDEPENDENT AUDITOR’S REPORT
We have audited the annual financial statements of The FunDza Literacy Trust which comprise the Trustees’ report, the statement of financial position as of 28 February 2014, the statement of comprehensive income, the statement of changes in accumulated funds, the statement of cash flows for the year then ended and a summary of the significant accounting policies and other explanatory notes.
Trustees’ Responsibil ity for the Financial Statements The Trustees of the Trust are responsible for the preparation and fair presentation of these financial statements in accordance with International Financial Reporting Standards for Small and Medium-‐Sized Entities. This responsibility includes designing, implementing and maintaining internal controls relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error, selecting and applying appropriate accounting policies, and making accounting estimates that are reasonable in the circumstances.
Auditor’s Responsibil ity Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with International Standards on Auditing. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements.The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal controls relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, by not for the purpose of expressing an opinion on the effectiveness of the entity’s internal controls. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the Trustees, as well as evaluating the overall presentation of the financial statements. We believe tha the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Opinion In our opinion, the financial statements present fairly, in all material respects, the financial position of the Trust as of 28 February 2014, its financial performance and its cash flows for the year then ended in accordance with International Financial Reporting Standards for Small and Medium-‐Sized Entities. Accounting and secretarial duties Without qualifying our opinion, we draw attention to the fact that with the written consent of all Trustees, we have performed certain accounting and secretarial duties. Bruce Heyns CA (SA) RA Date: 21 July 2014
REPORT OF THE TRUSTEES The trustees have pleasure in submitting their Trustees’ report together with the audited financial statements for the year ended 28 February 2014.
General review The FunDza Literacy Trust is a community-‐based trust and is registered as a non-‐profit organisation (095-‐260-‐NPO) as well as a Public Benefit Organisation (PBO number 930039651). The main purpose of this Trust is to provide resources and materials to enrich learning and promote literacy to black South African youth, specifically the poor and needy based in historically disadvantaged areas, and all related or ancillary activities. The trust’s major donor, the DG Murray Trust, as well as other smaller donors require beneficiary organisations to be subject to a voluntary audit to ensure that funding is being spent in the manner it was intended.
Statements of responsibil ity The trustees are responsible for the maintenance of adequte accounting records and the preparation and integrity of the financial statements and related information. The auditors are responsible for reporting on the fair presentation of the financial statements. The financial statements have been prepared in accordance with International Financial Reporting Standards for Small and Medium-‐Sized Entities. The trustees are also responsible for the Trust’s system of internal financial controls. These controls are designed to provide reasonable, but not absolute, assurance as to the reliability of the financial statements, and to adequately safeguard, verify and maintain accountability of assets, and to prevent and detect misstatement and loss. Nothing has come to the attention of the trustees to indicate that any material breakdown of the functioning of these controls, procedures and systems has occurred during the period under review. The financial statements have been prepared on the going concern basis, since the Trustees have every reason to believe that the Trust has access to adequate resources to continue in operation for the foreseeable future.
Financial results The financial results reflect funding receipts of R3,568,067 (2013: funding receipts of R2,450,999) and a net surplus of R1,011,914 (2013: net deficit of R142,000). Full details of the financial results follow.
Trustees The trustees of the Trust duing the period under review and up to the date of this report are as follows: Ms CM Hardie Ms S Mgabadeli Ms L Rangaka Mr WAR Weeks Ms B Dlamini
Physical and postal address 85 Main Road, Muizenberg, 7945
Beneficiaries The beneficiaries of the Trust are Black South African Youth and organisations that benefit them.
Auditors John Lightfoot CA (SA) RA will continue in office.
STATEMENT OF FINANCIAL POSITION
Notes 2014 (R) 2013 (R)
ASSETS Non-‐current assets 1 1 Investments 4 1 1
Current assets Cash & cash equivalents 7.2 1,715,982 899,647
Total assets 1,715,983 899,648
FUNDS AND LIABILITIES Capital and reserves 1,650,464 638,550 Capital funds 2 500 500 Accumulated funds 1,649,964 638,050
Non-‐current liabilities Loan payable 5 -‐ 249,367
Current liabilities 65,518 11,730 Provision 6 19,750 11,730 Trade & other payables 45,768 -‐
Total funds and liabilities
1,715,983 899,648
STATEMENT OF COMPREHENSIVE INCOME
Notes 2014 (R) 2013 (R)
Donations received 3 3,568,067 2,450,999
Less: Direct costs -‐ -‐
Other income 152,844 46,908 Income received 68,433 7,615 Rental income -‐ 9,000 Interest income 84,411 30,293
Gross surplus 3,720,911 2,497,907
Total expenses 2,708,998 2,639,907
Expenses: Building for sustainable impact 807,428 1,629,695 Accounting fees 37,372 31,022 Bank charges 2,496 2,529 Board expenses 5,198 12,843 Consulting, training and monitoring & evaluation 150,665 8,748 Entertainment 2,297 3,747 General – Miscellaneous 10,259 5,082 Legal fees 1,898 19,525 Marketing & promotions 31,820 1,059,045 Office expenses – Miscellaneous
4,851 28,022
Printing & stationery 3,576 2,233 Rent expense
37,360 25,700
Salaries
412,004 406,198 Telephone & fax
12,717 8,878
Travel
93,615 14,936 Web hosting
1,300 1,185
Expenses: Popularising Reading
683,032 467,896
Book purchases
407,839 251,964 Delivery charges
16,886 11,842
General – Miscellaneous
13,293 1,891 Packaging Materials
676 1,062
Salaries
238,768 197,695 Travel
5,570 3,442
Expenses – Growing communities of readers
964,685 495,840
General – Miscellaneous
18,395 3,220 Mobi content & development costs
734,838 288,950
Salaries
211,452 203,670
Expenses: Developing young writers
253,853 46,476
Facilitation
51,140 25,600 Travel
13,679 -‐
Salaries
137,909 18,188 Workshops
51,125 2,688
Net surplus / (deficit) for the period
1,011,914 -‐142,000
STATEMENT OF CHANGES IN CAPITAL FUNDS
Capital funds (R) Surplus / (deficit) funds (R) Total (R)
Balance at 29 February 2012 500 780,050 780,550 Net surplus/ (deficit) for the period -‐ -‐142,000 -‐142,000 Balance at 28 February 2013 500 638,050 638,550 Net surplus/ (deficit) for the period -‐ 1,011,914 1,011,914 Balance at 28 February 2014 500 1,629,964 1,650,464
STATEMENT OF CASH FLOWS
Notes 2014 (R) 2013 (R)
Cash flows from operating activities
Cash generated by / (utilised in) operations 7.1 1,065,702 -‐210,795
Net cash inflow/ outflow from operating activities 1,065,702 -‐210,795
Cash inflows from investing activities
(Increase)/ decrease in loans receivable -‐ -‐
Net cash inflow/ (outflow) from investing activities -‐ -‐
Cash flows from financing activities
Increase/ (decrease) in loans payable -‐249,367 -‐
Net cash inflow/ (outflow) from financing activities -‐249,367 -‐
Net increase/ (decrease) from in cash and cash equivalents 816,335 -‐210,795
Cash and cash equivalents at the beginning of the year 899,647 1,110,441
Cash and cash equivalents at the end of the year 7.2 1,715,982 899,647
NOTES TO THE ANNUAL FINANCIAL STATEMENTS
1. Accounting policies
1.2 Basis of preparation
The annual financial statements have been prepared in accordance with International Financial Reporting Standards for Small and Medium-‐Sized Entities and incorporate the following principal accounting policies which have been consistently applied in all material respects.
1.2 Financial instruments Initial recognition The entity classifies financial instruments, or their component parts, on initial recognition, as a financial asset, a financial liability or an equity instrument in accordance with the substance of the contractual arrangement. Financial assets and financial liabilities are recognised on the entity’s statement of financial position when the entity becomes party to the contractual provisions of the instrument. Loans payable/receivable Loans payable/receivable are recognised initially at the transaction price including direct transaction costs, unless the arrangement constitutes, in effect, a financing transaction. If the arrangement constitutes a financing transaction, the entity measures the financial asset or financial liability at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Loans payable/receivable are subsequently measure at amortised cost using the effective interest method. Loans that are classified as current assets or current liabilities are measured at the undiscounted amount of the cash or other consideration expected to be paid or received. Trade receivables Trade receivables are carried at the transaction price including direct transaction costs. An allowance for estimated irrecoverable amounts is recognised in the statement of comprehensive income when there is objective evidence that the asset is impaired. Trade payables Trade payables are carried at the transaction price including direct transaction costs. Cash and cash equivalents Cash and cash equivalents comprise cash at the bank and cash on hand. Cash and cash equivalents are short-‐term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of changes in value. These are initially and subsequently recorded at fair value.
1.3 Revenue Revenue, comprising of donation and project funding from various donors, is measured at the fair value of the consideration received or receivable exclusive of Value-‐Added Tax. Revenue is recognised as it accrues to the entity in the normal course of business. Interest revenue is recognised at fair value using the effective interest method.
1.4 Comparative figures Where necessary, comparative figures have been adjusted to conform with any changes in presentation in the currrent year.
2. Capital Funds
2014 (R) 2013 (R) Opening balance 500 -‐ Initial founding donation – Cover2Cover Books (Pty) Ltd -‐ 500 Closing balance 500 500
3. Surplus/ (deficit) from operations The surplus/ (deficit) from operations is arrived at after taking into account the following:
2014 (R) 2013 (R) Funding from donations received: Donations 3,568,067 2,450,999 Building for sustainable impact 1,456,171 1,641,669 Popularising reading 473,986 135,180 Growing communities of readers 1,189,644 422,250 Developing young writers 310,700 101,900 Other 17,566 -‐ Robust tracking instruments (DGMT) -‐ 150,000 National Arts Council of South Africa (NAC) 120000 -‐
4. Investments Cover2Cover Books (Pty) Ltd 1 1 The Trust owns one (1) Ordinary share of one Rand (R1) in Cover2Cover Books (Pty) Ltd. The investment is carried at cost less impairment value.
5. Loans receivable/ (Loan payable) Cover2Cover Books (Pty) Ltd -‐ -‐249,367 The above loan is unsecured and bears no interest. The loan was incurred in the ordinary course of business and the terms are equivalent to those that prevail in arms length transactions. The loan was repaid in full during the financial year.
6. Accounts payable Provision for employees tax 19,750 11,730
7. Notes to the statement of cash flows
7.1 Reconciliation of net surplus to cash flows from operations
2014 (R) 2013 (R)
Net surplus/ (deficit) for the period 1,011,914 -‐142,000 Operating surplus/ (deficit) before working capital changes 1,011,914 -‐142,000 (Decrease)/ increase in trade and other payables 53,788 -‐68,795 Cash generated from/ (utilised by) operations 1,065,702 -‐210,795
7.2 Cash and cash equivalents Cash and cash equivalents consist of cash on hand and balances with banks. Cash and cash equivalents included in the cash flow statement comprise the following balance sheet amounts:
2014 (R) 2013 (R)
First National Bank – Cheque Account 236,530 14,354 First National Bank – 7-‐Day Interest account 1,479,453 885,293
1,715,982
899,647
8. Taxation The entity is registered as a Non-‐Profit Organisation (095-‐260-‐NPO) and Public Benefit Organisation (PBO Number 930039651). The entity is exempt from the payment of income tax in terms of Section 18A of the Income Tax Act. In addition, the entity is exempt from the payment of income tax on any investment income up to a maximum of R50,000 per annum per section 10(1)(e) of the Income Tax Act and, furthermore, section 10(1)(cN) exempts receipts and accruals derived from unrelated business undertakings and trading activities to the greater of 5% of total receipts and accruals, or R200,000, during the relevant year of assessment. No provision for taxation has been made from unrelated business undertakings and trading activities due to the provisions of s10(1)(cN) whereby income received from trading activities, being R152,844, is exempt on the basis that it does not exceed R200,000.
9. Related parties During the course of the business, the Trust enters into various transactions with related parties. These transactions are under terms which are no less favourable than would be arranged with third parties.
2014(R) 2013(R)
Related party Relationships Cover2Cover Books (Pty) Ltd Associate Investment
Related party transactions Cover2Cover Books (Pty) Ltd -‐ -‐249,367
10. Contingent liabilities
No contingent liabilities or commitments satisfying the criteria required in Section 21 of the international Financial Reporting Standards for Small and Medium-‐Sized Entities have been identified.
11. Going concern The financial statements have been prepared on the going concern basis, since the Trustees have every reason to believe that the Trust has access to adequate resources to continue in operation for the foreseeable future.
FUNDZA SUPPORTERS Without the generous support it receives from foundations, grant-‐making organisations, corporate social investment entities, smaller companies and individuals, FunDza would be unable to develop and grow its programmes. In the words of former President Nelson Mandela: “We must use the time wisely and remember that the time is always ripe to do right.” We thank our supporters for joining us on this quest.
Organisational grants and/or unrestricted funding Claude Leon Foundation Cover2Cover Books David & Elaine Potter Foundation DG Murray Trust Enterpriseroom Krista Tuomi Nussbaum Foundation The Funding Network The Learning Trust
General support in kind Spoor & Fisher (trademark registration) Graeme Hardie & anonymous donor (accommodation and support for US trip)
Popularising Reading: Books for schools Ben Rabinowitz Siber Ink
Popularising Reading: Special projects Anglo American Chairman’s Fund (Extended Reading for Pleasure project) Zonke Monitoring Systems (Thandokhulu Library project) DG Murray Trust (Jinqi Community Reading groups) Khulua Foundation (travel grant for conference)
Popularising Reading: Support in kind Patricia Schonstein
Growing Communities of Readers: Programme support Indigo Trust Harry Crossley Foundation 476 Charitable Education Trust Second Stella and Paul Loewenstein Charitable & Educational Trust The Learning Trust
Growing Communities of Readers: Special Projects Harry Crossley Foundation (Breaking Barriers/Transition stories project) Mutual & Federal Community Trust (Migration & Transformation stories) National Arts Council (Mentoring Our Future Writers project – Western Cape) UNHCR (World Refugee Day Awareness project)
Growing Communities of Readers: Support in kind Blackberry SA Catriona Ross Hetzner Mail & Guardian Mxit Reach New Readers Publishers New Africa Books The Lateral Alternative UKZN Press
Developing Young Writers: Special Projects HCI Foundation (Workshops in the Eastern Cape) Cover2Cover Books (Workshops in Nyanga/Gugulethu)
FUNDZA BENEFICIARY GROUPS Thank you also to our partner beneficiary groups around the country who inspired young people to read our books, and who reported back to us on how the books were used. Here are the groups that we supported in the 2013 financial year.
Eastern Cape Axium Education Bethelsdorp Comprehensive School Cebe Junior Secondary School Dept of Education Grahamstown Diukile Junior Secondary School Engen Maths & Science Schools (East London) Friends of Lettie De Klerk Primary School Gasa Junior Secondary School Gcinubuzwe Combined School Get Ahead College Holy Cross High School ITEC Jabulani Rural Health Foundation Jingqi Kantolo Junior Secondary School Kimbili Junior Secondary School LoveLife (P.E.) Makgato High School Malikhanye Senior Secondary School Maluti Combined school Mary Waters High School Masifunde Learner Development Mazakhele Senior Primary Mlambondaba Primary School Mqanduli Junior Secondary School Mqanduli Village Junior Secondary School Mthonjeni Primary School Nelson Mandela Institute at Fort Hare Ntabankulu Senior Primary School Paterson High School Qunu Junior Secondary School R. H. Godlo Primary School Seaview Senior Secondary School St Thomas Senior Secondary School The ASAP Foundation (African Solutions to African Problem) Tyhilulwazi High School Unako Community Based Movement Upstart Valelo Junior Secondary School Zwelidumile Senior Secondary School
Free State Bloemfontein OOS Intermediate School Inqubela Foundation Lesedi Youth Empowerment LoveLife (Bloemfontein)
Gauteng Abrahamkriel Childcare Ekupholeni Mental Health and Trauma Centre Glen-‐cowie 'fun-‐fun' reading club Ikamva Youth Gauteng -‐ Ivory Park Ikamva Youth -‐ Mamelodi Ikamva Youth -‐ Ebony Branch LEAP Science & Maths School -‐ 3 LEAP Science & Maths School -‐ 4 LEAP Science & Maths School -‐ 6 Learners Representative Council Liberty Community School LoveLife Miyela Ntswane Secondary School OLICO Youth Sekolo sa Borokgo Song Foundation The Khulula Foundation The Maths Centre U.J. Book Club Young Woman Manyano (Mabopane grout 1137) Zimisele Secondary School
KwaZulu-‐Natal Abalindi Welfare Society Africaid Amoibe Primary Blossom Beauty Princess foundation Cebelihle Primary Dumela Primary School Family Literacy Project Greytown Children's Home Harvest High School Hlazakazi Primary School Ikamva Lisezandleni Zethu Ikamva Youth -‐ Umlazi Inanda Seminary Isandlwana LoveLife (Durban) Mampunga Primary Mhawu High School Ntalantala Secondary Pietermaritzburg Children’s Home (PCH) Qiko High School Shiyane Secondary Siyanda Secondary Springlake Secondary Youth Life-‐Changing Development Center
Limpopo Joel Sibasa Secondary School LEAP Science & Maths School -‐ 5 LoveLife (Polokwane) Matseutseu Maropeng Combined School Nourish Rasila Secondary Sautini Community Library St Marks College Zingela Ulwazi
Mpumulanga Bethal Private Primary School Bondzeni High School Chakaza Primary School Edwaleni Primary School Elukwatini Primary School Enkhokhokhweni Primary School Father Charles Primary School Funindlela Primary School Hlanganani Secondary School Hoechst Primary School Imagine Scholar South Africa Intfutfuko Primary School Kamhola Secondary School Kwena Basin Education Trust Lamagadlela Primary School Lamzinyane Primary School LoveLife (Mpumalanga) Mbhandule Senior Secondary School Mgubho Combined School Sikhulile Secondary School Uplands Outreach Zama-‐Zama High School
North West Charora Ikamva Youth -‐ Ikageng Keledi Middle School Lebone II _ College of the Royal Bafokeng LoveLife (North West) Mafenya Middle School Matale Middle School Matsukubjane Middle School Mmanape Molotlegi Middle School Operation: Rooigrond Sekete Seolo Middle School St Geralds Middle School Thekwane Middle School Thethe
Northern Cape Hantam Community Education Trust Lehikeng Intermediate School LoveLife (Kimberley) Moholeng Primary School Sediba Sa Kitso
Western Cape Alicedale Primary School
Amy Biehl Foundation Beyond Expectation Environment Project Bright Start Buren High School Cape Town High School Christel House Claremont High School COSAT Desmond Tutu HIV Foundation Youth Centre Education Without Borders Equal Education / The Bookery Goedgedacht Trust Grassdale High School Greater Stellenbosch Development Trust Hazendal Primary School Heathfield Primary School Hector Peterson SSS Helderberg Uitreik (Uyavula Literacy Project) help2read Hlengisa Junior Secondary Ikamva Youth -‐ Makhaza, Khayelitsha Ikamva Youth -‐ Masiphumelele Ikamva Youth -‐ Nyanga Isibane Sethemba Social Development iThemba Labantu Kannemeyer Primary School Kuyasa Empowerment LEAP Science & Maths Schools – 1 and 2 Learner's Movement of South Africa Legacy Community Development LoveLife (Mowbray) Luhlaza High School Macassar Library Manyano High School Masakhe Community Development Programme Masiphumelele Library Masiyile High School Matthew Goniwe High School Michelle Faure MissWrite Muizenberg High School Oaklands High School Oude Molen Academy of Science and Technology Parkwood Primary PRAESA Vulindlela Reading Clubs Prince George Primary SCORE Silikamva High School South African Education and Environment Project Steenberg High School Sullivan Primary School Thandokhulu Secondary School The Best Centre The Cape Academy of Mathematics, Science & Technology The Communiversity of South Africa The Kusasa Project The Reading Room Thembelihle High School Vision AfriKa Vrygrond Library Wallacedene Secondary School Woolhope Secondary School Zip Zap Circus School